Crypto infrastructure platform Threshold has upgraded its tBTC bridge to make it easier for institutional Bitcoin holders to move funds into Bitcoin DeFi. The project refers to the roughly $500 billion in Bitcoin held by institutions and whales as a key target for the bridge.
Threshold announced the tBTC bridge upgrade during Web Summit in Lisbon, presenting it as a tool for bringing more Bitcoin liquidity onchain. The new version lets institutions mint tBTC directly to supported networks using a single Bitcoin (BTC) transaction.
According to Threshold, the updated tBTC bridge process does not require secondary approvals and does not add gas fees on the Bitcoin side. The team adds that redemptions back to the Bitcoin network follow the same direct route, which keeps the flow between Bitcoin and Bitcoin DeFi protocols straightforward.
How the tBTC bridge moves Bitcoin into DeFi chains
The tBTC bridge issues tBTC as a tokenized Bitcoin representation on smart contract networks. Threshold says each tBTC is backed 1:1 by Bitcoin on the main chain and secured through a threshold rule that requires 51 of 100 node operators to sign a transaction.
This threshold signature design spreads control over many independent Bitcoin node operators instead of a single custodian. Threshold states that this structure is meant to reduce single-point custodian risk while still keeping Bitcoin as the base collateral behind tBTC.
Through the tBTC bridge, institutional Bitcoin and large whale holdings can move to networks such as Ethereum, Arbitrum, Base, Polygon and Sui. Once on those chains as tBTC, the tokenized Bitcoin can enter Bitcoin DeFi protocols, including decentralized exchanges and lending markets.
Threshold reports more than $4.2 billion in cumulative volume across the tBTC bridge since its launch about five years ago. That figure includes flows from both retail and institutional users and shows how much value has already moved as tokenized Bitcoin through the tBTC bridge.
The project also argues that routing more Bitcoin liquidity into Bitcoin DeFi pools and collateral vaults could support deeper markets. Threshold says that as more tBTC enters those systems, decentralized exchanges and lending protocols can integrate institutional Bitcoin exposure alongside existing crypto assets.
tBTC, Wrapped Bitcoin and tokenized Bitcoin competition
The tBTC bridge operates in a market already shaped by other tokenized Bitcoin products, mainly Wrapped Bitcoin (WBTC) and renBTC (RENBTC). Both WBTC and renBTC have recorded higher trading volumes than tBTC and are widely used in Bitcoin DeFi strategies.
However, WBTC and renBTC rely on more centralized structures. In those systems, a defined custodian or small group of entities holds the underlying institutional Bitcoin or retail Bitcoin and issues wrapped tokens against that reserve. Threshold positions the tBTC bridge as a more distributed alternative through its 51-of-100 node operator requirement.
On Thursday, the team behind Wrapped Bitcoin (WBTC) expanded WBTC to the Hedera network. That step adds another venue for tokenized Bitcoin and Bitcoin liquidity, as WBTC can now circulate on Hedera alongside other chains where it already trades.
With the tBTC bridge upgrade from Threshold and the WBTC expansion to Hedera, the market for tokenized Bitcoin is seeing parallel developments. Each project presents its own model for moving institutional Bitcoin and whale holdings into Bitcoin DeFi, shaping how Bitcoin interacts with smart contract ecosystems and onchain Bitcoin liquidity.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: November 14, 2025 • 🕓 Last updated: November 14, 2025
