• Threshold Network has partnered with Wormhole to allow easy transfer of a tokenized representation of Bitcoin (BTC) to 20 blockchain ecosystems.
• The integration will enable tBTC tokens to be moved between Ethereum Virtual Machine chains, such as Arbitrum and Polygon, and non-EVM chains like Solana and Aptos.
• The new bridging method eliminates the need for creating wrapped tokens, which minimizes risks for token holders while preserving liquidity.
Threshold Network Bridges Bitcoin With Wormhole
Threshold Network has taken a major step towards revolutionizing the on-chain DeFi world by partnering with cross-chain token protocol Wormhole. This collaboration will allow tBTC tokens – a tokenized representation of bitcoin – to be easily transferred across 20 blockchain ecosystems.
Wide Range Of Blockchain Ecosystems Supported
The integration will enable tBTC tokens to move freely between Ethereum Virtual Machine (EVM) chains – such as Arbitrum, Optimism and Polygon – and non-EVM chains like Solana, Aptos, Sui, and Cosmos. Using bitcoin on other networks previously required users to rely on centralized bridges that often increased security risks for token holders due to exploits worth billions of dollars in 2022.
No Wrapped Tokens Needed To Preserve Liquidity
The Wormhole bridging plan addresses this issue through an efficient deployment of capital that eliminates the need for creating wrapped tokens each time it needs to be moved across different networks. This way, the tBTC supply remains intact while risk is corralled in local ecosystems without taking up valuable liquidity necessary elsewhere.
Strong Community Support For Integration Vote
The proposal was met with strong community support when announced in mid April before being fully approved after a governance vote at the end of the month. This marks a big milestone for Threshold network as they continue their push towards making Decentralized Finance more accessible than ever before.
Threshold Network’s partnership with Wormhole is yet another example of how blockchain technology is evolving rapidly and advancing financial inclusion around the globe – allowing users from all walks of life access to a variety of services built on decentralized infrastructure including access to cryptocurrency markets at low cost and minimal risk exposure.