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Bitcoin News Update: Decentralized tBTC Bridge Competes with Centralized Alternatives in the Battle for Bitcoin Liquidity

Bitcoin News Update: Decentralized tBTC Bridge Competes with Centralized Alternatives in the Battle for Bitcoin Liquidity

Bitget-RWA2025/11/14 00:50
By:Bitget-RWA

- Threshold Network upgrades tBTC bridge to unlock $500B institutional Bitcoin liquidity for DeFi, enabling single-transaction minting to Ethereum , Arbitrum, and Base without gas fees. - Competitors like WBTC ($13B market cap) expand to Hedera , leveraging institutional-grade security and MEV-resistant infrastructure to challenge Threshold's decentralized model. - Threshold's 51-of-100 threshold signing model eliminates custodial risks, contrasting with WBTC/renBTC's centralized custodians and attracting

Threshold Network has rolled out a significant update to its tBTC bridge, targeting the release of $500 billion in institutional

liquidity for decentralized finance (DeFi) platforms. This upgrade enables institutions to mint tBTC straight onto supported blockchains—including , , and Base—in a single step, removing the need for gas fees and extra approval steps. Rizza Carla Ramos, Threshold’s marketing lead, highlighted the transition from simply holding Bitcoin to engaging in DeFi, remarking, "You want your assets to generate profit for you," during a Web Summit interview in Lisbon . The new system uses a 51-of-100 signing approach, ensuring that no single party has control over the bridge, which reduces custodial risk.

This development arrives as rivals such as

(WBTC) and renBTC continue to grow their influence. , the leading tokenized Bitcoin product with a $13 billion market cap, revealed its launch on on Thursday, expanding beyond Ethereum. Hedera’s enterprise-grade network, which is designed to prevent frontrunning and miner-extractable value (MEV), stands out as a major advantage. , partnered with and BiT Global to support cross-chain compatibility. "Bitcoin must be able to move without restriction to achieve its true potential," stated Simon Baksys, LayerZero’s vice president of business development .

Bitcoin News Update: Decentralized tBTC Bridge Competes with Centralized Alternatives in the Battle for Bitcoin Liquidity image 0
Since its debut in 2019, Threshold’s tBTC bridge has handled $4.2 billion in total volume, though this is still behind WBTC’s $13 billion in trading activity. Unlike WBTC and renBTC, which depend on centralized custodians, Threshold’s decentralized framework is designed to attract institutions that value transparency. can boost liquidity in DeFi pools and lending markets, providing "sustainable yields" for BTC investors.

With WBTC now available on Hedera, DeFi adoption is expected to accelerate thanks to lower transaction costs and robust, institutional-level security. James Hodgkins, chief growth officer at HBAR, Inc., noted that this integration lets "idle Bitcoin liquidity" enter DeFi without facing MEV or frontrunning risks

. Experts suggest that spreading tokenized BTC across various blockchains could transform Bitcoin’s function in the global financial system, connecting traditional and decentralized markets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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