Wrapped Bitcoin (WBTC), as the largest tokenized version of Bitcoin, has now expanded to the Hedera network, a move that is expected to provide Bitcoin holders with more decentralized finance (DeFi) options.
This integration was announced on Thursday and will inject more liquidity into Hedera. Hedera has supported smart contracts and native asset tokenization, promoting itself with low fees, no front-running, and no miner extractable value (MEV) as selling points.
Front-running and MEV refer to the actions of validators profiting by reordering transactions to the detriment of users, and Hedera's consensus mechanism is designed to avoid such issues.
This launch is jointly supported by BitGo (a member of the Hedera council and the main custodian of WBTC), BiT Global, and cross-chain interoperability service provider LayerZero.
WBTC has gained popularity for being the first to enable large-scale Bitcoin participation in DeFi. The wrapping mechanism allows Bitcoin to be converted into tokens on other blockchains, fully backed by Bitcoin held in custody.
In theory, this enables users to deploy their Bitcoin in the smart contract ecosystem for lending, trading, and other protocols without giving up exposure to the underlying Bitcoin.
In the past 12 months, Hedera's DeFi activity has significantly increased, with total locked value rising sharply. Its native token HBAR ranks 19th by market capitalization, with an estimated market value of around $7 billion.
Hedera's move is part of a broader trend to further integrate Bitcoin with DeFi, meeting the demand of holders who wish to activate their assets through lending, trading, and yield protocols.
As previously reported by Cointelegraph, several Bitcoin-focused companies believe that Bitcoin, as a significant asset, should not remain idle in wallets for long periods but will gradually become the cornerstone of its own financial ecosystem.
"Bitcoin DeFi aims to build a trustless, permissionless financial system around Bitcoin, making it an active financial tool rather than just a treasury," said Jacob Phillips, co-founder of Lombard Finance, at the Bitcoin 2025 conference held in Las Vegas.
Additionally, Binance has pointed out the rise of the Bitcoin DeFi sector (i.e., BTCFi), stating that it may drive a new wave of adoption for digital assets.
The growth of the industry "could enhance positive sentiment towards Bitcoin in the medium to long term," Binance Research stated in a report.
Related: Bitfarms' stock plummeted 18% after announcing a gradual shutdown of its Bitcoin (BTC) mining operations.
Original article: “WBTC Expands to Hedera, Injecting Bitcoin (BTC) Liquidity into New DeFi Rails”
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