Wrapped Bitcoin
activeWBTC
wrapped
Launched
2019-01-31
Wrapped Bitcoin (WBTC) is an ERC-20 token backed 1:1 by Bitcoin held in custody by BitGo. It brings Bitcoin's liquidity to the Ethereum ecosystem.
Contract Addresses
Wrapping Mechanism
Type
centralised custody
Decentralization
Level 2/5
Description
BitGo holds Bitcoin in cold storage and mints WBTC on Ethereum at a 1:1 ratio
Technical Summary
Users send BTC to BitGo's custodial address. BitGo mints equivalent WBTC on Ethereum. Redemption requires merchant approval and KYC.
Trust Assumptions
- BitGo must maintain proper custody of underlying BTC
- Merchants act as authorized minting/burning agents
- Users must trust BitGo's proof of reserves
MiCA Classification
UnresolvedESMA has not issued definitive guidance on whether wrapped Bitcoin qualifies as an Asset-Referenced Token (ART) under MiCA. The classification genuinely unresolved. Key analysis: WBTC references only a single asset (Bitcoin), not multiple assets as required by MiCA Article 2 for ART definition. However, ESMA confirmation pending. Payment use in DeFi contexts and stabilization mechanism create regulatory uncertainty. This is a flagship example of genuinely unresolved MiCA classification.
ART Criteria Analysis
Proof of Reserves
Methodology
third party audit
Frequency
monthly
Auditor
ChainProof (previously independent attestations)
Limitations
- Attestations are not full audits
- Custody relies on BitGo's security practices
- Limited transparency on merchant operations
Custodian
BitGo Trust Company
centralised custody
Quick Links
Disclaimer
Regulatory status information is for educational purposes only. Always verify current regulations with official sources before making decisions. Not financial or legal advice.