Wrapped BTC

Wrapped Bitcoin (WBTC) is an ERC-20 token on the Ethereum blockchain, fully backed 1:1 by Bitcoin. Launched in January 2019 through a collaboration between BitGo, Kyber Network, and Ren, WBTC was designed to bridge Bitcoin's liquidity with Ethereum's decentralized finance (DeFi) ecosystem. By converting Bitcoin into WBTC, holders can engage in various DeFi activities such as lending, borrowing, and trading on Ethereum-based platforms, thereby enhancing the utility of their Bitcoin holdings. (coindesk.com)

The process of creating WBTC involves depositing Bitcoin with a custodian, who then mints an equivalent amount of WBTC tokens on Ethereum. This mechanism ensures that each WBTC token is backed by an equal amount of Bitcoin held in reserve, maintaining a 1:1 peg. The governance of WBTC is managed by a decentralized autonomous organization (DAO), comprising various stakeholders from the DeFi community. This structure aims to provide transparency and trust, as the public can verify the minting and burning of WBTC tokens through on-chain audits. (gemini.com)

Wrapped BTC supply corresponds to the amount of bitcoin held by BitGo, the custodian responsible for minting new WBTC ERC20 tokens and guaranteeing their backing by bitcoin.

Data sourced from Glassnode.