Wrapped Bitcoin (WBTC) is the tokenized version of Bitcoin. It maintains a 1:1 ratio with Bitcoin and serves as an ERC-20 token representing Bitcoin on the Ethereum blockchain.
👉 Discover how WBTC enhances Bitcoin's utility
Key Features of WBTC
- Market Capitalization: $12.46 billion (16th largest crypto asset)
- Circulating Supply: 275,330 WBTC
- Launch Year: 2019
- Blockchain: Ethereum (ERC-20 standard)
How WBTC Works
WBTC bridges Bitcoin's value to the Ethereum ecosystem through a regulated minting process:
- Deposit: Users send BTC to a merchant
- Minting: Merchant initiates WBTC creation via custodian
- Issuance: New WBTC tokens are minted on Ethereum
- Redemption: WBTC can be burned to reclaim BTC
This process is governed by:
- Custodians (hold the BTC reserves)
- Merchants (facilitate conversions)
- WBTC DAO (oversees smart contracts)
Why Use WBTC?
| Feature | Bitcoin (BTC) | Wrapped Bitcoin (WBTC) |
|---|---|---|
| Blockchain | Bitcoin | Ethereum |
| Smart Contract Compatibility | No | Yes |
| DeFi Applications | Limited | Full Access |
| Yield Opportunities | Basic | Advanced |
👉 Explore WBTC's DeFi potential
Where to Buy WBTC
Top Centralized Exchanges:
- Binance
- Coinbase
- KuCoin
- HTX
- Gate.io
Decentralized Exchanges:
- Uniswap
- Curve Finance
WBTC Use Cases
- DeFi Lending (AAVE, Compound)
- Yield Farming (Curve, Yearn Finance)
- Liquidity Mining
- Margin Trading on DEXs
WBTC vs Competitors
| Token | Blockchain | Market Rank |
|---|---|---|
| WBTC | Ethereum | 16 |
| renBTC | Ethereum | 124 |
| BTCB | BNB Chain | 204 |
FAQs
Is WBTC the same as Bitcoin?
No. WBTC is an ERC-20 token backed 1:1 by Bitcoin reserves. While their values are pegged, they function on different blockchains.
How secure is WBTC?
The system uses multi-signature wallets and regular audits. However, it's more centralized than native Bitcoin due to custodian requirements.
What are the risks of using WBTC?
- Smart contract vulnerabilities
- Ethereum network congestion
- Custodial risks (unlike non-custodial Bitcoin)
👉 Start your WBTC journey today
Future of WBTC
Developers plan to:
- Increase adoption in DeFi protocols
- Enhance cross-chain functionality
- Improve redemption processes
- Maintain BTC peg stability
Pros and Cons
Pros
- Enables Bitcoin use in Ethereum DeFi
- Transparent reserve backing
- Strong liquidity across exchanges
Cons
- More centralized than Bitcoin
- Additional smart contract risk
- Requires trust in custodians
With over $12 billion in market cap, WBTC has established itself as the leading tokenized Bitcoin solution for DeFi applications. Its continued growth demonstrates strong demand for Bitcoin functionality beyond its native blockchain.