Wrapped bitcoin arrives on Hedera, opening a direct path for BTC holders to tap DeFi without selling. The rollout aims to grow liquidity and attract builders.
What is wrapped bitcoin and why it matters on Hedera?
In practice, WBTC is a 1:1 tokenized representation of Bitcoin held by regulated custodians. It can be redeemed for BTC kept in reserve. On Hedera, it will allow holders to retain BTC exposure while using smart-contract tools, including lending, staking, trading, and liquidity provision.
How WBTC expands Bitcoin DeFi on Hedera
However, Bitcoin’s base chain lacks native smart-contract functionality, which has kept many DeFi systems out of reach. By issuing tokenized BTC on smart-contract platforms, users unlock new use cases without selling coins. On Hedera, WBTC now plugs BTC into lending, borrowing, trading, and broader DeFi workflows.
The rollout was confirmed on November 13, 2025 in the launch announcement.
Who backed the rollout and how do assets move?
Moreover, the launch is supported by BitGo — the primary WBTC custodian and a member of the Hedera Council.
BiT Global and LayerZero also contributed, supplying cross-chain connectivity. BitGo’s Council role dates to February 28, 2024, as outlined in this Hedera update.
That support underpins minting, redemption, and movement of WBTC between networks.
What does Hedera offer DeFi users?
That said, Hedera markets itself as fast and low-cost, with predictable fees. Its consensus design aims to curb frontrunning and reduce miner-extractable value (MEV), long-standing pain points for users on other chains.
The goal is to improve fairness and execution quality for decentralized markets.
Will WBTC lift Hedera liquidity and TVL?
Meanwhile, Hedera is seeking to add liquidity across its DeFi stack. With WBTC live, BTC holders can wrap coins and deploy them on Hedera’s smart-contract platforms for lending, borrowing, trading, and liquidity provision.
Moreover, the network’s TVL has increased over the past year and it continues to draw developers and institutional partners.
In addition, by market capitalization, the value of HBAR places Hedera among larger digital-asset networks. That positioning could help attract liquidity providers looking for predictable fees and new yield sources.
Is Bitcoin in DeFi entering a new phase?
Furthermore, the addition of WBTC on Hedera mirrors a broader shift to using Bitcoin in decentralized finance. Proponents argue BTC can be a productive asset for lending, staking, and trading while remaining a store of value.
Industry events increasingly spotlight efforts to build a trustless, permissionless financial layer with BTC as collateral and capital. Major exchanges have identified “BTCFi” as a medium- and long-term trend, a view echoed by reporting on Bitcoin liquidity flowing into new DeFi rails.
As a result, WBTC on Hedera could spur fresh tools and products focused on Bitcoin.
In summary, wrapped bitcoin on Hedera gives BTC holders a bridge into DeFi while preserving exposure. With LayerZero, BiT Global, and BitGo involved, the network is positioned to channel new liquidity and expand use cases.