Wrapped Bitcoin (WBTC) in 2025: Still Worth Using in DeFi?

Introduction

Is Wrapped Bitcoin (WBTC) still worth using in decentralized finance (DeFi) in 2025? Bitcoin has long been valued as digital gold, but on its own blockchain it can’t directly participate in Ethereum’s rich DeFi ecosystem. WBTC – an ERC-20 token backed 1:1 by Bitcoin – was created as a bridge between Bitcoin and Ethereum back in 2019 In the DeFi boom of 2020–2021, WBTC surged in popularity, reaching a peak of over 285,000 BTC tokenized as WBTC by May 2022. After some pullback during the bear market (the circulating WBTC supply dipped to ~130k by mid-2025), we’re again seeing a resurgence in wrapped Bitcoin usage. Daily WBTC transactions have doubled in early 2025 (from ~6,800 on Jan 1 to ~12,500 by April) as Bitcoin holders pour into DeFi. Over 68% of all WBTC is now locked in DeFi platforms like Aave, Compound, and MakerDAO – a clear sign that many are finding renewed utility in wrapping BTC for yield and lending opportunities.

But does that mean you should use WBTC for your BTC in 2025? In this article, we’ll explore what WBTC is, why it exists, and weigh the pros and cons. We’ll compare WBTC vs. native BTC for security, liquidity, and utility. By the end, you’ll know when it makes sense to convert BTC to WBTC – and when you’re better off keeping your Bitcoin as is. We’ll also discuss how to wrap and unwrap BTC safely, including using bridges like TeleSwap (a decentralized BTC–WBTC bridge) to minimize fees and risks.

Let’s dive in and answer the core question: Is WBTC still worth using in 2025 for DeFi?

What Is WBTC (and Why Does It Exist)

Wrapped Bitcoin (WBTC) is an ERC-20 token on Ethereum that represents Bitcoin at a 1:1 ratio. Each WBTC token is fully backed by one BTC held in reserve by a custodian (primarily BitGo. In simpler terms, WBTC is like a “deposit receipt” for Bitcoin: you lock up your BTC with the custodian, and you receive WBTC that can be used on Ethereum. The WBTC DAO, composed of dozens of industry members (including MakerDAO and Gnosis), governs the project and oversees the minting/burning process to maintain transparency. This structure helps ensure that WBTC remains fully collateralized and somewhat decentralized in decision-making, even though the actual BTC is held by a centralized custodian.

Why does WBTC exist? Put simply, it enables Bitcoin holders to participate in Ethereum’s DeFi ecosystem. Bitcoin’s blockchain is secure but not designed for complex smart contracts or DeFi applications. By “wrapping” BTC into WBTC, you effectively bring your BTC onto Ethereum, where you can trade it on decentralized exchanges, lend or borrow against it, use it as collateral to mint stablecoins, provide liquidity in pools, and more. None of that is natively possible with BTC on the Bitcoin network alone. WBTC acts as a bridge between the two worlds: it unlocks Bitcoin’s value for use in DeFi while maintaining a peg to Bitcoin’s price. In short, WBTC exists to make Bitcoin interoperable with other blockchain applications.

The concept of wrapped assets isn’t unique to Bitcoin – many blockchains have “wrapped” versions of other coins to enable cross-chain usage. WBTC was simply one of the earliest and most successful, given Bitcoin’s immense liquidity and demand. Since its launch, WBTC has become a cornerstone of cross-chain liquidity; by 2025 it facilitates billions of dollars in monthly transaction volume as Bitcoin holders seek higher yields and utility.

Learn more: If you’re curious about the mechanics of moving between BTC and WBTC, check out our guide on How to Bridge BTC to WBTC Without a Centralized Exchange for a step-by-step look at wrapping and unwrapping BTC in a decentralized way.

Pros of Using WBTC in 2025

Why would someone convert their Bitcoin into WBTC? Here are the biggest advantages of using WBTC, especially in 2025’s DeFi landscape:

