Definition
WBTC (Wrapped Bitcoin) is an ERC-20 token on Ethereum that represents Bitcoin at a 1:1 ratio. It is an asset issued and managed by a consortium that oversees the creation and destruction of tokens corresponding to underlying BTC. WBTC functions as a tokenized representation of Bitcoin within the Ethereum ecosystem, conforming to Ethereum’s token standards and accounting model.
In Simple Terms
WBTC is a special token on Ethereum that stands for Bitcoin. Each WBTC is meant to match one BTC held separately. It lets Bitcoin value exist in Ethereum’s token format, so BTC can appear as a standard Ethereum token while still being tied to actual Bitcoin outside the Ethereum network.
Context and Usage
WBTC is commonly referenced in discussions about tokenized Bitcoin, cross-chain asset representation, and Ethereum-based financial primitives. It appears in protocol documentation, asset listings, and analytics dashboards as a bridged Bitcoin asset on Ethereum. WBTC is often categorized alongside other wrapped or synthetic assets that mirror the value of base-layer cryptocurrencies on different networks.