tBTC Expands to Starknet, Bringing Bitcoin's Utility to a Scalable Multi-chain Ecosystem

This integration empowers BTC holders to engage in trading, lending, and sophisticated strategies at a minimal cost of $0.01 per transaction

In a move that could massively expand Bitcoin’s role in defi, Threshold Network has launched tBTC on Starknet, bringing the cryptocurrency’s liquidity and utility to a scalable, multi-chain DeFi ecosystem.

This integration enables BTC holders to participate in trading, lending, and advanced yield strategies at a minimal cost of $0.01 per transaction, all while maintaining full asset custody and high security standards.

For years, Bitcoin’s involvement in DeFi has been limited by the base-layer constraints of the cryptocurrency. In June 2025, the average cost of a Bitcoin transaction was $1.49, with periods of heavy network congestion seeing fees surge past $90.

With confirmation times ranging from 10 to 60 minutes, even a $100 trade could incur a 1.5% fee, rendering meaningful DeFi participation economically unfeasible.

tBTC on Starknet changes this dynamic entirely. It offers instant confirmations, throughput of up to 857 transactions per second, and nearly zero transaction fees. For the first time, Bitcoin is actively participating in DeFi, with traders engaging in spot and leveraged trading, lenders offering crypto loans, and yield aggregators optimizing passive income strategies for BTC holders.

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 enable users to borrow against their tBTC holdings without relinquishing custody—a lending model that has seen significant interest and use cases 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 in place to support this growing ecosystem by ensuring 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, paving the way for a diverse range of Web3 use cases. One such advancement is streaming payments, which allow for real-time, per-second Bitcoin transfer.

This capability is ideal for continuous income flows such as salaries, royalties, or subscription models, presenting new opportunities for businesses and individuals to manage finances and monetize content more effectively.

Furthermore, Starknet’s smart contract automation enables developers to build BTC-powered applications without the high gas costs typically associated with on-chain activity. In gaming, instant and low-cost microtransactions facilitate the integration of 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 integration, Damian Chen, Head of Growth at the Starknet Foundation said:

“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 that no single entity controls user funds. Over 100 independent nodes cooperate to 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. This allows Starknet to achieve high throughput and low latency, scaling the throughput to 857 transactions per second and aiming for up to 64,000 transactions per second.

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, providing a seamless transition for those already familiar with the tBTC token and the Ethereum ecosystem. Both pathways offer a smooth entry point into a scalable, decentralized DeFi ecosystem with minimal friction and strong security guarantees.

Market Outlook: A Major Growth Opportunity

Starknet has already become 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