• Seamless DeFi Integration: WBTC unlocks seamless access to DeFi. You can trade WBTC on decentralized exchanges like Uniswap, lend/borrow it on platforms like Aave and Compound, or stake/farm it in yield farms. Native BTC cannot be directly used in these Ethereum-based dApps. In 2025, WBTC is supported by nearly every major DeFi platform – from DEXes and liquidity pools to lending protocols and yield optimizers. If you want to put your BTC to work, earning yield or as collateral, wrapping into WBTC is often the only way.
• Compatibility with Ethereum and Layer-2s: As an ERC-20 token, WBTC is compatible with the Ethereum ecosystem and its Layer-2 networks (L2s). You can move WBTC onto L2s like Arbitrum, Optimism, or Polygon for faster and cheaper transactions, and participate in DeFi on those networks as well. This means your Bitcoin can effectively live in multiple blockchain ecosystems once it’s wrapped. By 2025, many L2 DeFi protocols also support WBTC, expanding your options beyond Ethereum mainnet. This cross-chain flexibility is a huge plus – WBTC isn’t limited to one chain’s speed or fees (you can always bridge it to where the action is).
• Faster Transfers & Trading: Using WBTC can be faster for certain transactions compared to using Bitcoin natively. Bitcoin block times are around 10 minutes, and if you want to, say, trade BTC on a centralized exchange and withdraw, you might wait 30-60 minutes for confirmations and processing. In contrast, WBTC (on Ethereum or an L2) can be transferred in seconds to a few minutes. When moving within EVM-compatible chains, WBTC enables near-instant execution of trades and strategies. This speed can be crucial for arbitrage, fast-paced yield farming, or reacting quickly to market opportunities. Essentially, WBTC brings Bitcoin’s liquidity into environments with faster finality, which is valuable for active DeFi users.
• Required for Many Yield Strategies: If you’re a yield seeker or liquidity provider, WBTC is often a must-have. Many yield farms, liquidity pools, and staking programs in 2025 require WBTC (paired with ETH, stablecoins, etc.) rather than native BTC. For example, you might provide liquidity to a WBTC-ETH pool on a DEX and earn fees and reward tokens, or deposit WBTC into a yield aggregator vault that earns interest. These strategies can significantly boost your returns on BTC holdings. Similarly, protocols like MakerDAO accept WBTC as collateral to mint DAI stablecoins – something you can’t do with BTC directly. In short, any DeFi opportunity that involves Bitcoin’s value will almost always use WBTC or a similar wrapped version. If you want to maximize what you can earn on your BTC, wrapping into WBTC opens those doors.
• Broad Exchange and DApp Support: Over the years, WBTC has become a widely recognized asset. Aside from decentralized platforms, many centralized exchanges (CEXs) also support WBTC trading and custody. This broad acceptance means WBTC is highly liquid and easy to exchange back to BTC when needed. By 2025, WBTC’s liquidity and market cap will remain the largest among Bitcoin-pegged tokens, which generally ensures low slippage when trading and confidence in its 1:1 peg. Its longevity and integration into countless apps give it a network effect advantage – you won’t find another BTC-equivalent token with more utility across the board. Newer wrapped BTC alternatives (like tBTC, 21BTC, or others) exist, but they still have only a fraction of WBTC’s adoption and liquidity in practice. WBTC is the most “universally” usable form of BTC in DeFi.

In summary, WBTC in 2025 is still a powerful tool for anyone who wants to do more with their Bitcoin than just hold it. It lets you earn yield, provide liquidity, and participate in the booming DeFi ecosystem with the value of your BTC. For many, those benefits make wrapping BTC worth it – as long as you understand the trade-offs, which we’ll cover next.

Cons & Risks of WBTC

WBTC unlocks a lot of utility, but it also comes with trade-offs and risks. It’s crucial to be aware of these before deciding to wrap your Bitcoin:

