What is tBTC?

tBTC is a bitcoin-backed token created by Threshold Network that lets people use the value of their BTC on other blockchains such as Ethereum. Each tBTC is minted when real bitcoin is deposited and burned when it is redeemed. Its main difference from older wrapped tokens is that no single company holds the reserve.

What is tBTC crypto?

tBTC is a type of wrapped token. Threshold describes it as a decentralized, trust-minimized bridge between bitcoin and DeFi, the lending and trading apps that run on smart contract chains.

The process works like this. A user sends BTC to a deposit address on the Bitcoin network, and the same amount of tBTC is minted on the chosen chain. To exit, the user returns tBTC, which is burned, and BTC is released back on Bitcoin. Threshold's December 2025 post lists Ethereum, Arbitrum, Base, Optimism, Polygon, Solana, Starknet and Sui as supported chains.

As of October 2026, Threshold's docs list a 0.2% fee to mint and to redeem. The mint fee was reinstated on April 15, 2026 after a governance decision. Staking the network's T token can reduce or waive those fees.

What is Threshold tBTC?

Threshold Network was formed through the merger of two projects, Keep Network and NuCypher. Coinbase's protocol guide calls it the first merger of two decentralized protocols. Its T token is used for governance and for staking by node operators.

The first version of tBTC came from Keep. The Block reported that it went live in May 2020, paused deposits after a bug was found in the redemption flow, and relaunched on September 22, 2020. Threshold launched the current version on January 31, 2023, initially with a permissioned group of minters and guardians who could check and cancel suspicious mints.

What is the difference between tBTC and WBTC?

Both are tokens meant to track bitcoin one for one. The difference is who controls the reserve. As the guide to wrapped bitcoin explains, WBTC relies on a custodian holding the BTC.

tBTC splits that control. Threshold's docs say each wallet has 100 signers, and a randomly chosen group of 51 must work together to sign any transaction using threshold cryptography. Operators are selected based on stake and rotated, so no single party holds the full private key.

This reduces reliance on one company but does not remove risk. Users still depend on the honesty of a majority of signers, on smart contracts working as written and on the bridge software. Threshold says the system has run for over five years without a security incident.

What does tBTC stand for?

Threshold's documentation does not formally spell out the name. "BTC" refers to bitcoin. The "t" is linked to the project's origins: The Block described the original effort as an attempt to build a trustless bitcoin-to-Ethereum bridge, and the token is now run by Threshold Network using threshold signatures.