Threshold Network revolutionizes institutional access to Bitcoin for DeFi with the new tBTC

Threshold Network has announced a significant update to the tBTC protocol, marking a decisive breakthrough for the integration of institutional Bitcoin into decentralized markets.

The announcement comes at a historic moment: institutional participation in Bitcoin has reached record levels following the approval of spot ETFs in the United States in 2024.

Today, institutional entities collectively hold over $414 billion in Bitcoin, with corporate reserves exceeding 1 million BTC distributed among 172 publicly traded companies.

In total, the main addresses of institutions and large investors represent more than $500 billion: the largest concentration of digital wealth in the world.

Overcoming Bitcoin’s Institutional Barrier

Despite the exponential growth of reserves, institutions have faced complex operational challenges in accessing DeFi yields.

Until now, the process involved numerous steps and network changes, creating friction and risks for professional treasury management. The latest upgrade from Threshold represents a crucial step in overcoming these obstacles.

The new architecture of the tBTC protocol drastically simplifies access for all Bitcoin holders, allowing direct minting on supported chains.

This update lays the groundwork for future secure and direct integration with institutional custodians, paving the way for compliant and secure institutional participation.

A Simplified and Decentralized Experience

With the new tBTC, it is now possible to perform minting directly on supported chains with a single Bitcoin transaction, without the need for secondary approvals or unnecessary steps.

Redemption to the Bitcoin mainnet has also been made equally simple, maintaining Bitcoin’s philosophy of simplicity and ensuring full decentralization.

1. A single transaction: the onchain minting flow replaces multi-step processes and network approvals.
2. Fully decentralized verification: each issued tBTC is backed 1:1 by native onchain BTC, without intermediaries or centralized custody risks.

“This update builds the infrastructure that finally connects institutional-grade Bitcoin to decentralized markets,” stated MacLane Wilkison, Co-Founder and CEO of Threshold Labs.

“We have spent years building the most secure decentralized bridge. Now, with this upgrade, it has become the safest and simplest for institutions holding the world’s Bitcoin.

It is the missing link that unites the security standards of traditional finance with the innovation of DeFi.”

Operational Risk Reduction: New Features

The update introduces significant innovations in the tBTC app, designed to simplify transactions and reduce operational risks.

The Main Innovations

1. Gasless minting: users deposit Bitcoin and receive tBTC on supported chains without having to pay gas fees.
2. Simplified redemption: immediate return to the Bitcoin mainnet through a decentralized and direct flow.
3. Vaults and yield strategies: a unified interface to discover tBTC integrations and managed strategies across different ecosystems.
4. Cross-chain liquidity: seamless movement of Bitcoin capital between Ethereum, Arbitrum, Base, Polygon, Sui, Starknet, BOB, and Optimism.

“This is a protocol upgrade that signifies the maturity of Threshold as a network,” stated Callan “Sap” Sarre, Co-Founder and CPO of Threshold Labs.

“For the user, it is now as simple as a click. For the institution, it is the first compliant on-ramp. We have eliminated both the technical friction and the existential risk in one fell swoop.”

Unlocking $500 Billion for DeFi

By making institutional Bitcoin usable in DeFi in a secure and verifiable manner, Threshold Network opens the doors to a new class of liquidity. For decentralized markets, this means:

1. Deeper liquidity: more Bitcoin in DEX pools and lending protocols.
2. Better returns: sustainable capital flows from long-term holders.
3. Greater legitimacy: DeFi aligns with institutional security and compliance standards.

“The scale of institutional adoption following the approval of ETFs has been extraordinary,” added Wilkison. “Our goal is to build the infrastructure that allows institutions, funds, and companies to interact with Bitcoin onchain securely.

As traditional finance integrates Bitcoin into portfolios, tBTC positions itself as the bridge ensuring decentralized and transparent participation.”

Threshold Network: Five Years of Innovation and Security

In five years of operation, Threshold has managed over $4.2 billion in cumulative volume through the bridge, becoming the standard for decentralized Bitcoin infrastructure.

The network uses a 51-of-100 threshold signature model to ensure unparalleled security, while tBTC allows Bitcoin to move freely across different ecosystems without custodians or compromises.

A Reliable Bridge for the Future of Bitcoin

Threshold Network is confirmed as the decentralized protocol behind tBTC, a fully non-custodial asset guaranteed 1:1 by Bitcoin, protected by the threshold signature model.

tBTC allows native BTC to move across chains like Ethereum, Base, Sui, Arbitrum, and Starknet without the need for custodians or wrapped tokens. With a history of operational resilience and billions in transaction volume, Threshold offers the most tested and secure Bitcoin bridge in Web3.

To discover the new features of the app and institutional access, you can visit threshold.network.