wBTC is a BTC-backed ERC20 token. Each wBTC in circulation is backed 1:1 by Bitcoin and is held in cold storage by BitGo, the first qualified custodian purpose-built for storing digital assets. Additionally, the ledger is publicly viewable to maintain transparency and enable trust in the network.
wBTC provides traders, institutions, and dapps a bridge to the Ethereum network while maintaining exposure to Bitcoin. Wrapping the asset enables token holders to participate in Defi and program smart contracts.
The ERC20 standard has been widely adopted by the Ethereum community and provides access to a variety of decentralized exchanges, wallets, and dApps. wBTC brings Bitcoin’s liquidity to DEXs and makes it possible to use Bitcoin directly in ETH-based smart contracts to trade, lend, and collateralize.
Interoperability Between Cryptocurrencies
wBTC standardizes Bitcoin to the ERC20 format, allowing Bitcoin to be used in any Ethereum smart contract.
Increased Transaction Speed
Tokenization of BTC using the Ethereum blockchain allows for an increased speed of verified transactions.
Use your freshly minted WBTC to earn interest on your BTC via Compound. Or send it to your favorite DeFi exchange to trade it for another ERC-20.