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. 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:
- Generate a deposit address via https://app.threshold.network
- Send BTC to that deposit address.
- Behind the scenes, a decentralized threshold signing process secures and finalizes the mint.
- 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.
tBTC is integrated with leading DeFi protocols (e.g., Aave, Curve, Morpho, Gearbox, Uniswap, Bluefin, Spark, etc.) and institutional partners.