Wrapped Bitcoin token
Overview
Wrapped Bitcoin (WBTC) is an ERC-20 token on Ethereum that represents Bitcoin (BTC) at a 1:1 ratio, backed by BTC held by a centralized custodian (BitGo). It enables Bitcoin holders to use their value in Ethereum-based decentralized finance (DeFi) applications.
Within the DeFi Intel graph, Wrapped Bitcoin connects to 12 tracked entities, most strongly to BitGo and Coinbase Wrapped Bitcoin.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 9 of 12 total).
| Relation | Connected entity | Confidence |
|---|---|---|
issued_by | BitGo | 95% |
competes_with | Coinbase Wrapped Bitcoin | 95% |
backed_by | Dai | 90% |
backed_by | crvUSD | 90% |
backed_by | Avalon USDa | 90% |
backed_by | Magic Internet Money | 90% |
backed_by | Dola | 90% |
backed_by | Frankencoin | 90% |
backed_by | Hydrated Dollar | 90% |
Frequently asked questions
What is Wrapped Bitcoin?
WBTC is a tokenized version of Bitcoin on the Ethereum blockchain, maintained by a group of merchants and custodians, allowing BTC to be used in DeFi protocols.
How is WBTC minted and redeemed?
Users deposit BTC with a merchant, who requests the custodian to mint an equivalent amount of WBTC. Redemption reverses this: WBTC is burned by the custodian, and BTC is released to the redeemer.
Is WBTC decentralized?
No, WBTC relies on a centralized custodian (BitGo) and a network of approved merchants, making it a trust-based wrapper rather than a trustless or decentralized asset.
What is Wrapped Bitcoin connected to?
In the DeFi Intel knowledge graph, Wrapped Bitcoin is linked to 12 other tracked entities, most strongly to BitGo and Coinbase Wrapped Bitcoin.
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