**Hedera Foundation Partners with BitGo and LayerZero to Launch Wrapped Bitcoin (WBTC) on Its Network**

The Hedera Foundation, in collaboration with BitGo and LayerZero, is launching Wrapped Bitcoin (WBTC) on the Hedera network, opening new avenues for decentralized finance (DeFi). Since its inception in 2019, WBTC has enabled Bitcoin (BTC) holders to participate in DeFi without selling their coins, boasting a market capitalization of $13 billion.

### Introducing WBTC on Hedera

With this integration, Bitcoin investors can now explore DeFi opportunities on Hedera without parting with their BTC. This launch marks a shift from the traditional “hold and wait” model, creating a new frontier for Bitcoin liquidity and allowing it to be deployed in diverse decentralized finance scenarios.

### Collaboration with Leading Industry Partners

The integration of WBTC on Hedera was made possible through a strategic partnership with BitGo, a Hedera Council member. BitGo is a leading provider of digital asset security and custody solutions, renowned for offering institutional-grade infrastructure that includes secure storage, multi-signature wallets, and compliance-ready systems.

Additionally, the project involved BiTGlobalTrust, a custodian and digital asset service provider that bridges traditional finance standards with blockchain technology. LayerZero, a protocol designed for secure and efficient cross-chain communication, also played a vital role by enabling WBTC to bridge seamlessly between other blockchain networks and Hedera.

### Institutional-Grade Benefits for BTC Holders

James Hodgkins, Chief Growth Officer at HBAR, Inc., emphasized that thanks to Hedera’s institutional-grade features, BTC holders can engage in BTCFi (Bitcoin Finance) without concerns about frontrunning or Miner Extractable Value (MEV). This creates a best-in-class experience for institutional investors and large capital allocators.

Hodgkins highlighted that this milestone attests to Hedera’s DeFi evolution and reflects the recognition of the world’s most trusted Bitcoin standard regarding Hedera’s strength and growth potential.

### Hedera’s Advantages for WBTC Deployment

WBTC holds an industry-leading position in the tokenized Bitcoin market—with over 126,000 BTC in custody, a $13 billion market cap, and a 65% market share of tokenized Bitcoin on Ethereum (ETH), making it the benchmark for Bitcoin utility across digital assets.

On Hedera, each WBTC token will be fully backed 1:1 by Bitcoin held securely in BiTGlobalTrust’s custody, underlining strong confidence in Hedera’s enterprise-grade distributed ledger technology (DLT).

The Hedera network offers several unique benefits for WBTC deployment, including:

– **Low, fixed, USD-denominated transaction fees**
– **Near-instant settlement times due to the Hashgraph Consensus algorithm**
– **Asynchronous Byzantine Fault Tolerance (aBFT), which ensures enhanced security and reliability**
– **Transaction finality within 3-5 seconds**, enabling efficient trading, lending, and liquidity provisioning

By hosting WBTC, Hedera also adopts the BitGo standard for tokenization and custody, delivering a secure, transparent, and trustworthy framework suitable for both institutional and retail users.

### HBAR Price Update

Over the past 24 hours, HBAR has declined by 10.5%, currently trading at $0.1604. If it falls below the $0.162 support level, the price may further drop toward $0.150. Conversely, reclaiming the $0.162 level could pave the way for a recovery toward $0.170.

Despite short-term price challenges, institutional interest remains strong. The Canary HBAR ETF has notably acquired $68 million worth of HBAR in just six trading sessions, signaling continued confidence from large investors.

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**Stay tuned for more updates on Hedera’s growing ecosystem and its expanding role in the decentralized finance landscape.**
https://bitcoinethereumnews.com/bitcoin/wrapped-bitcoin-launch-on-hedera-creates-new-yield-and-liquidity-paths-for-btc-holders/