In a major advancement for defi, Threshold Network has introduced tBTC on Starknet, expanding Bitcoin’s utility within a scalable, multi-chain DeFi ecosystem.
This integration empowers BTC holders to engage in trading, lending, and sophisticated strategies at a minimal cost of $0.01 per transaction, all while preserving full asset custody and maintaining high security standards.
For years, Bitcoin’s role in DeFi has been limited by its base-layer constraints. In June 2025, the average cost of a Bitcoin transaction was $1.49, with fees surging past $90 during periods of heavy network congestion. With confirmation times ranging from 10 to 60 minutes, even a $100 trade could incur a 1.5% fee, making meaningful DeFi participation economically unfeasible.
tBTC on Starknet changes this dynamic entirely. It offers instant confirmations, up to 857 transactions per second throughput, and near-zero fees. For the first time, Bitcoin actively participates in DeFi, enabling trading, lending, yield farming, and more.
A New Wave of DeFi Innovation
The launch of tBTC on Starknet is already driving a new wave of innovative decentralized applications. Among them is Ekubo, Starknet’s native decentralized exchange, facilitating efficient tBTC trading with minimal slippage. Another upcoming platform, Vesu, will allow users to borrow against their tBTC holdings without relinquishing custody—a lending model that has seen significant success on Ethereum. Looking ahead, integrations with platforms offering perpetual contracts and collateralized debt positions (CDPs) are set to unlock leveraged trading and secure borrowing options for Bitcoin users. Additionally, automated yield vaults will simplify access to optimized DeFi strategies, enabling BTC holders to generate passive returns easily.
Partnerships with Oracle networks and liquidity providers are established to support this growing ecosystem to ensure accurate price data and efficient capital flow.
Beyond DeFi: Expanding Bitcoin’s Web3 Utility
The integration of tBTC on Starknet extends Bitcoin’s utility beyond tradfi applications, opening the door to a wide range of innovative use cases. One such advancement is streaming payments, which enable real-time, per-second Bitcoin transfers ideal for continuous income flows such as salaries, royalties, or subscription models. Additionally, smart contract automation on Starknet allows developers to build BTC-powered applications without the high gas costs typically associated with on-chain activity. In gaming, instant and low-cost microtransactions allow incorporating Bitcoin into gameplay mechanics, enhancing user engagement, and enabling more dynamic in-game economies.
Together, these developments signal a significant evolution: Bitcoin is no longer limited to being a passive store of value. Instead, it is emerging as a foundational asset for the next generation of web3 applications across fintech, digital services, and entertainment.
Commenting on the project, Damian Chen, Head of Growth at the Starknet Foundation, stated:
“This fundamentally changes Bitcoin’s role in DeFi. We’re seeing developers revisit ideas killed by high fees. Bitcoin at scale is finally possible on Starknet.”
Trustless Security Meets Scalable Infrastructure
Unlike custodial-wrapped Bitcoin solutions, tBTC uses threshold cryptography, ensuring no single entity controls user funds. Over 100 independent nodes secure deposits, maintaining decentralization and resilience. Users retain full sovereignty over their assets—no KYC is required.
Starknet complements this with STARK-based rollup technology, compressing thousands of transactions into a single cryptographic proof.
How to Access tBTC on Starknet
Users can access tBTC on Starknet through two primary methods. The first is direct minting, where native BTC is converted into tBTC using the Threshold Network interface, enabling a straightforward and trustless onboarding experience. The second option involves bridging existing tBTC from Ethereum Layer 1 to Starknet via the official StarkGate bridge. Both pathways provide a seamless transition into a scalable, decentralized DeFi ecosystem with minimal friction and strong security guarantees.
Market Outlook: A Major Growth Opportunity
Starknet has solidified its position as a leading platform for scalable DeFi, boasting over $547 million in total value locked (TVL), 193 active protocols, and more than 11,000 daily users. The recent integration of native tBTC support further underscores Bitcoin’s role as a foundational component of the Starknet ecosystem.
Despite Bitcoin’s $2.1 trillion market cap, only $6.3 billion is currently deployed in DeFi (June 2025). As cost barriers fall, analysts project a 10–15x increase in Bitcoin’s DeFi footprint, unlocking new utility and composability across chains.
About Threshold Network
Threshold Network underpins tBTC, a Bitcoin-backed token designed for DeFi applications. tBTC is secured by a 51-of-100 threshold signer model. This enables seamless cross-chain interoperability across networks, including Ethereum, Solana, Arbitrum, BOB, and now Starknet. Since 2020, Threshold has supported over $450 million in total value locked (TVL) and $3.6 billion in bridge volume, providing resilient and scalable infrastructure for integrating Bitcoin into the defi ecosystem.
About Starknet
Developed by StarkWare, Starknet is a decentralized, permissionless zero-knowledge (ZK) rollup. Engineered for high throughput, rapid finality, and minimal transaction costs, Starknet offers long-term scalability and developer flexibility, positioning it as a foundational layer for the next generation of defi applications.