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  2. /Glossary
  3. /Wrapped Bitcoin (WBTC)
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defi

Wrapped Bitcoin (WBTC)

An ERC-20 token on Ethereum that's backed 1:1 by Bitcoin held in custody.

Definition

An ERC-20 token on Ethereum that's backed 1:1 by Bitcoin held in custody. It lets Bitcoin holders participate in Ethereum's DeFi ecosystem by using their BTC as collateral for lending, trading on DEXs, and providing liquidity. BitGo originally custodied the backing Bitcoin, though custody has since expanded.

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Related Terms

Wrapped Token

A token representing another asset on a different blockchain.

Bitcoin

The first cryptocurrency, created in 2009 by the pseudonymous Satoshi Nakamoto.

DeFi (Decentralized Finance)

Financial services built on blockchain without traditional intermediaries.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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