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Threshold Network has launched tBTC on Starknet, enabling Bitcoin holders to engage in multi-chain DeFi with ultra-low transaction fees and full custody control.
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This integration allows users to mint native Bitcoin on Starknet directly, facilitating seamless trading, borrowing, and complex DeFi strategies at just $0.01 per transaction.
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According to MacLane Wilkison, Co-Founder of Threshold Labs, “Bitcoin becomes more than a store of value — it can now be used for small to large-scale trades, executed hundreds of times a day, and as a source of capital to lend or even borrow against.”
Threshold Network’s tBTC launch on Starknet revolutionizes Bitcoin DeFi by offering near-zero fees, instant transactions, and trust-minimized custody for scalable multi-chain applications.
tBTC on Starknet: Unlocking Bitcoin’s Potential in Scalable DeFi Ecosystems
The launch of tBTC on Starknet marks a pivotal advancement in Bitcoin’s DeFi integration, addressing long-standing challenges related to high fees and slow confirmation times on the Bitcoin mainnet. By leveraging Starknet’s zero-knowledge rollup technology, tBTC enables Bitcoin holders to mint a fully backed, 1:1 representation of BTC directly on Starknet without intermediaries. This innovation drastically reduces transaction costs from an average of $1.49 on Bitcoin’s mainnet to just $0.01, while delivering near-instant confirmation times. The result is a highly scalable environment where Bitcoin can be actively used as working capital, facilitating trading, lending, and complex financial strategies that were previously uneconomical.
Economic Transformation: From Gold Bars to Fluid Capital
Bitcoin’s traditional role as a store of value has been limited by its network constraints, where transaction fees and confirmation delays hinder active DeFi participation. With Starknet’s throughput of up to 857 transactions per second and STARK cryptography ensuring robust security, tBTC transforms Bitcoin into a liquid asset suitable for frequent and diverse DeFi operations. Users can now execute trades, provide liquidity, and borrow against their Bitcoin holdings with minimal overhead, enabling new use cases such as streaming payments, automated strategies, and Bitcoin-powered gaming. This shift not only enhances Bitcoin’s utility but also expands the DeFi ecosystem by integrating the largest cryptocurrency into scalable, composable protocols.
Expanding Use Cases and Strategic Integrations for tBTC on Starknet
Threshold Network is actively collaborating with Starknet’s leading protocols to broaden tBTC’s functionality. At launch, users can trade tBTC on Ekubo, a native Starknet decentralized exchange that offers deep liquidity and low slippage for Bitcoin pairs. Soon, lending capabilities will be introduced through Vesu, allowing users to borrow against tBTC without relinquishing custody, mirroring successful models on Ethereum. Future developments include perpetual contracts, collateralized debt positions (CDPs), and yield vaults, which will further empower Bitcoin holders to leverage their assets in sophisticated DeFi strategies. Additionally, partnerships with oracle providers and liquidity networks will ensure accurate pricing and efficient capital deployment, reinforcing tBTC’s role as a foundational asset in the multi-chain DeFi landscape.
Security and Sovereignty: Trust-Minimized Custody with Threshold Cryptography
Unlike traditional wrapped Bitcoin solutions that rely on centralized custodians, tBTC employs a threshold cryptography model secured by multiple independent nodes. This decentralized approach eliminates single points of failure and preserves user sovereignty, as no single entity controls the underlying Bitcoin deposits. The integration with Starknet’s zero-knowledge proofs further enhances security by compressing thousands of transactions into succinct proofs without sacrificing Ethereum-level guarantees. This combination of cryptographic rigor and decentralized custody ensures that users can confidently engage in DeFi activities without compromising control over their assets or exposing themselves to counterparty risk.
Market Impact and Future Outlook for Bitcoin DeFi
Despite Bitcoin’s dominant market capitalization exceeding $2 trillion, its participation in DeFi remains marginal, with less than 0.3% of supply locked in decentralized protocols. The introduction of tBTC on Starknet addresses critical barriers by offering a scalable, low-cost infrastructure that can support a 10 to 15-fold increase in Bitcoin’s DeFi utilization. As transaction fees plummet and user experience improves, Bitcoin holders are poised to transition from passive holders to active participants in decentralized finance. This evolution aligns with broader trends toward multi-chain interoperability and composability, positioning tBTC as a key enabler of Bitcoin’s expanded role across emerging DeFi ecosystems.
Conclusion
The deployment of tBTC on Starknet represents a significant milestone in integrating Bitcoin into scalable DeFi environments. By combining ultra-low fees, instant transaction finality, and trust-minimized custody, this initiative unlocks new financial opportunities for Bitcoin holders and developers alike. As Threshold Network and Starknet continue to expand integrations and enhance protocol capabilities, Bitcoin’s utility within DeFi is set to increase substantially, fostering innovation and broadening access to decentralized financial services. Users interested in leveraging Bitcoin’s value in DeFi are encouraged to explore tBTC on Starknet and participate in this transformative multi-chain ecosystem.
