Bitcoin on TON: tBTC, Wrapped Forms, and Bridge Risks

Bitcoin is the largest crypto asset by market cap, but it lives on its own PoW chain without Ethereum- or TON-style smart contracts. To use BTC in DeFi on other chains it has to be “wrapped” — locked in a custody arrangement on the Bitcoin side, with an equivalent token issued on the target chain. As of May 2026 in the TON ecosystem BTC appears in several forms — tBTC, WBTC, and via bridge/OFT routes. Liquidity is still modest, but a BTCFi narrative on TON is slowly forming.

This article covers the main wrappers, their trust models, use cases on TON, and why even the most cautious users need to understand bridge risk before moving BTC into TON DeFi.

Why BTC doesn’t run “natively” on TON

Bitcoin and TON are architecturally different:

• Bitcoin uses Proof-of-Work, a constrained scripting language (Script), and a UTXO model.
• TON uses Proof-of-Stake, a full-featured smart-contract TVM, and an accounts-based model with cells/messages.

There can be no direct “native BTC” on TON — no shared consensus, no state link between the chains. The only way to bring BTC onto TON is a wrapper: a mechanism that holds BTC “there” and mints a token here.

Industry wrapping options fall into three classes:

1. Custodial wrapper (WBTC) — BTC held at a centralized custodian.
2. Decentralized wrapper (tBTC) — BTC locked by a distributed set of nodes via a cryptographic protocol.
3. Cross-chain messaging (via LayerZero, external OFT standards, or universal bridges) — a token “exists” across chains via mint/burn.

tBTC from Threshold Network

tBTC is the best-known “decentralized wrapped BTC” in the industry, built by Threshold Network (a merger of Keep Network and NuCypher).

Mechanics:

• A user sends BTC to a multi-sig address controlled by a Threshold node group with t-of-n threshold signatures.
• On Ethereum (originally), Arbitrum, and later other chains, tBTC is minted.
• On return — tBTC is burned, the node group signs unlocking the BTC to the original address.

tBTC’s strength: no single custodian. If one node is compromised, the protocol continues; an attack requires compromising a significant share of nodes.

Weakness: operational complexity — threshold signatures require live coordination among nodes, and failures can cause downtime; there were incidents on Threshold v1 in earlier years, and the migration to v2 was non-trivial.

On TON as of May 2026 tBTC exists via bridge/integration with Threshold Network — not a native issuance, a bridged jetton.

WBTC: the centralized classic

WBTC is the oldest BTC wrapper, with a peak market cap around $10B (numbers move). Held at BitGo Trust as custodian, issuance flows through a merchant mechanism.

Trust model:

• BitGo holds BTC in cold storage.
• The WBTC DAO controls protocol parameters.
• The merchant network handles BTC receipt and WBTC mint requests.

The most liquid wrapper in crypto — and the most centralized. All eggs in one BitGo basket. In 2024 BitGo announced restructuring custody through a Hong Kong subsidiary BiT Global, which sparked community debate.

WBTC on TON is present via bridge (Allbridge or other routes) as a jetton. Liquidity is modest.

Other wrappers and routes

• LayerZero BTC. OFT-standard experiments for BTC; not a mass format yet, but appearing in several ecosystems.
• renBTC. Historical Ren Protocol wrapper; project wound down in 2022. Not relevant on TON.
• lBTC (Lombard). Liquid-staking BTC via CCIP and specialized bridges — a recent product riding the BTC-yield narrative.
• BTC.b (Avalanche-style). Avalanche-native bridged BTC. Not direct on TON, but theoretically reachable through bridges.

For TON users the realistic options are tBTC and WBTC, picked by priority (decentralization vs. liquidity).

Comparison table

BTC use cases on TON

What you can actually do with wrapped BTC in TON DeFi as of May 2026:

1. Collateral on EVAA Protocol. Borrow stablecoins against BTC collateral — standard leverage without selling BTC.
2. LP in BTC/TON or BTC/USDT pools. Such pools exist on STON.fi and DeDust, but depth is small; impermanent loss and slippage are noticeable.
3. BTC-denominated perpetuals. Storm Trade supports BTC-pair perps — long/short BTC without leaving your TON wallet.
4. Spot trading BTC/jetton pairs. Swap BTC into TON, USDT, memecoins — standard DEX use case.
5. Long-term hold with potential BTC-yield. When an lBTC analog ships on TON, BTC-yield will become attainable (historically 0.5–3% APR).

i

On BTC-yield. “BTC yield” in crypto honestly rarely exceeds 1–3% APR. If someone offers 8–15% BTC-yield, it is usually leveraged, CEX-yield with counterparty risk, or a synthetic with funding dependence.