• Custodial & Centralization Risk: By using WBTC, you are relying on a custodian (BitGo) and a consortium of merchants to hold the actual BTC and honor redemptions. This introduces counterparty risk that native BTC doesn’t have. If the custodian were to be hacked, insolvent, or subject to regulatory action, WBTC holders could lose redeemability for real BTC. For example, the collapse of FTX in 2022 rendered its wrapped BTC (soBTC) worthless and irredeemable. While WBTC has a DAO and reputable members, it’s still not trustless – you must trust that 1 WBTC = 1 BTC will hold true. Centralization also means potential regulatory risk: authorities could impose KYC/whitelist requirements or even freezing mechanisms through the custodian. In short, holding WBTC carries an extra layer of counterparty and compliance risk compared to holding BTC in your own wallet (which is sovereign).
• Smart Contract Risk: WBTC lives on Ethereum (and other chains), so it’s subject to smart contract vulnerabilities. The WBTC token contract and the bridge contracts could theoretically be exploited or bugged – for instance, a flaw could allow unauthorized minting of WBTC or improper release of BTC. To date, WBTC has not had major contract issues and is audited, but the risk is not zero. Additionally, when you use WBTC in DeFi apps, you expose yourself to those protocols’ smart contract risks (e.g., a bug in a lending platform could affect your WBTC deposit). By contrast, Bitcoin’s base layer security is extremely robust and time-tested; using WBTC means trusting code beyond just Bitcoin’s code. Even if the BTC backing is safe, a hack in the Ethereum-based infrastructure could affect WBTC users. This is a risk inherent to all wrapped assets and bridges – a reminder that “code is law,” and sometimes code can have flaws.
• Potential for Depeg or Liquidity Issues: In normal conditions, WBTC trades exactly at the price of BTC. However, in extreme situations, WBTC could depeg from BTC’s value. This might happen if the market doubts the backing (e.g. custodian issues) or if there’s a sudden rush to redeem and not enough arbitrageurs to stabilize the price. We saw minor WBTC discounts at times of market stress in the past. There’s also a scenario where if BitGo suspended redemptions (say due to a regulatory freeze or technical problem), WBTC’s price could drop below BTC. Additionally, while WBTC is liquid on Ethereum, it’s not useful outside the crypto markets – you can’t pay merchants with WBTC, and some exchanges don’t list it. If liquidity dries up or a better alternative overtakes WBTC, you could be stuck with a less useful token. Impermanent loss is another related risk: if you put WBTC into a liquidity pool (e.g. WBTC-ETH), you could lose some BTC value relative to just holding, if the price ratio changes significantly. This isn’t a WBTC-specific flaw (it’s a general LP risk), but it’s worth noting since many WBTC users will be engaging in LPs or yield farms. You might end up with less BTC equivalent after withdrawing from a pool due to IL.
• Conversion Costs and Complexity: Converting BTC to WBTC, isn’t free or instant. You’ll pay fees to wrap or unwrap (whether via a custodian, a DEX swap, or a bridge). On the Ethereum mainnet, gas fees can be significant, and using centralized exchanges to swap involves their withdrawal fees and wait times. If you’re not already set up on Ethereum, acquiring WBTC can feel complex (managing a Web3 wallet, etc.). These friction costs mean WBTC is best for scenarios where you’ll utilize it in DeFi for a while – otherwise, the round-trip fees might not be worth it. We’ll touch on bridging costs in a later section, but be aware that wrapping small amounts of BTC can be particularly costly proportionally. (Our team has a detailed Bridging Fees Breakdown: What Does It Cost to Bridge BTC to ETH in 2025? If you want to see how WBTC conversion fees compare across methods.)
• Trust in the Ecosystem: More philosophically, using WBTC means moving your BTC into a less censorship-resistant environment. Bitcoin’s appeal is its censorship resistance and self-custody. With WBTC, you’re giving up some of that purity: the tokens exist at the pleasure of a consortium, and your activities are subject to the rules of Ethereum and DeFi (e.g. high gas fees, MEV issues, or protocol governance decisions). Some hardcore Bitcoiners dislike WBTC for this very reason – it introduces intermediaries and complexities. If decentralization, maximalism, or long-term security is your priority, wrapping into WBTC might not align with those values. There have been efforts to create more decentralized BTC wrappers (like tBTC by Threshold Network, which uses a network of nodes instead of a single custodian), to address WBTC’s trust model. However, these are newer and less battle-tested than WBTC. As of 2025, WBTC remains dominant, but alternatives are emerging specifically to tackle the custodial risk. This underscores that the trade-off exists, and you should only use WBTC if you’re comfortable with it.

Security Tip: Bridges and wrapped tokens have been targets for hacks and failures historically. Always do your due diligence on the platforms you use to wrap/unwrap BTC. We’ve compiled a resource on The Security Risks of BTC to ETH Bridges (And How to Stay Safe) – it’s worth a read so you know how to choose reputable bridges and protect yourself when moving between chains.

WBTC vs BTC: When to Use Each

So, should you use WBTC or stick with native BTC? The answer depends on what you plan to do. Let’s compare WBTC vs. BTC on key factors:

In general, use WBTC when you want to actively use your BTC within the DeFi universe – for example, providing liquidity, leveraging, or earning yield on Ethereum or compatible chains. WBTC is a means to an end: it makes your BTC interoperable. If that interoperability is valuable to you (i.e. you have a DeFi strategy in mind), then WBTC is worth it. On the other hand, if you simply want to hold BTC long-term as an investment or use it within the Bitcoin network, you’re likely better off keeping native BTC in your own wallet for maximum security and simplicity.

It’s not an all-or-nothing choice either. Some users keep a portion of their BTC holdings as WBTC for active use, and the rest as native BTC in cold storage for safety. The key is to match the tool to the task:

• WBTC is a utility token for doing things with Bitcoin’s value (trading, DeFi, etc.).
• BTC is the asset and store-of-value for holding and transacting on the Bitcoin network.

