Introduction of tBTC on Starknet
On June 11, 2025, the innovative cryptocurrency protocol tBTC made its debut on Starknet, a decentralized layer-2 scalability solution. This development marks a significant evolution in the realm of decentralized finance (DeFi), allowing users to utilize Bitcoin as active capital rather than merely a store of value.
Key Features of tBTC
With tBTC, Bitcoin is seamlessly transitioned onto Starknet without the need for intermediaries, providing users with full control and custody of their assets. The process is facilitated through the Threshold User Interface, enabling direct minting of tBTC, which is a fully backed 1:1 representation of Bitcoin.
Currently, the average transaction fee for Bitcoin stands at $1.49 based on a seven-day moving average. In stark contrast, within the Starknet ecosystem, transactions utilizing tBTC can be executed for just $0.01.
MacLane Wilkison, one of the co-founders of Threshold Labs, articulated the limitations of Bitcoin on its mainnet, likening it to “gold bars in a vault,” which, while valuable, are not functional.
However, the introduction of tBTC means that Bitcoin can now engage actively in trades, lending, and other DeFi strategies at unprecedentedly low costs.
Transformative Impact on Bitcoin’s Utility
This advancement holds great promise given the current limitations of Bitcoin in DeFi; as per June 2025 data, a $100 transaction on the mainnet incurs fees of approximately 1.5%. The introduction of tBTC on Starknet transforms how Bitcoin can be utilized, giving it utility as a working capital.
The deployment of tBTC is an integral part of Threshold Network’s vision to cultivate a robust Bitcoin-Ethereum economy within the Starknet framework, which employs advanced zero-knowledge technology to facilitate high-speed, low-cost transactions. The Starknet platform has demonstrated impressive performance, achieving 857 transactions per second during testing, while ensuring robust security akin to that of the Ethereum network.
Damian Chen, the Head of Growth at the Starknet Foundation, heralded this shift in Bitcoin’s purpose within the DeFi ecosystem, mentioning that developers can now reinvigorate ideas previously stifled by high fees.
As blockchain technology continues to evolve, the tBTC and Starknet partnership could scale Bitcoin’s DeFi participation significantly, transitioning from a mere 0.3% of the total locked value of Bitcoin in DeFi, which was around $6.3 billion as of June 2025.
Starknet’s Growing DeFi Ecosystem
Recently, Starknet has become a vibrant hub for DeFi, boasting a total value locked (TVL) of $547 million, 193 active decentralized protocols, and over 11,000 daily users. The market is poised for expansion as transaction costs diminish and accessibility improves, presenting the potential for Bitcoin’s DeFi market to grow exponentially, by 10 to 15 times, thus unlocking new realms of activity beyond mere passive investment.
Security Features of tBTC
In terms of security, tBTC diverges from traditional wrapped Bitcoin options that rely on corporate custody, instead implementing a threshold cryptography model, which protects Bitcoin deposits through decentralized node management. Users retain sovereignty over their assets without mandatory KYC processes, demonstrating a commitment to user privacy and security.
Accessing tBTC
For users interested in accessing tBTC, they can mint it on Starknet through its dedicated user interface, or bridge it from Ethereum using the official StarkGate bridge. This flexibility opens avenues for Bitcoin holders to engage with the growing DeFi landscape without relying on third-party custodians.
Overall, as tBTC integrates with leading protocols on Starknet, it is set to redefine how Bitcoin interacts in the DeFi space, reinforcing the concept of trust-minimized, user-controlled finance.
About the Organizations Involved
Threshold Network underpins tBTC, facilitating the movement of Bitcoin across various blockchains like Ethereum and Solana, without compromising on decentralization or security. Meanwhile, Starknet stands as a leading permissionless zero-knowledge rollup tailored for long-term composability and scalability in decentralized applications.
Disclaimer
The article may include forward-looking statements that are subject to market risks and uncertainties; actual outcomes may diverge significantly from what is projected. The information provided herein does not constitute investment advice.
