Wrapped Bitcoin is an ERC-20 token on the Ethereum
blockchain that represents Bitcoin
. Each WBTC is backed 1:1 with Bitcoin. Wrapped Bitcoin allows for Bitcoin transfers to be conducted quicker on the Ethereum blockchain and opens up the possibility for BTC to be used in the Ethereum ecosystem.
Bitcoin is held in custody by the centralized custodian, BitGo
. Bitcoin can be converted to Wrapped Bitcoin and vice versa easily.
WBTC was launched in January 2019
. BitGo, Kyber Network and Ren collaborated to find a way for users to bring more liquidity into the Ethereum ecosystem and that’s how Wrapped Bitcoin was created.
Most Decentralized Finance (DeFi)
activities take place on the Ethereum blockchain and Bitcoin holders have no access to a wide selection of DeFi applications which includes features like lending, borrowing, trading and more.
WBTC helps transfer the value of Bitcoin into the Ethereum blockchain so that users could start generating higher returns with their Bitcoin.