Bitcoin holders looking to put their assets to work got a major boost this week. Wrapped Bitcoin, which lets people use their BTC across different blockchain platforms, is now available on Hedera—a network that’s been gaining traction for cheap fees and lightning-fast transactions. The move boosts Hedera’s DeFi growth and accelerates the rise of the “BTCFi” (Bitcoin on DeFi) ecosystem.
Major Players Back Integration
BitGo, BiT Global, and LayerZero partnered to facilitate the Thursday launch, which marks a strategic expansion for the world’s leading cryptocurrency into institutional-grade blockchain infrastructure. BitGo maintains custody of the actual Bitcoin reserves backing each WBTC token at a 1:1 ratio, while LayerZero’s technology enables seamless transfers between different blockchain networks.
This integration addresses concerns about people cheating on trades. Hedera’s system stops frontrunning and miner profits—tricks where the people who check transactions rearrange them to make money and hurt regular users.
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Growing DeFi Momentum
Hedera has recorded substantial growth in total value locked over the past year. Its native HBAR token currently ranks as the 20th-largest cryptocurrency, with a market capitalization of approximately $6.8 billion.
Industry experts view Bitcoin’s expanding presence in DeFi as transformative. Jacob Phillips of Lombard Finance emphasized at the Bitcoin 2025 Las Vegas conference that the movement aims to transform Bitcoin from a store of value into an active financial instrument. Binance Research suggests this “BTCFi” sector could drive broader adoption and reinforce positive long-term sentiment.
