Wrapped Bitcoin (WBTC) is currently trading at $108,795.18**, with a 24-hour trading volume of **$15,328,187. Over the past day, WBTC has declined by 0.54%, yet it has gained 1.66% over the last seven days. The current market capitalization stands at $14,036,563,244, based on a circulating supply of 129,018 WBTC tokens. WBTC ranks #12 among all cryptocurrencies by market cap.
WBTC is currently trading 32.92% below its all-time high and 3,167.01% above its all-time low. All data is updated in real time to reflect the latest market movements.
👉 Discover how WBTC integrates with top DeFi platforms for seamless asset transfers.
What Is Wrapped Bitcoin (WBTC)?
Wrapped Bitcoin (WBTC) is an ERC-20 token that represents Bitcoin on the Ethereum blockchain. As an ERC-20 compliant asset, WBTC enables Bitcoin to be used within Ethereum’s decentralized finance (DeFi) ecosystem, including lending protocols, decentralized exchanges (DEXs), and yield-generating applications.
Each WBTC token is backed 1:1 by actual Bitcoin held in reserve. This means that for every WBTC token issued, an equivalent amount of BTC is securely stored by custodians. This mechanism ensures WBTC maintains a stable peg to Bitcoin’s value and facilitates trustless, decentralized liquidity transfers between the Bitcoin and Ethereum networks.
The minting and burning of WBTC tokens occur automatically when users convert between BTC and WBTC through a network of merchants and custodians. The total supply of WBTC in circulation directly reflects the amount of Bitcoin locked in reserves.
Note: Due to Bitcoin’s inherent price volatility, WBTC also experiences price fluctuations influenced by broader crypto market dynamics. Before converting BTC to WBTC, it's advisable to analyze the WBTC price chart to understand current volatility trends.
Key Companies Behind Wrapped Bitcoin
Wrapped Bitcoin was launched through a collaboration between three major blockchain entities: Ren, BitGo, and Kyber Network.
- Ren specializes in cross-chain interoperability, enabling crypto assets and DeFi applications to function across multiple blockchains. Ren plays a critical role in maintaining the 1:1 parity between BTC and WBTC by minting new tokens and burning old ones as needed.
- BitGo serves as the custodian for all Bitcoin reserves backing WBTC. As a leading provider of institutional digital asset services, BitGo handles custody, trading, and financial solutions. It also holds the private keys required for WBTC issuance, ensuring secure and auditable reserve management.
- Kyber Network is an on-chain liquidity protocol that enables seamless token swaps without intermediaries. Like Ren, Kyber participates in the minting and burning process of WBTC tokens, supporting smooth conversions between BTC and WBTC.
Together, these organizations form a robust infrastructure that ensures transparency, security, and decentralization across the WBTC ecosystem.
👉 Learn how institutional-grade custody powers secure tokenized assets like WBTC.
Core Benefits of Wrapped Bitcoin
While Bitcoin remains the most recognized cryptocurrency, its functionality is relatively limited compared to modern blockchain platforms. Ethereum, by contrast, supports advanced features through smart contracts, enabling complex financial operations such as automated lending, staking, and algorithmic trading.
WBTC bridges this gap by bringing Bitcoin’s value into Ethereum’s rich DeFi environment. Here are the primary advantages:
1. Access to DeFi Ecosystem
WBTC allows Bitcoin holders to participate in Ethereum-based DeFi protocols without selling their BTC. Users can lend WBTC on platforms like Aave or Compound to earn interest or use it as collateral for borrowing other assets.
2. Faster Transaction Speeds
Bitcoin’s average block time is approximately 10 minutes, while Ethereum blocks are confirmed every 12–15 seconds. By using WBTC, users benefit from significantly faster transaction finality compared to native BTC transfers.
3. Enhanced Liquidity for Ethereum
WBTC introduces substantial liquidity from the Bitcoin market into Ethereum’s ecosystem. This influx supports deeper markets on decentralized exchanges and improves price stability across trading pairs.
4. Simplified Integration for Wallets and Exchanges
Platforms built on Ethereum can support WBTC using standard ERC-20 tooling. This eliminates the need to run separate nodes for both Bitcoin and Ethereum networks—developers only require an Ethereum node to manage WBTC activity.
For real-time insights into price movements, refer to the live WBTC price chart above.
Key Participants in the WBTC Ecosystem
The Wrapped Bitcoin system operates through four main roles:
- Custodians: Responsible for holding the underlying Bitcoin reserves. BitGo acts as the primary custodian, ensuring that every WBTC token is fully backed.
- Merchants: Entities like Kyber Network and Ren that facilitate the conversion between BTC and WBTC. They initiate minting or burning requests based on user actions.
- Users: Individuals or institutions holding or transacting with WBTC tokens within DeFi applications or on exchanges.
- WBTC DAO Members: The Decentralized Autonomous Organization (DAO) governs the WBTC protocol. It oversees critical decisions such as updating smart contracts, adding or removing merchants, and changing custodial arrangements.
The WBTC DAO uses multi-signature (multi-sig) smart contracts to ensure decentralized governance. Any proposed change requires consensus from all participating members before execution, enhancing security and trustlessness.
How to Convert BTC to WBTC (and Vice Versa)
Converting between Bitcoin and Wrapped Bitcoin is straightforward:
BTC to WBTC Conversion
- Visit a participating merchant such as Kyber Network or another partner listed on the WBTC website.
- Transfer your BTC to the merchant’s designated address.
- The merchant notifies BitGo (the custodian) of the incoming deposit.
- After 6 Bitcoin network confirmations, BitGo mints an equivalent amount of WBTC.
- The newly minted WBTC is sent to your Ethereum wallet.
WBTC to BTC Redemption
- Contact a merchant to initiate a burn request for your WBTC.
- The merchant submits a burning instruction to BitGo.
- After 25 Ethereum block confirmations, BitGo releases the corresponding BTC to the merchant’s Bitcoin address.
- Once you complete Know Your Customer (KYC) verification with the merchant, they send the BTC to your personal Bitcoin wallet.
This two-way peg ensures full convertibility while maintaining security and auditability.
👉 See how cross-chain bridges enable seamless BTC-to-WBTC conversion today.
Frequently Asked Questions (FAQ)
Q: Is WBTC backed 1:1 by real Bitcoin?
A: Yes. Every WBTC token is fully backed by one Bitcoin held in secure custody by BitGo, ensuring a direct 1:1 value parity.
Q: Can I earn interest on WBTC?
A: Absolutely. You can deposit WBTC into DeFi lending platforms like Aave or Compound to earn yield through interest payments.
Q: How does WBTC differ from native Bitcoin?
A: While both represent the same value, WBTC is an ERC-20 token compatible with Ethereum’s ecosystem, enabling faster transactions and DeFi integration not possible with standard BTC.
Q: Who controls the WBTC supply?
A: The supply is managed collectively by merchants and custodians under governance by the WBTC DAO, ensuring transparency and decentralization.
Q: Is converting BTC to WBTC safe?
A: Yes—conversions occur through audited smart contracts and trusted custodians. However, always use official partners and verify addresses carefully.
Q: Does WBTC have lower fees than Bitcoin?
A: Transaction fees depend on Ethereum network congestion. While gas fees can be high during peak times, overall processing is faster than traditional BTC transfers.
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