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- WBTC now live on Hedera, offering Bitcoin holders DeFi access.
- Hedera’s low-fee, MEV-resistant network ensures secure smart contract use.
- BTC can now be an active financial instrument in lending, trading, and yield protocols.
Wrapped Bitcoin (WBTC), the largest tokenized version of Bitcoin, has officially launched on the Hedera network, marking a significant step for Bitcoin holders seeking access to decentralized finance (DeFi) ecosystems. This integration promises greater liquidity, faster transactions, and exposure to smart contract protocols without requiring users to sell their Bitcoin.
Hedera’s Low-Fee Network: A New Home for WBTC
Hedera positions itself as a high-speed, low-fee blockchain with no frontrunning or miner-extractable value (MEV). These features protect users from transaction manipulation, offering a more predictable and secure environment for DeFi activity. With WBTC now on Hedera, BTC holders can participate in lending, trading, and yield-generation while keeping their underlying Bitcoin fully backed.
The launch received backing from key players, including BitGo—the primary custodian of WBTC and a Hedera Council member—alongside BiT Global and interoperability provider LayerZero, ensuring smooth cross-chain functionality.
Bitcoin in DeFi: Unlocking Idle Assets
WBTC allows Bitcoin holders to “wrap” their BTC into a token that can interact with smart contracts on non-Bitcoin blockchains. This move opens doors to lending platforms, decentralized exchanges, and other DeFi protocols. Instead of sitting idle, Bitcoin can now function as an active financial instrument, supporting broader ecosystem growth.
Hedera has already seen a surge in DeFi activity, with total value locked rising significantly over the past year. Its native token, HBAR, ranks 19th in market capitalization, underlining the network’s growing credibility.
A Broader Trend in Bitcoin Finance
The expansion of Bitcoin into DeFi—sometimes called BTCFi—reflects a larger shift in the crypto industry. Experts believe Bitcoin should serve as more than a store of value. “Bitcoin DeFi is about building a trustless, permissionless financial system around Bitcoin, turning it into an active financial instrument,” said Jacob Phillips, co-founder of Lombard Finance.
Also Read: Asia Stocks Crash as Bitcoin Falls Below $100K — Is a Bigger Crypto Selloff Coming?
Platforms like Binance have also highlighted BTCFi’s potential to drive adoption, signaling that tokenized Bitcoin could be the foundation of a vibrant, decentralized financial ecosystem.
The launch of WBTC on Hedera represents a critical bridge between Bitcoin and DeFi. By combining Bitcoin’s stability with Hedera’s efficient, low-fee infrastructure, holders now have more opportunities to put their assets to work, helping fuel the growth of a new financial frontier.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
