Bridging the Gap: The Basics of tBTC

Note: This article was originally published in November 2022 at the launch of tBTC V2. It has since been updated with the latest information and developments in September 2026.

Until now, solutions offering to bridge BTC to ETH required users to send their Bitcoin to an intermediary in exchange for Ethereum token representing the original asset. This model creates a point of centralization, requiring users to trust a third party and becoming vulnerable to censorship-all conditions that contradict Bitcoin’s promise of secure, permissionless decentralization.

Threshold Network has found a better way to bridge the gap:

tBTC is a truly decentralized, highly secure, and fully open-source Bitcoin-to-Ethereum bridge that enables people to participate safely in Ethereum Decentralized Finance (DeFi) without the need to sell their BTC. Most DeFi products are built on the Ethereum network, which is increasing in both scale and transaction speeds since the successful Merge event. Most digital assets, however, are held in Bitcoin, which meant users were unable to access the full range of DeFi opportunities without bridging solutions.

Each token is backed one to one by native BTC, so a single tBTC is always redeemable for a single Bitcoin. That means users can now deposit and withdraw BTC in a few clicks, and put these assets to work: earn interest in decentralized lending pools, secure crypto-backed loans, generate revenue from liquidity mining, among others.

This guide covers:

• What tBTC is and how each token stays backed one to one by Bitcoin
• How minting and redemption move Bitcoin onchain and back
• Which network supports tBTC and how it is being used onchain

How Does tBTC Work?

A truly decentralized solution, tBTC v2 replaces centralized intermediaries with a randomly selected group of node operators on the Threshold Network. This group of independent operators works together to secure deposited Bitcoin through threshold cryptography. This means tBTC v2 requires a majority threshold agreement before operators perform any action with your Bitcoin.

By rotating the selection of operators, tBTC v2 protects against any malicious individual or group attempting to seize control. This higher level of defense is particularly important given the increasing number of cross-chain bridge hacks, which have led to the loss of hundreds of millions of dollars. Users on tBTC v2 are protected by the power of math alone, and not by fallible hardware or people.

Best of all, tBTC v2 is open and accessible to anyone.

Read more on Threshold Cryptography.

A Dive into Deposits, Minting, and Redemption

Now we have covered the basics, let’s take a deeper dive into two major functions of tBTC v2.

Deposits

• Stakers periodically create 51-of-100 threshold-ECDSA-backed wallets to hold frozen Bitcoin assets to maintain account balances.
• Depositors send Bitcoin to the most recently created wallet using either pay-to-script-hash (P2SH) or pay-to-witness-script-hash (P2WSH) which contains hashed information about the depositor’s Ethereum address.
• The depositor reveals their P2(W)SH deposit to the Ethereum chain. The Bridge, always on alert for these sorts of messages, then checks the Bitcoin network to make sure the funds line up.
• If everything checks out, the wallet sweeps funds and updates the Ethereum-side account balances.

Minting tBTC

Minting is the step that moves Bitcoin onchain. You start it from the Threshold app, and the network handles the rest. The flow looks like this:

1. Connect your wallet and generate a single-use Bitcoin deposit address in the Threshold app.
2. Send BTC to that address from your Bitcoin wallet.
3. Independent operators on the Threshold Network detect the deposit and coordinate a shared signature to secure it.
4. Once the deposit confirms on Bitcoin, the protocol mints an equal amount of tBTC to the network you chose.

Recent upgrades let users mint directly to supported networks without paying gas on the destination chain, which removes a step that previously required bridging from Ethereum first. The deposit itself is constructed with Bitcoin Script.

Redeeming tBTC

Redemption reverses the process and returns tBTC to native Bitcoin. The one-to-one backing means the amount you redeem always matches the Bitcoin you receive. The flow looks like this:

1. Return your tBTC to the protocol through the Threshold app and provide a Bitcoin address.
2. The protocol reduces the tBTC supply by that amount and instructs an operator wallet to release the matching Bitcoin.
3. Native BTC arrives at the address you supplied, keeping the one-to-one relationship intact.

Note: A larger redemption may be served across more than one wallet, since each operator wallet holds only a portion of the reserves.

Where You Can Use tBTC

tBTC is a multi-chain asset, so the same token can move across a range of ecosystems. It is available on Ethereum and on networks beyond it, which gives Bitcoin holders more places to put their BTC to work. Supported environments include:

• Ethereum
• Layer 2 networks such as Base and Arbitrum
• Non-EVM chains including Solana and Sui

Once minted, tBTC can be supplied to lending markets or used as collateral across those ecosystems, alongside other onchain uses. The token behaves like a standard onchain asset, so it integrates with decentralized applications the same way other tokens do.

See all tBTC opportunities via the Threshold Explorer.

Adoption Milestones

The way tBTC is used has widened as it reached more networks and integrations. A few markers along the way:

• 2023: Decentralized minting launches for Ethereum DeFi, with early integrations across established venues.
• 2025: Native minting arrives on Layer 2 networks including Base and Arbitrum, which removes the earlier step of bridging from Ethereum first.
• June 2025: tBTC launches on Starknet and joins its Bitcoin DeFi season. (announcement)
• July 2025: tBTC goes live on Sui as the first non-EVM chain to support direct minting, with integrations across Sui-native protocols at launch.
• November 2025: Gasless minting and direct redemptions ship in the updated Threshold app. ‍
• August 2026: Total tBTC minted passes 30,000.

Who Maintains tBTC?

tBTC is a product of Threshold Network, a protocol governed by a decentralized autonomous organization of T token holders. Since February 2025, development and growth have been handled by Threshold Labs, following DAO proposals that assigned those responsibilities. Governance decisions, including changes to protocol parameters, are made through the DAO rather than by a private operator.

Learn More: Bitcoin holders who want to explore onchain use without giving up custody can start with the tBTC documentation or the Threshold app. Both walk through how minting and redemption work in practice.