Both bring Bitcoin into DeFi. Hemi’s solution works.

Everyone sees the potential for Bitcoin in DeFi, but few have tried to use it. Protocols like Wrapped BTC (WBTC) attempt to bring Bitcoin into Ethereum’s DeFi ecosystem, with mixed results. Hemi takes a different approach with hemiBTC and brings Bitcoin into Ethereum in a very real way for the very first time.

So what’s the difference? WBTC relies on a centralized model. Bitcoin is locked with a custodian, and a matching amount of WBTC is minted on Ethereum. This process depends on off-chain coordination and trusted third parties to manage and verify the transfer. While it brings Bitcoin into Ethereum’s ecosystem, it comes with risks tied to custody, regulation, and counterparty trust.

hemiBTC takes a fundamentally different approach. It doesn’t rely on custodians or centralized bridges. Instead, it uses decentralized tunnels that allow Bitcoin to move between chains or compromising trust assumptions. The result is a system that keeps Bitcoin native, maintains on-chain transparency, and minimizes trust requirements—making it a more secure and scalable foundation for Bitcoin in DeFi.

How hemiBTC Works

On Hemi, Bitcoin gains access to expressive programmability as hemiBTC without compromising its integrity by turning custody over to a central party. hemiBTC is minted trustlessly and on-chain through the Hemi Tunnel. Simply connect Bitcoin to Hemi, choose an amount of BTC, and the tunnel mints hemiBTC into an EVM-compatible Hemi wallet address.

How WBTC works

WBTC is an Ethereum-based token that mirrors the value of Bitcoin, allowing users to interact with Ethereum’s decentralized applications using Bitcoin-backed assets. The process begins when a user deposits Bitcoin with a centralized custodian—most commonly BitGo. This custodian is responsible for securely holding the original BTC and minting a corresponding amount of WBTC on the Ethereum blockchain. Each WBTC token is fully backed 1:1 by Bitcoin held in reserve.

The Similarities Between WBTC and hemiBTC

While WBTC and hemiBTC take different technical approaches, they both aim to solve the same core problem: Bitcoin is valuable but not directly usable in DeFi. Both WBTC and hemiBTC enable users to bring Bitcoin into smart contract ecosystems—in this case, Hemi’s network—and access decentralized financial tools that aren’t available on the Bitcoin base layer.

They both let users lend and borrow, earn yield, trade, and stake on Hemi. Both tokens are designed to maintain a 1:1 redemption ratio with BTC, meaning holders can convert back to native Bitcoin. In WBTC’s case, this redemption relies on custodians who manually manage the process. hemiBTC, by contrast, uses a decentralized mechanism to maintain trust minimization and on-chain verification, offering an alternative that stays closer to Bitcoin’s original trust model

The Differences Between WBTC and hemiBTC

The core difference between WBTC and hemiBTC lies in how trust is managed. WBTC depends on centralized custodians to hold the original Bitcoin. This model introduces a critical point of failure: if the custodian is compromised, hacked, goes bankrupt, or faces regulatory action, user access to the underlying BTC can be blocked or permanently lost. Users must place full trust in the custodian to store their funds securely, remain operational, and handle redemptions accurately and without delay. While this system can function well under normal conditions, it exposes users to risks outside their control.

hemiBTC takes a different approach. It avoids reliance on any single third party by using Hemi Tunnels—trust-minimized bridges that allow Bitcoin to move into the Hemi network using on-chain logic. The launch of Hemi Tunnels is phased, eventually achieving broad trust-minimized operations. In the current development phase, Tunnels operate via an optimistic fault window on the Ethereum side and an over-collateralized multisig protocol on the Bitcoin side. As development progresses, Tunnels will integrate additional features, including ZK-proof based settlements, and expanded support for Hemi native assets. Ultimately, Hemi’s Tunnels will reach a mature level of decentralization, further minimizing risk.

Importantly, the Hemi network doesn’t require users to choose between models. It supports both WBTC and hemiBTC, giving users the flexibility to pick the version of Bitcoin-backed assets that aligns with their preferences—whether that’s the familiarity of custodial systems or the resilience of decentralized infrastructure.

Earn Points With hemiBTC Now

During the Mainnet Season of the Hemi Points program, providing liquidity with hemiBTC remains one of the most effective points-earning strategies. Tunnel to Hemi and start earning immediately, with a 3x, 5x, or even 8x boost when you provide liquidity with hemiBTC in select pools with partners including Sushi, Oku, Izumi, and DODO.