Both have their place. The good news is that WBTC can always be redeemed back to BTC (and vice versa), so the choice isn’t permanent. Just remember that moving between the two incurs some cost and time.

If you decide you want to convert some BTC to WBTC (or unwrap WBTC back to BTC), be sure to use a secure and efficient bridge. Using a trustworthy bridge or swap service will save you fees and headaches. For example, TeleSwap is a bridge designed for BTC↔WBTC conversions that emphasizes security, speed, and low cost. We’ll talk more about bridging options next, but it’s crucial to choose a reliable method when moving between BTC and WBTC.

When Does It Make Sense to Use WBTC?

When should you use WBTC? Here are scenarios where wrapping your Bitcoin makes a lot of sense:

• Participating in DeFi on Ethereum or L2s: If you want to use Bitcoin in any Ethereum-based DeFi protocol – whether it’s providing liquidity on Uniswap, lending on Compound, borrowing on MakerDAO, or yield farming on Arbitrum – you will need WBTC (or an equivalent). In 2025, Bitcoin holders are increasingly using WBTC to earn yield or access credit. For instance, depositing WBTC into Aave to earn interest or using WBTC as collateral to borrow stablecoins are popular moves. Anytime the goal is to put your BTC to work in DeFi, wrapping it into WBTC is the way to go.
• Short-Term Trades or Arbitrage: Perhaps you’ve spotted a price discrepancy or a short-term opportunity in the market that involves Bitcoin. Using WBTC can be advantageous for fast trades. For example, arbitraging between a Bitcoin price on a DEX vs a CEX might require moving value quickly on-chain – WBTC enables that rapid movement on Ethereum. If you plan to buy/sell BTC frequently via DEXs or need quick pivoting of BTC into other tokens, WBTC is very useful. It spares you the slow Bitcoin confirmations and lets you react in minutes. Traders in 2025 often keep some WBTC on hand for agile moves between BTC and DeFi assets.
• Providing Liquidity in BTC Pools: Many decentralized exchanges and liquidity pools have WBTC pairs (e.g., WBTC-ETH, WBTC-stablecoin pools on Curve or Uniswap). If you want to earn fees and rewards by providing liquidity with your BTC, converting to WBTC is necessary. These pools can yield trading fees and often additional incentives (liquidity mining rewards). For example, a WBTC-ETH pool on an L2 might offer attractive APY. By contributing your WBTC (plus the other asset), you become a liquidity provider and earn on your BTC – something you couldn’t do with native BTC. If the yields outweigh the impermanent loss risk for you, this is a valid use case for WBTC.
• Collateral for Borrowing or Derivatives: WBTC is commonly used as collateral in various DeFi platforms. Aside from MakerDAO (where you can lock WBTC to mint DAI stablecoin), there are also derivative platforms, options vaults, and margin trading platforms that accept WBTC collateral. If you want to leverage your BTC (take a loan against it, or use it to trade derivatives on-chain), wrapping to WBTC is usually required. This can make sense if you believe in holding BTC long-term but want to get liquidity from it without selling – WBTC lets you do that on-chain via lending protocols and collateralized debt positions.
• Any cross-chain interaction involving BTC value: If you want to move BTC value onto an Ethereum-compatible chain (Ethereum, or even other ecosystems like Binance Smart Chain, Avalanche, etc.), the typical method is to go through a wrapped form. WBTC is one of the established forms on Ethereum and can often be bridged further from Ethereum to other chains. For example, you might bridge WBTC from Ethereum to Avalanche (in Avalanche, it becomes something like WBTC.e or a local representation). In 2025, the multi-chain world is vibrant, and WBTC often serves as the origination token to transfer Bitcoin’s value into various blockchain networks. Whenever you need BTC in a non-Bitcoin environment, WBTC is likely involved.

In summary, use WBTC when you have a clear plan to utilize it for earning, trading, or interacting with smart contracts. If your BTC would otherwise be sitting idle, WBTC can activate that capital. Just ensure the expected benefits (yield, profit, utility) outweigh the costs and risks of wrapping.

