tzBTC (wrapped Bitcoin)
tzBTC is a secure Bitcoin wrap, backed by a full-reserve of Bitcoin
tzBTC is a Bitcoin-backed token that operates on the Tezos blockchain. It allows users to represent Bitcoin (BTC) on Tezos, bringing the value and trust of Bitcoin into the Tezos ecosystem while enabling it to be used in decentralized finance (DeFi) applications.
Key Features of tzBTC
1:1 Bitcoin Backing:
Each tzBTC token is fully backed by 1 BTC held in reserve by a network of certified custodians. This ensures that tzBTC maintains its value equivalence to Bitcoin at all times.
Interoperability:
tzBTC bridges the Bitcoin and Tezos ecosystems, allowing Bitcoin holders to access Tezos’ growing suite of DeFi applications.
FA 1.2 Standard:
tzBTC is built using the FA1.2 token standard, a widely adopted standard on Tezos, ensuring compatibility with Tezos-based DeFi protocols and wallets.
Custodian and Keyholder Network:
tzBTC relies on a distributed governance model, where custodians securely hold Bitcoin reserves, and keyholders manage the issuance and redemption of tzBTC tokens.
Keyholders and Gatekeepers
tzBTC is a Bitcoin-backed token on the Tezos blockchain, designed to bring Bitcoin’s liquidity and stability to Tezos’ decentralized finance (DeFi) ecosystem. Its governance and security are maintained through a structured network of Keyholders and Gatekeepers, each with distinct roles:
Keyholders:
Keyholders are responsible for the custody of Bitcoin collateral and the management of tzBTC’s supply, ensuring a 1:1 peg with Bitcoin. They oversee the minting and burning of tzBTC tokens. The current Keyholders include:
LEXR: A Swiss-based legal and compliance firm specializing in financial market regulations.
Mt Pelerin: A financial institution offering tokenization services and compliant digital asset management.
Komainu: A regulated digital asset custody service provider, ensuring secure storage solutions.
Tangany: A white-label custodian for digital assets like Ethereum, Bitcoin, and Tezos, providing secure and compliant custody solutions.
Hex Trust: A licensed digital asset custodian offering services to protocols, foundations, financial institutions, and the Web3 ecosystem.
Gatekeepers:
Gatekeepers are authorized by Keyholders to interact directly with users, facilitating the minting and burning of tzBTC tokens. They ensure compliance by conducting Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. The current Gatekeepers include:
Bitcoin Suisse: A financial intermediary offering a range of crypto-financial services, including brokerage and custody.
Sygnum: A digital asset bank providing integrated services for digital assets and traditional banking.
Taurus: A company specializing in digital asset infrastructure, including custody, tokenization, and trading solutions.
Bity: A cryptocurrency exchange and financial intermediary offering services for buying, selling, and trading digital assets.
Woorton: A digital asset liquidity provider and trading firm, facilitating efficient market access.
This governance structure ensures that tzBTC operates transparently and securely, maintaining its value equivalence to Bitcoin while integrating seamlessly into the Tezos blockchain.
Acquiring and Redeeming tzBTC
tzBTC enables Bitcoin holders to engage with the Tezos ecosystem. Here are several methods to obtain tzBTC:
1. Decentralized Exchanges (DEXs):
3Route: A decentralized exchange aggregator (like 1inch) on Tezos offering efficient token swaps, including tzBTC. Users can trade various tokens directly from their wallets without intermediaries.
2. Direct Conversion via Gatekeepers:
tzBTC.io: Facilitates the conversion of Bitcoin (BTC) to tzBTC and vice versa.
Eligibility: Services are not available to U.S. residents.
Enrollment: Users must complete a Know Your Customer (KYC) process, providing identification to comply with Anti-Money Laundering (AML) regulations.
Conversion: Upon approval, users can deposit BTC to receive an equivalent amount of tzBTC or redeem tzBTC for BTC.
3. Upcoming Feature to TEZEX:
TEZEX Atomic Swaps: TEZEX plans to reintroduce atomic swap functionality, enabling trustless, peer-to-peer exchanges between BTC and tzBTC. This feature will allow users to convert assets without intermediaries, enhancing decentralization and security.
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