Wrapped Bitcoin (WBTC) is an ERC-20 token on Ethereum representing Bitcoin at a 1:1 ratio. Each WBTC is backed by real Bitcoin held in custody by BitGo. It enables Bitcoin holders to participate in Ethereum's DeFi ecosystem without selling their BTC.
2019
WBTC launches on Ethereum — first major wrapped Bitcoin
2020
WBTC supply surges 10x as DeFi Summer drives demand
2023
Justin Sun acquires BitGo stake — community debates custody risks
Using Bitcoin in Ethereum DeFi, liquidity provision, lending and borrowing against BTC
💡 Did You Know
Over 150,000 Bitcoin — worth billions — has been wrapped into WBTC, making it one of the most custodied assets in crypto
⚠ Controversies & Red Flags
WBTC requires trusting a centralised custodian (BitGo) to hold the underlying Bitcoin — a significant counterparty risk that contradicts decentralisation principles.