When You Should Avoid WBTC

On the flip side, there are times when using WBTC is not worth it. You might consider avoiding WBTC in these situations:

• Long-Term “HODL” or Cold Storage: If your primary goal is to hold BTC for the long term as a store of value, you’re usually best off keeping it in native form. Holding real BTC in your own wallet (especially a secure hardware wallet or multisig) eliminates the custodial risk and smart contract risk. WBTC doesn’t offer any advantage here – in fact, it introduces risk with no benefit if you’re just holding. For long-term security and minimal trust assumptions, avoid wrapping your BTC. Many users will unwrap WBTC back to BTC once they’re done with DeFi, precisely to return to Bitcoin’s robust security for storage.
• No Immediate DeFi Use Case: Perhaps you’re curious about WBTC but don’t have a specific plan for it. It’s generally advisable not to wrap BTC “just because.” If you’re not actively going to use WBTC in a platform, you’re taking on extra risk for no gain. Keep native BTC until you have a concrete need to convert. In 2025 there’s a bit of hype around cross-chain assets, but you should always have a purpose for wrapping – otherwise you’re exposing yourself to counterparty risk when you could just hold BTC safely.
• Avoiding Centralization/Counterparty Risk: If you’re ideologically opposed to custodial solutions or you simply don’t trust third parties, WBTC won’t be appealing. Some crypto users won’t touch WBTC because it goes against the trustless ethos. If you fall in this camp, you might explore more decentralized alternatives like tBTC or others – or avoid wrapped assets altogether. It’s a valid stance to say “I only want trust-minimized DeFi.” Keep in mind though that many “decentralized” BTC wrapper projects are still evolving and may have their own risks. But the bottom line: if trust trade-offs make you uncomfortable, it’s fine to avoid WBTC.
• High Conversion Fees (Small Amounts): Converting BTC to WBTC incurs fees (network fees, plus any service fee). If you only have a small amount of BTC, these fees can be disproportionately high. For example, wrapping $100 of BTC might cost you $20 in various fees if done inefficiently – a huge loss upfront. In such cases, it might not be worth using WBTC unless you can minimize those costs. If the fees to wrap/unwrap are too high relative to your amount or expected gains, you may choose not to bother with WBTC. (For tips on this, see our guide on How to Bridge Small Amounts of BTC to ETH (Low-Fee Strategies) – it covers ways to reduce fees, such as using Layer-2 networks or timing the transaction during low congestion). In general, if you can’t justify the cost of moving into WBTC, then it’s not worth using.
• Uncertain Regulatory Environment: In some regions, wrapping BTC could have unclear tax or regulatory implications (for instance, some tax authorities might treat a BTC→WBTC swap as a taxable event). If you’re concerned about this, you might avoid WBTC to keep things simple. It’s a niche consideration, but worth mentioning: always understand the implications in your jurisdiction. (So far, many treat wrapping as a crypto-to-crypto trade, which could be taxable, so recordkeeping is important if you do it.)

In essence, avoid WBTC when the added risks or costs outweigh the benefits for your situation. If you just want to hold or you only have a tiny bit of BTC, there’s little reason to introduce WBTC into the mix. Native BTC is unparalleled for secure holding and simplicity – WBTC is only “worth it” when you need that extra functionality in DeFi.

How to Bridge BTC to WBTC Securely

If you’ve decided to convert some BTC to WBTC (or vice versa), doing it securely and efficiently is critical. Historically, people often used centralized exchanges to swap BTC for WBTC (for example, deposit BTC on an exchange, trade for WBTC, then withdraw WBTC to a wallet). While that works, it’s cumbersome: you face multiple fees (exchange trading fee + withdrawal fees on both chains) and have to trust the exchange with your funds temporarily. In 2025, better options exist. Let’s talk about TeleSwap – a secure, decentralized bridge for BTC and WBTC – and general tips for safe bridging.

TeleSwap is a bridge protocol that allows you to swap between BTC and WBTC without a centralized intermediary. It’s built on the idea of a trustless cross-chain swap. Here’s why TeleSwap (and similar decentralized bridges) are worth considering for your BTC–WBTC conversion:

