What is WBTC (Wrapped Bitcoin)?
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🟢 The simple version
Plain English — no jargon. Start here.
WBTC (Wrapped Bitcoin) is an ERC-20 token on Ethereum where 1 WBTC always equals 1 BTC — it's Bitcoin made usable in Ethereum DeFi — with a centralised custodian (currently BiT Global, connected to Justin Sun) holding the underlying BTC.
Bitcoin in DeFi
Bitcoin cannot natively interact with Ethereum smart contracts. WBTC solves this: you send BTC to a custodian (BitGo/BiT Global), they mint an equivalent amount of WBTC on Ethereum. Now your BTC value can be used as Aave collateral, Curve LP, or in any Ethereum DeFi protocol. In 2024, BitGo controversially transferred custody to BiT Global (associated with Justin Sun of TRON), causing significant community concern and fuelling adoption of alternatives like cbBTC (Coinbase) and tBTC (Threshold, decentralised).
Is WBTC legal in India?
Yes. WBTC is a VDA. 30% tax and 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
WBTC vs cbBTC vs tBTC
WBTC: most liquid (~$15B+), centralised custodian (BiT Global/Justin Sun controversy). cbBTC: Coinbase custody (US-regulated, KYC, Coinbase trust risk). tBTC: decentralised (Threshold ECDSA, no single custodian), least liquid. The 2024 custodian transfer debate accelerated growth of both cbBTC and tBTC as alternatives.
🟣 The full technical picture
For the technically curious.
Key facts
- Ratio: 1 WBTC = 1 BTC always
- Custodian: BiT Global (from 2024, controversy with Justin Sun)
- Alternatives: cbBTC (Coinbase), tBTC (decentralised)