Hedera Foundation has partnered with BitGo and LayerZero to integrate WBTC and help unlock the next phase of decentralized finance adoption.
Summary
- The wrapped Bitcoin (WBTC) is now live on Hedera.
- Launch of the tokenized Bitcoin token brings institutional-grade Bitcoin DeFi to the HBAR network.
- Rollout is in partnership with BitGo, BiT Global, and LayerZero.
Wrapped Bitcoin, a tokenized version of Bitcoin, launches on Hedera amid growing demand for institutional-grade tools and solutions across the DeFi market.
The Wrapped Bitcoin (WBTC) token, backed 1:1 by Bitcoin (BTC) is a token that allows bitcoin holders to participate in DeFi, including across lending, trading and liquidity provision. Use has helped grow the decentralized finance market on the benchmark digital asset’s network, which currently has a total value locked of over $9.6 billion.
WBTC on Hedera
Hedera (HBAR) is looking to leverage the integration, which benefits from support by BitGo, BiT Global and LayerZero, to expand Hedera’s traction for Bitcoin DeFi, or BTCfi.
LayerZero will power this integration via its cross-chain infrastructure, with key support from Stargate Finance and SaucerSwap. The platforms see the launch of canonical WBTC on Hedera as the next step in putting idle Bitcoin liquidity to work in DeFi on Hedera.
James Hodgkins, chief growth officer at HBAR, Inc., said:
“Thanks to the institutional-grade benefits of Hedera, BTC holders can participate in BTCFi without the fear of frontrunning or MEV, in turn enabling a best-in-class experience for these large capital allocators. This milestone is an attestation to Hedera’s DeFi evolution – and that the world’s most trusted Bitcoin standard recognizes the strength and growth potential of the network.”
WBTC boasts a market cap of nearly $13 billion, with more than 126,000 BTC in custody.
The token commands a 65% market share of all BTC tokenized on the Ethereum network. Deployment on Hedera brings this new class of liquidity to users, allowing for new ways to engage with institutional-grade Bitcoin.
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