• Non-Custodial & Trustless: TeleSwap uses audited smart contracts and a network of nodes (leveraging TeleportDAO technology) to facilitate swaps. You do not give up control of your keys to any exchange or custodian during the process. For example, when converting BTC→WBTC, you send BTC into a special address controlled by the protocol, and the corresponding WBTC is released to your Ethereum wallet via smart contract – all in one atomic operation. There’s no point where TeleSwap can run off with your funds; either the swap executes completely or it fails and you keep your BTC. This trustless design means you avoid the risks of a CEX or manual custodian redemption. You also skip KYC and region locks – anyone with a wallet can use it. In short, TeleSwap keeps you in control and minimizes counterparty risk while bridging.
• Low Fees (0.1% Flat Fee): TeleSwap charges a low flat fee of ~0.1% on the swap amount, regardless of how large or small. This is extremely competitive compared to alternatives. For instance, a 1 BTC swap would cost ~0.001 BTC in TeleSwap fee. There are no hidden spreads; you get a fair market rate for BTC/WBTC minus that tiny fee. Many other methods have higher costs – centralized exchanges often charge 0.1-0.2% trading fee plus hefty withdrawal fees (a flat 0.0005 BTC to withdraw, etc.), and other bridges like THORChain have more complex fee models that can end up larger for certain sizes. TeleSwap’s simple 0.1% structure is transparent and especially beneficial for small-to-medium swaps where fixed fees would eat a lot. Aside from the 0.1%, the only other costs are the network fees (Bitcoin miner fee and Ethereum gas), which TeleSwap optimizes by doing the heavy lifting on low-cost networks (it often uses Polygon in the background to reduce gas costs). A typical ~$1,000 swap might incur just a few dollars total in network fees on top of the protocol fee. In summary, TeleSwap is one of the most fee-efficient ways to bridge BTC and WBTC.
• Speed: Thanks to its optimized design, TeleSwap completes swaps in as little as 2–5 minutes (often around ~3 minutes). That’s a huge improvement over doing it via an exchange (which can take 30+ minutes with all the confirmations) or even some cross-chain bridges that wait for many block confirmations. If you initiate a swap on TeleSwap, you’ll usually see the output asset in your wallet within a single Bitcoin block confirmation (for BTC→WBTC) or just a couple of Ethereum confirmations (for WBTC→BTC). The speed reduces your exposure to price volatility and opportunity cost – you can move your BTC into DeFi quickly, or cash out WBTC to BTC almost instantly when needed. In 2025, no one likes waiting around, and TeleSwap’s fast execution is a big plus.
• Aggregator and Multi-Chain Support: TeleSwap acts as a kind of bridge aggregator under the hood. It finds the best route to get your assets across chains, using its own protocol and sometimes integrating others for efficiency. For the user, it’s just a one-click experience – you don’t have to figure out which bridge or path is cheapest or fastest; TeleSwap’s engine does that for you. It also supports WBTC on multiple networks (Ethereum mainnet and several L2s like Arbitrum, Optimism, Polygon) and can deliver BTC to your Bitcoin address from any of those sources. This means you don’t have to manually bridge WBTC from an L2 to the mainnet to unwrap, for example – TeleSwap handles it. The aggregator approach also adds a layer of safety by routing around any inactive or expensive routes, ensuring you always get a reliable transfer. Essentially, TeleSwap simplifies the bridging process to one step for the user, even if multiple steps happen in the background.
• No Custodial Limits or Censorship: Because TeleSwap is decentralized, you won’t encounter withdrawal limits, account freezes, or geo-blocking. You can swap as much or as little as you want (subject to liquidity available) and as often as you want. There’s no middleman saying “wait 24 hours” or “provide ID for large transfers.” This freedom is important for users who want to remain in control of their assets at all times. It aligns with the ethos of crypto – your keys, your coins, and now your swap. Of course, always exercise caution and double-check addresses when using any bridge; with great power comes responsibility.

In practical terms, using TeleSwap to bridge BTC to WBTC, is straightforward. You visit the TeleSwap app, connect your wallet(s), specify BTC or WBTC and the amount, and input the receiving address on the other side. Then you follow the prompts to send your asset in and confirm the swap. The protocol handles the rest – you’ll receive the output asset in your wallet shortly after (for example, WBTC will show up in your MetaMask, or BTC will arrive in your Bitcoin wallet). For a detailed tutorial, refer to the Academy article How to Bridge BTC to WBTC Without a Centralized Exchange (it demonstrates the process, using TeleSwap, step-by-step).

Aside from TeleSwap, there are other methods like THORChain, atomic swaps, or exchange routes, but each has its drawbacks (higher fees, more complexity, or custody). TeleSwap’s combination of low fees, speed, and security makes it a top choice in 2025 for those who want to move between Bitcoin and Ethereum ecosystems. It’s essentially the bridge that WBTC has been waiting for – one that finally lets you swap in a decentralized, user-friendly way.

Final Thoughts

So, is WBTC still worth using in DeFi in 2025? The answer for most active crypto users is yes – if you use it in the right context. WBTC has proven its value by bringing massive Bitcoin liquidity into DeFi. Even in 2025, with alternative wrapped bitcoins emerging, WBTC remains the dominant and most widely integrated form of Bitcoin on Ethereum. It allows Bitcoin holders to earn yield, trade, and participate in innovative financial products that simply aren’t possible on the Bitcoin network alone. The data speaks for itself: usage of WBTC in DeFi is at all-time highs, and tens of thousands of BTC are actively deployed in protocols, working rather than just sitting idle.

