Threshold Network has launched tBTC on Starknet, marking a major leap forward for Bitcoin’s integration into decentralized finance. This move allows BTC holders to trade, lend, and participate in DeFi protocols at a fraction of the cost typically seen on Bitcoin's mainnet—with transaction fees as low as $0.01.
Unlike traditional wrapped Bitcoin products that rely on custodians, tBTC is trust-minimized, enabling users to mint native BTC on Starknet without intermediaries. Bitcoin can now enter the DeFi ecosystem directly through Threshold’s user interface or by bridging from Ethereum.
Bitcoin's entry into DeFi has long been hampered by high transaction fees, long confirmation times, and limited programmability. Threshold and Starknet aim to solve these challenges head-on.
Starknet, a Layer 2 ZK-rollup, delivers high throughput—857 transactions per second in testing—and utilizes zero-knowledge proofs (STARKs) for fast, secure, and scalable execution of smart contracts. These features make complex financial strategies possible at a low cost, helping Bitcoin become more than just a store of value.
Users can already trade tBTC on decentralized exchanges like Ekubo, with lending services through the Vesu protocol on the horizon. Looking ahead, Threshold plans to integrate additional DeFi primitives such as perpetual contracts, collateralized debt positions (CDPs), and automated yield vaults.
According to Threshold Labs co-founder MacLane Wilkison, this evolution represents a fundamental shift in Bitcoin's utility:
“This upgrade transforms Bitcoin into a fully usable asset, rather than a static store of value.”
tBTC leverages threshold cryptography and a decentralized signer network, ensuring users retain custody of their BTC and face no KYC requirements. This makes it both secure and permissionless, aligning with the core ethos of crypto. Starknet’s STARK-based architecture further reinforces this, offering Ethereum-level security with vastly improved scalability.
Currently, Bitcoin's share in DeFi remains minimal—less than 0.3% of total value locked (TVL). By dramatically reducing costs and improving usability, Threshold’s Starknet integration could ignite a new wave of Bitcoin-based DeFi adoption across trading, lending, gaming, and real-time payments.
As the Bitcoin ecosystem inches toward programmability and scalability, tBTC on Starknet may prove to be a pivotal bridge to the next era of decentralized finance.
June 2025, Cryptoniteuae