Bitcoin is the most secure and widely held digital asset in the world. However, Bitcoin’s base layer was intentionally designed for settlement and security, not for smart contracts or onchain applications.
As onchain ecosystems have evolved, a key challenge has emerged: how can Bitcoin be used onchain without compromising its security or requiring users to sell their BTC?
Wrapped Bitcoin is the answer, and Threshold Network and tBTC are how it’s done securely.
Why Bitcoin Needs a Path Onchain
Bitcoin does not natively interact with programmable blockchains. This makes it difficult for BTC holders to access onchain financial applications, earn yield, or use Bitcoin as collateral in DeFi.
At the same time, Bitcoin represents the largest pool of value in the crypto space. Bringing Bitcoin onchain allows that value to participate in lending, liquidity, and financial primitives while remaining backed by native BTC.
Wrapped Bitcoin exists to make Bitcoin usable across onchain ecosystems without altering Bitcoin itself.
What Is Wrapped Bitcoin?
Wrapped Bitcoin is a tokenized form of BTC that exists on a smart-contract blockchain. Each wrapped Bitcoin is backed one-to-one by real Bitcoin locked on the Bitcoin network and can always be redeemed for native BTC.
This representation allows Bitcoin to function inside smart contracts. Once wrapped, Bitcoin can be used across onchain applications while maintaining a direct connection to BTC.
How Wrapped Bitcoin Works with Threshold Network
Threshold’s Wrapped Bitcoin, called "tBTC”, eliminates reliance on a single custodian key by replacing it with a rotating, staked network of independent signers that collectively secure BTC using threshold cryptography.
Bitcoin is held in addresses controlled by a distributed set of 100 node operators. Any 51 of these signers can jointly authorize a transaction, while no individual operator or small subset ever possesses the full private key.
At no point does a complete private key exist in one location. Each signer holds only a key share and contributes a partial signature, which is combined with others to produce a single valid transaction signature.
The signer set is selected based on stake and rotated over time, reducing long-lived key exposure and significantly lowering the risk of capture or collusion.
Unlike traditional Bitcoin multisignature schemes, which require multiple keys to be revealed onchain, threshold signatures enable a group to collectively generate a single standard signature without disclosing which participants signed, eliminating single points of failure while remaining compatible across chains.
What is tBTC?
tBTC is Threshold Network’s Bitcoin-backed asset designed for onchain use.
Each tBTC is fully backed by native Bitcoin and secured by Threshold Network’s cryptographic infrastructure, as mentioned above. Minting and redemption are permissionless, allowing Bitcoin holders to move between BTC and tBTC without intermediaries.
tBTC is built to integrate seamlessly with onchain ecosystems, making Bitcoin a composable asset across smart-contract platforms.
Why you should wrap your Bitcoin Onchain using tBTC?
tBTC enables Bitcoin to be used onchain without compromising security or decentralization. By converting BTC into tBTC, holders can access decentralized finance use cases such as lending, liquidity provision, and yield generation, while maintaining full economic exposure to Bitcoin.
Unlike custodial-wrapped Bitcoin solutions, tBTC is trust-minimized and secured by the Threshold Network’s distributed signer architecture. Bitcoin backing tBTC is controlled by independent signers using threshold cryptography, ensuring that no single party ever holds or controls the full private key.
tBTC has operated continuously for over five years without a security incident, demonstrating a strong track record and long-term reliability. This architecture eliminates single points of failure and preserves Bitcoin’s security model, making tBTC a secure and proven approach for bringing Bitcoin onchain and extending its utility across decentralized finance.
How to Bridge tBTC (Wrapped Bitcoin) to Ethereum
To use Bitcoin on Ethereum, BTC is locked on the Bitcoin network, and tBTC is minted on Ethereum through Threshold Network’s infrastructure.
Once on Ethereum, tBTC can interact with smart contracts, enabling Bitcoin onchain use cases such as lending, liquidity provision, and yield strategies.
- BTC (Bitcoin) to tBTC (Ethereum): https://app.threshold.network
- tBTC Ethereum to other networks:https://portalbridge.com/?fromChain=Ethereum&toChain=Solana&fromToken=tBTC
How to Bridge tBTC (Wrapped Bitcoin) to Polygon, Optimism, Solana, Base, & Arbitrum
Polygon extends Ethereum-compatible execution with faster settlement and lower fees. Bitcoin can reach Polygon by minting tBTC and bridging it into the Polygon ecosystem.
This allows Bitcoin to participate in onchain activity on Polygon while remaining backed by BTC on Bitcoin.
- BTC (Bitcoin) to tBTC (Other Networks): https://app.threshold.network
- tBTC Polygon to other Networks: https://portalbridge.com/?fromChain=Polygon&fromToken=tBTC
- tBTC Optimism to Other Networks:https://portalbridge.com/?fromChain=Optimism&fromToken=tBTC
- tBTC Base to Other Networks: https://portalbridge.com/?fromChain=Base&toChain=Solana&toToken=tBTC
- tBTC Solana to Other Networks:https://portalbridge.com/?fromChain=Solana&fromToken=tBTC
- tBTC Arbitrum to Other Networks:https://portalbridge.com/?fromChain=Arbitrum&fromToken=tBTC
How to Bridge Bitcoin to Starknet with tBTC
Starknet introduces scalable execution using zero-knowledge proofs. Bitcoin can be brought into Starknet by minting tBTC and bridging it into Starknet’s environment.
This enables Bitcoin liquidity to interact with high-performance onchain applications while remaining secured by Threshold Network.
- BTC (Bitcoin) to tBTC (Starknet):https://app.threshold.network
- tBTC Starknet to Other Networks (and vice versa): https://starkgate.starknet.io/ethereum/bridge?mode=withdraw&token=tbtc
How to Bridge Bitcoin to Sui with tBTC
Sui’s object-based execution model enables new onchain design patterns. Bitcoin can be represented on Sui by minting tBTC and bridging it into the Sui ecosystem. Through tBTC, Bitcoin can participate in emerging onchain architectures while staying fully backed by native BTC.
- BTC (Bitcoin) to tBTC (Sui): https://app.threshold.network
- tBTC Sui to Ethereum (& vice versa): https://sui.threshold.network/
Bitcoin’s Onchain Future Starts with tBTC
Wrapped Bitcoin is not about changing Bitcoin; it’s about expanding where Bitcoin can be used.Bitcoin was built to be secure, resilient, and independent. Those properties made it the foundation of the digital asset ecosystem, but they also limited how Bitcoin could be used in onchain applications. tBTC extends Bitcoin’s reach without compromising its core values, allowing Bitcoin to remain native, verifiable, and fully backed while becoming usable across modern onchain environments.
With Threshold Network and tBTC, Bitcoin is no longer confined to passive holding. It can power lending markets, provide liquidity, and support onchain financial applications across ecosystems. As onchain finance continues to evolve, the role of Bitcoin is evolving with it. tBTC provides a secure, cryptographic path for Bitcoin to participate in this future, one that aligns with Bitcoin’s security model and extends its utility beyond a single chain.
Bitcoin’s next chapter is onchain. tBTC is how it gets there.
Learn more about tBTC, bridging Bitcoin onchain, and Threshold Network at threshold.network.