Wrapped Bitcoin (wBTC)

Wrapped Bitcoin (wBTC) is an ERC-20 token on Ethereum that is pegged 1:1 to Bitcoin. Each wBTC is backed by an actual Bitcoin held in reserve by a custodian. Wrapping Bitcoin allows BTC holders to use their assets in Ethereum's DeFi ecosystem for lending, borrowing, and providing liquidity. wBTC is one of the most widely used wrapped assets and demonstrates how cross-chain value transfer works in practice.