FAQ

tBTC is a 1:1 Bitcoin-backed, decentralized wrapped Bitcoin secured by threshold cryptography. It preserves Bitcoin’s ethos of trust minimization and decentralization by eliminating reliance on a single centralized custodian.

tBTC uses a supply peg rather than a price peg. There is no algorithmic mechanism enforcing parity; instead, the peg is maintained by 1:1 BTC reserves verifiable onchain.

tBTC is trust-minimized. It avoids synthetic collateral models and a single centralized custodian, ensuring there is no single point of failure.

Yes, Threshold Network operates under the Threshold Foundation, a foundation company registered in the Cayman Islands. In February 2025, the Threshold token-holder DAO approved Threshold Improvement Proposal 100, assigning responsibility for protocol development, product strategy, and ecosystem growth to T Network Labs LLC, a limited liability company registered in Wyoming.

Yes. tBTC has undergone multiple audits and is covered by Immunefi’s bug bounty program. The v2 design strengthens security and efficiency with threshold cryptography, rotating signer groups, forward security, and onchain proofs of reserves. You can check the audit reports here: https://docs.threshold.network/resources/security-audits

Threshold’s design minimizes risk by depending on an honest majority of node operators, yet certain risks may persist, including smart contract bugs, protocol-level gaps, or misconfigurations. However, it is important to note that the protocol imposes high security measures to mitigate risks, hence it has never been compromised since launching in 2020.

You can see the full minting and redeeming process flowchart via https://docs.threshold.network/applications/tbtc-v2

Otherwise, here’s a quick run-down:

1. Generate a deposit address via https://app.threshold.network
2. Send BTC to that deposit address.
3. Behind the scenes, a decentralized threshold signing process secures and finalizes the mint.
4. Receive your tBTC.

Minting typically takes 1-2 hours due to decentralized signing and Bitcoin confirmation times.

When minting, the destination wallet must match the network (e.g., ERC-20 wallet for Ethereum). Multisigs are supported as long as they’re on the correct network.

When redeeming, the destination must always be a Bitcoin Native wallet you control. CEX-generated Bitcoin wallets are not supported since you do not control them.

This depends on your local jurisdiction. Users should consult a tax professional.

No. tBTC holders do not have direct governance rights. Governance is managed via the T token and the DAO structure.

Yes. Threshold supports faster redemptions, policy-aligned integrations, and scalable liquidity rails for institutional adoption. The recently announced Verifiable Bitcoin Accounts also caters to institutional Bitcoin holders.

Read the full scope of Verifiable Bitcoin Accounts on our blog announcement: https://threshold.network/blog/verifiable-bitcoin-accounts

tBTC is integrated with leading DeFi protocols (e.g., Aave, Curve, Morpho, Yield Basis, Gearbox, Uniswap, Bluefin etc.) and institutional partners.

Verifiable Bitcoin Accounts (VBA) is a new framework for institutional Bitcoin deployment built on Threshold Network's signer infrastructure. VBA lets allocators access onchain lending and yield markets while their Bitcoin remains in the custody they already maintain, with spending conditions, multi-party controls, and recovery paths written in Bitcoin Script and enforced by the Bitcoin network itself.

Every Verifiable Bitcoin Account is built on top of Bitcoin's native PSBT, the Partially Signed Bitcoin Transaction Standard (BIP-174). It enables:

• Consensus-enforced spending. Spending conditions, recovery paths, and timelocks are written in Bitcoin Script and enforced by the same consensus mechanism that secures the Bitcoin network. Every permissible outcome is pre-defined. Every state is verifiable onchain by any full node.
• Multi-party controls. No single entity holds unilateral authority over deployed capital. Not the custodian, not Threshold, not the depositor. Every movement requires the predefined combination of parties specified for that position.
• Predefined recovery. If the signer network is unavailable, the depositor recovers the BTC themselves after a defined timelock. No counterparty cooperation is required. The Bitcoin UTXO is the system of record.
• Whitelisted deployment. Capital deploys only into risk-assessed, pre-approved onchain lending and yield markets such as Aave, Morpho, Curve, and Yield Basis. Every movement is constrained, auditable, and aligned with institutional compliance requirements.

Read the full scope of Verifiable Bitcoin Accounts on our blog announcement: https://threshold.network/blog/verifiable-bitcoin-accounts

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Ask our institutional coverage team about the VBA architecture, legal structure, or integration specifics for your use case by signing up at https://threshold.network/contact