However, WBTC is not a no-brainer for everyone. It introduces custodial risk and technical complexity that you must be comfortable with. The decision to use WBTC should come after weighing the benefits versus the risks for your specific needs. If you value security above all and have no interest in DeFi, you might stick with native BTC. But if you’re eager to put your BTC to productive use, WBTC is a proven gateway to do so – provided you understand the trade-offs.

Our guidance: Always evaluate your goals. Are you looking to earn yield on your BTC, or use it as collateral? WBTC can be a great tool. Are you simply holding BTC for the future, with no plans to utilize it in the interim? Then adding layers of risk may be unnecessary. You can even split your strategy: keep a core holding in BTC and convert a portion to WBTC for experimenting in DeFi.

If you do opt to use WBTC, make sure to practice good risk management. Only use reputable DeFi platforms, monitor the health of the WBTC peg (it has been very stable historically, but stay informed), and keep an eye on the custodial situation (BitGo and the WBTC DAO). And crucially, use secure methods to convert. As we discussed, platforms like TeleSwap can help you wrap and unwrap safely, quickly, and at low cost,, significantly reducing the friction of moving between BTC and WBTC. With the right tools, you can enjoy the benefits of WBTC while mitigating a lot of the pain points that early users faced.

In conclusion, WBTC remains highly relevant in 2025 as a bridge between the two largest crypto ecosystems. It’s a testament to the idea that collaboration (between Bitcoin and Ethereum communities) can unlock value for everyone. By making Bitcoin’s liquidity available to DeFi and giving BTC holders more ways to earn and use their assets, WBTC has carved out an enduring role. Just remember: do your homework, stay safe, and use WBTC when it makes sense for you.

✅ Need to move BTC to DeFi? Bridge it to WBTC securely via TeleSwap and stay in control of your assets. With low fees and a trustless design, TeleSwap makes BTC↔WBTC conversions easier than ever – so you can explore DeFi without giving up security.

FAQ

Is WBTC still useful in 2025?

Yes, WBTC is absolutely useful in 2025 – perhaps more than ever. Wrapped Bitcoin has become a key asset in DeFi, allowing Bitcoin holders to earn yield and access Ethereum-based protocols. In early 2025, WBTC usage hit all-time highs: daily transaction counts and total value locked in DeFi have surged. The majority of WBTC is locked into lending platforms, DEX liquidity pools, and other DeFi services, indicating that many people find it worthwhile. As long as you want to do more with your BTC (beyond holding or transacting on Bitcoin’s network), WBTC remains a useful tool. Its integration across almost all major DeFi apps makes it extremely relevant for yield farming, collateralized borrowing, and trading on decentralized exchanges in 2025. The utility of WBTC has not diminished – if anything, it’s grown as DeFi has matured.

What are the risks of using WBTC?

The main risks of using WBTC are related to trust and technical complexity. First, WBTC is custodial – it relies on a centralized custodian (BitGo) to hold the BTC reserves. This introduces counterparty risk: if something were to happen to the custodian or the keys, WBTC could lose its 1:1 peg to BTC. There’s also a centralization/regulatory risk since a custodian could be subject to regulatory actions (e.g.,, freezing assets, requiring KYC for redemption). Second, WBTC operates via smart contracts on Ethereum, so there’s smart contract risk – bugs or hacks in the WBTC contract or the DeFi protocols you use could lead to loss of funds. WBTC itself has a good security track record, but no smart contract is 100% risk-free. Third, there’s market/liquidity risk: in extreme scenarios, WBTC might trade at a slight discount if there’s panic about its backing or if liquidity dries up. Additionally, using WBTC exposes you to bridge risks when converting (though you can mitigate this by using safe bridges like TeleSwap). Finally, any DeFi activity (like providing liquidity or borrowing) carries its own risks,, such as impermanent loss or liquidation. In summary: custodial trust, smart contract vulnerabilities, and potential peg or platform failures are the key risks to be mindful of when using WBTC. Always use reputable services and consider insurance or risk management strategies if you’re deploying large amounts of capital.

Should I use WBTC or BTC in DeFi?

If you want to participate in Ethereum (or cross-chain) DeFi with your Bitcoin, you’ll need to use WBTC (or another wrapped BTC). Native BTC cannot directly interact with Ethereum’s smart contracts or liquidity pools. So for using Bitcoin in DeFi, WBTC is the go-to choice – it’s supported on DEXs, lending platforms, yield farms, you name it. On the other hand, if you prefer the security of native BTC and don’t plan to use DeFi, you should stick with native BTC. It really depends on your goals:

• Use WBTC if you have a clear DeFi application: e.g., providing liquidity, earning interest, using BTC as collateral on Ethereum. WBTC is essentially your ticket into those ecosystems.
• Use native BTC if your priority is to hold for value or to use Bitcoin on its own network (for payments, Lightning, etc.) without extra layers of risk.

