Hedera integrates WBTC to unlock Bitcoin DeFi for users

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Hedera Integrates Wrapped Bitcoin (WBTC) in Major Partnership With BitGo & LayerZero

Hedera just took a major step forward in its DeFi roadmap.
Wrapped Bitcoin (WBTC)—the largest tokenized form of Bitcoin—has officially gone live on the Hedera network, unlocking a new era of institutional-grade BTC liquidity for the HBAR ecosystem.

This move was made possible through a three-way partnership between BitGo, BiT Global, and LayerZero, and is expected to accelerate Hedera’s push into “BTCfi”—the growing segment of Bitcoin-based decentralized finance.

Why This Matters

WBTC is Bitcoin in tokenized form, backed 1:1 by BTC held in BitGo’s institutional custody.
By bringing WBTC to Hedera, BTC holders can now:

  • lend
  • trade
  • provide liquidity
  • participate in DeFi protocols
  • earn yield

—all without leaving the Hedera environment.

Bitcoin is the largest asset in crypto, with massive idle liquidity. WBTC has already helped drive more than $9.6 billion in TVL across DeFi on Ethereum. Now Hedera wants a slice of that.

How the Integration Works

LayerZero’s cross-chain tech powers the integration

LayerZero is providing the interoperability layer that makes this possible, supported by:

  • Stargate Finance
  • SaucerSwap

Together, these platforms ensure WBTC moves seamlessly and securely into the Hedera ecosystem as a canonical, network-recognized asset.

This is not a wrapped-by-third-parties version—this is official WBTC, with BitGo maintaining custody of the underlying BTC.

Why Hedera Says This Is a Milestone

James Hodgkins, Chief Growth Officer at HBAR Inc., explained the impact:

“Because of Hedera’s institutional-grade design, BTC holders can join BTCfi without worrying about frontrunning or MEV. This gives large allocators a best-in-class experience and shows that the world’s most trusted Bitcoin standard recognizes Hedera’s growth potential.”

In other words:
Hedera wants to position itself as the safest, most reliable place for Bitcoin-based DeFi.

The Scale of WBTC

WBTC remains the dominant tokenized Bitcoin asset in crypto:

  • Market cap: nearly $13 billion
  • Supply: over 126,000 BTC held in custody
  • Market share: 65% of all tokenized BTC on Ethereum

Bringing this liquidity source to Hedera is expected to:

  • expand use cases for Bitcoin
  • grow the Hedera DeFi ecosystem
  • attract institutional capital
  • deepen the network’s liquidity pools

What This Unlocks for Hedera Users

With WBTC now live, Hedera users can expect:

1. Deeper Liquidity

Huge pools of Bitcoin can now flow into Hedera’s DeFi protocols.

2. Lower-risk DeFi Participation

Hedera’s MEV-free and high-security environment may appeal to big capital.

3. Cross-chain Bitcoin Use

LayerZero infrastructure ensures smooth movement of assets between chains.

4. Growth of BTCfi on Hedera

New lending markets, yield strategies, liquidity pools, and trading pairs.

The Big Picture

This integration isn’t just another asset listing—it’s Hedera’s strongest move yet toward becoming a major player in Bitcoin-based DeFi. WBTC brings credibility, liquidity, and institutional trust to a network already focused on transparent, enterprise-grade infrastructure.

With WBTC now active on Hedera, the ecosystem is entering a new phase where Bitcoin’s massive liquidity can finally be used natively across Hedera’s growing DeFi tools and platforms.