WBTC Launches on Hedera, Bridging Bitcoin and HBAR for Enhanced DeFi

The cryptocurrency world has witnessed a groundbreaking development with the launch of Wrapped Bitcoin (WBTC) on the Hedera network, announced on November 13, 2025. This strategic integration bridges the Bitcoin and Hedera ecosystems, enabling Bitcoin holders to participate in Hedera's decentralized finance (DeFi) applications without selling their original BTC assets. The collaboration involves key industry players, including BitGo as the primary custodian for the Bitcoin backing WBTC, ensuring full collateralization and security, while BiT Global and LayerZero provided the technical infrastructure for seamless cross-chain interoperability.

The integration unlocks significant benefits, such as enhanced liquidity by bringing Bitcoin's substantial market capitalization into Hedera's DeFi ecosystem, which has seen a notable increase in total value locked over the past year. Users can now access lower transaction costs and faster transaction times compared to Ethereum, with Hedera offering near-instant finality and avoiding issues like frontrunning and miner-extractable value (MEV). This opens up opportunities for Bitcoin-collateralized lending, cross-chain decentralized exchanges, and yield farming strategies on Hedera.

This move is part of a broader trend toward Bitcoin DeFi (BTCFi), as highlighted by industry comments, including from Binance Research, which noted it could reinforce positive sentiment for Bitcoin in the medium to long term. By integrating the world's largest cryptocurrency, Hedera strengthens its position as a high-performance, enterprise-grade blockchain, potentially driving further adoption and innovation across both ecosystems.