Think of it this way: WBTC is for when you want your BTC to do more things, BTC is for when you want to keep it simple and maximally secure. Many users do both – they keep a portion in BTC and convert a portion to WBTC when an opportunity arises, then possibly convert back. If you do venture into DeFi, WBTC (being the most established wrapped BTC) is usually the recommended version to use because of its wide acceptance.

How can I convert BTC to WBTC securely?

You can convert BTC to WBTC securely by using a trusted bridge or exchange that has low fees and a good reputation. One of the most secure methods in 2025 is to use a decentralized bridge like TeleSwap. TeleSwap allows you to swap BTC for WBTC (and vice versa) without going through a centralized exchange or custodian directly, meaning you stay in control of your funds during the swap. It leverages smart contracts and a decentralized network to ensure the swap is atomic and secure. The process typically involves sending BTC to a provided address and receiving WBTC in your Ethereum wallet within a few minutes. TeleSwap’s protocol is audited and non-custodial, which significantly reduces risk compared to sending your BTC to an exchange and trusting them to give you WBTC. Moreover, TeleSwap is cost-effective (around 0.1% fee) and fast, which adds to the security in the sense that there’s less time your funds are in transit or exposed to potential issues.

If you prefer using an exchange, stick to major reputable exchanges (like Coinbase, Binance, Kraken, etc.). The secure way in that route is: send BTC to the exchange, trade for WBTC, then withdraw WBTC to your wallet. Ensure you have two-factor authentication and withdrawal addresses whitelisted if possible – basically, practice good op-sec because while the BTC is on the exchange, it’s in their custody. Also be mindful of fees (exchanges will charge trading fees and withdrawal fees). Some people also obtain WBTC via DeFi swaps (for example, swapping BTC for WBTC through a protocol like THORChain or via DEX if they have a source of BTC on an L2). These can be secure if you use the protocol correctly, but they may require more steps or have higher fees.

In all cases, once you have WBTC, move it to a wallet you control (like MetaMask or a hardware wallet that supports Ethereum). That way, after conversion, you’re holding the WBTC securely in self-custody. To summarize: we recommend TeleSwap for a quick, secure BTC→WBTC bridge, but if not available, use well-known exchanges or decentralized swap protocols, and always follow best security practices (double-check addresses, enable security features, and start with a small test amount if you’re trying a method for the first time).

What is the best bridge for BTC to WBTC swaps?

The “best” bridge can depend on your priorities (speed, fee, decentralization), but TeleSwap is arguably one of the top options for BTC↔WBTC swaps in 2025. It’s designed specifically for Bitcoin-to-Ethereum transfers and has a few key advantages: very low fees (~0.1%), fast settlement (often ~3 minutes), and a trustless architecture (no accounts or custodians – it’s all smart-contract driven). TeleSwap aggregates routes and uses efficient mechanisms to minimize costs, often beating alternatives like THORChain in total cost for small to mid-sized swaps. Importantly, TeleSwap has a clean track record and transparent operation, which gives users confidence in its security.

Other notable bridges include THORChain (a decentralized cross-chain swap network) and various bridge aggregators (like Rango or LI.FI) that might route through WBTC liquidity on DEXs. THORChain is decentralized and doesn’t require wrapping (it can swap native BTC to native ETH or ERC-20s in one go), but it can have higher variable fees and longer wait times depending on liquidity and network conditions. Some users still prefer it for its no-custody approach. Bridge aggregators can sometimes find good paths, but they often will end up using something like TeleSwap or THORChain under the hood for the BTC step anyway.

Centralized exchanges are technically “bridges” too (the old-fashioned way), but they are less ideal from a decentralization standpoint and can be slower/less fee-transparent. Still, if you trust a particular exchange and don’t mind the process, they work reliably.

In summary, TeleSwap stands out as one of the best bridges for BTC and WBTC due to its combination of low cost, speed, and non-custodial design. It’s purpose-built for this use case. Just be sure to always use the official TeleSwap app or a reputable aggregator – there have been scam sites in the past, as with anything valuable. Always double-check URLs. If TeleSwap is unavailable, THORChain is a solid decentralized alternative (just watch out for liquidity fees), and as a last resort, a major CEX can do the job.