Bridge risks: what has happened

Bridges are the riskiest DeFi infrastructure class. Relevant incidents — for scale, not as direct critique of tBTC/WBTC:

• Wormhole (2022). $326M via signature spoof. Bridge-level, not BTC-specific.
• Nomad (2022). $190M via contract initialization bug.
• Multichain (2023). Founder key compromise, $130M+ — hits the canonical bridge model.
• TAC Bridge on TON (2026). $2.5M via exploit — a case specific to a TON bridge.

In the BTC context stakes are higher because BTC has historically been “sound money.” Many users move only part of their BTC portfolio into DeFi and keep core holdings native on cold wallets. Reasonable discipline.

!

Don’t hold more than 5–10% of your BTC portfolio in wrapped form on TON. TON BTC liquidity is thin; any bridge incident causes instant peg breakage of the wrapper. Active DeFi work — fine. Long-term storage — no.

tBTC vs WBTC on TON: which to choose

Depends on priorities:

• Decentralization first: tBTC. No single custodian, on-chain proof of reserves.
• Liquidity first: WBTC. Deeper pools, easier exit without slippage.
• Operational simplicity: WBTC. Fewer steps, faster mint/redeem.
• Prudential regulation: both currently in a gray zone — neither holds e-money or regulated-asset status.

For an active DeFi portfolio, splitting between both wrappers is reasonable, especially for amounts above $5–10k.

In practice: bringing BTC to TON

Baseline scenario (as of May 2026):

1. Acquire BTC via CEX, P2P, or Lightning payment.
2. Move to an address that supports tBTC or WBTC mint — usually Ethereum L1 or an L2.
3. Mint tBTC/WBTC through the relevant protocol UI.
4. Bridge to TON via Allbridge, Symbiosis, or an OFT channel (depending on availability).
5. Use in DeFi — EVAA, STON.fi, Storm Trade.

Alternative: buy wrapped BTC directly on a TON DEX (where liquidity allows). Simpler, but priced at a 0.5–2% premium to native BTC because of thin pools.

Fees: Ethereum gas (if minted via L1) + bridge fee + TON gas. For $1k cost-of-entry can be $30–80; for $10k — $50–150. Relative cost is higher than for USDT operations.

The future of BTCFi on TON

Several directions to watch:

• Native BTC-staking protocols (Babylon, EigenLayer-style for BTC). If their plumbing lands on TON, BTC yield becomes realistic.
• Stacks / Rootstock / sBTC integrations. Those ecosystems build BTCFi and might bring L2-BTC to TON via bridges.
• L1-level BTC integration. Unlikely in the next two years — requires fundamental architectural changes.
• Institutional BTC products (ETF wrappers, etc.). If the TON Foundation aligns with regulators, BTC-ETF jettons on TON could appear — but that is speculation.

For now BTC on TON is “wrapped liquidity for DeFi,” not “native BTC.” That is a normal stage for non-EVM ecosystems; on Solana and Avalanche BTC infra matured over years.

What this means for users: a checklist

1. Don’t move all of your BTC into wrapped form. Core holdings — native BTC on a cold wallet.
2. Choose the wrapper by priority: tBTC for decentralization, WBTC for liquidity.
3. Before minting, check current protocol status — any recent incidents.
4. Bridging to TON is a separate risk surface; don’t skip it in your analysis.
5. For large sums split between two independent wrappers.
6. Don’t chase “high BTC yield” — it almost always hides risk.

Conclusion

Bitcoin on TON as of May 2026 is a niche segment: liquidity is thin, wrappers come through bridges, no native BTCFi infrastructure exists yet. tBTC offers the decentralized route, WBTC the liquid one, both demand a conscious view of bridge risk.

For users the strategy is clear: a small slice of the BTC portfolio can serve specific DeFi tasks (collateral, perps, LP), but core holdings stay native. As infra matures the balance may shift, but the TAC drain is a healthy reminder that bridges remain the most fragile point of the DeFi stack.

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