Bitcoin (BTC) exists on its own blockchain. Anyone who controls the private keys controls the coins directly, without a custodian standing between them and the network. Wrapped Bitcoin (WBTC), by contrast, is an Ethereum token designed to represent bitcoin on a one-to-one basis. The bitcoin backing WBTC is held in reserve by custodians.

WBTC allows bitcoin to be used in Ethereum applications, including lending markets and liquidity pools that cannot accept native BTC. Those applications run on Ethereum’s smart contracts and cannot read the Bitcoin blockchain directly, which is why a tokenized representation is needed. The trade-off is reliance on the reserve custodian, the merchants that mint and redeem WBTC, and the token’s smart contracts.

Custody has changed in stages since 2024. Under a plan announced in March 2026, BiT Global holds two of the three vault keys, while BitGo retains the third through its US technology entity. On October 19, 2026, WBTC said it was preparing to move the reserve to new custodian Bitcoin deposit addresses and was exploring a multi-custodian model. Coinbase’s cbBTC and Threshold’s tBTC use different custody arrangements.

BTC and WBTC at a glance

The following information was reviewed against issuer announcements, official documentation and major crypto media as of October 20, 2026. The comparison uses five criteria:

Chain: the network on which the asset exists.

Custody: who controls the bitcoin backing the token.

Access: how users obtain and redeem the asset, including whether KYC is required.

Published conversion fees: where the issuer provides them.

Track record: the launch date and events that affected holders.

Custody and track record are qualitative factors, so cannot be reduced to numerical scores.

Native BTC operates on the Bitcoin blockchain and does not require a custodian, merchant or smart contract to represent it. WBTC, cbBTC and tBTC are wrapped versions used on Ethereum, although wrapped tokens can also be issued on other networks. WBTC uses a multisignature arrangement shared by two companies, cbBTC relies on Coinbase, and tBTC uses a rotating group of node operators.

All three wrapped assets are designed to track bitcoin’s price. Native BTC, however, must be wrapped before it can be used in an Ethereum application. WBTC has existed since January 2019, making it older than cbBTC and tBTC. Its main custody issue is that, under the March 2026 plan, one company holds two of the three keys. tBTC spreads control across rotating operators for a published fee, while cbBTC requires users to trust Coinbase.

Each asset also uses the fee system of its network. Sending BTC requires a Bitcoin network fee. Sending WBTC requires Ethereum gas paid in ETH, the network’s transaction-fee currency. Users who open an empty Ethereum wallet may be unable to move WBTC until they add ETH for gas.

What is WBTC?

Wrapped Bitcoin is an ERC-20 token, the standard format for fungible tokens on Ethereum, intended to track bitcoin one to one. It launched on Ethereum on January 31, 2019, in a project led by Kyber Network, BitGo and Ren. BitGo was initially the sole custodian. Each WBTC is supposed to be backed by one bitcoin in reserve.

Ordinary users do not mint WBTC directly. Merchants handle minting and redemption, and users who deal directly with a merchant go through that merchant’s KYC process. According to Bitcoin Magazine, the launch-era process required a merchant to send bitcoin to the custodian and submit a minting request through an Ethereum smart contract. The custodian waited for six confirmations on the Bitcoin blockchain before approving the request. Minting and burning took place between the merchant and custodian, while the user settled with the merchant.

Eight merchants handled conversions at launch. By late 2022, BitGo CEO Mike Belshe said there were about 20 authorized merchants.

BTC held in a user-controlled wallet is the native coin itself. A WBTC balance is a token whose value and redemption depend on the reserve being maintained and merchants being able to exchange it for bitcoin. On Ethereum, WBTC is held at an address beginning with 0x; a Bitcoin wallet cannot receive funds at that type of address. Sending an asset to the wrong network or address type can leave funds inaccessible.

Users can return to BTC by redeeming through a merchant, subject to KYC, or by using a service that lists both assets. Exchanges and decentralized applications decide which wrapped tokens they support, while native BTC continues to operate on Bitcoin regardless of whether a particular exchange lists it.

Changes to WBTC custody

Until August 2024, BitGo held all three keys of the WBTC multisignature arrangement in the United States. Minting or burning required two signatures. In such a structure, no single key holder can move the reserve alone, so the distribution of the keys determines who effectively controls the token. On August 9, 2024, BitGo announced a joint venture with BiT Global, a Hong Kong-registered trust and company service provider, and retained a minority stake. By October 9, 2024, control of the bitcoin was split between Singapore, Hong Kong and the United States.

The arrangement drew criticism, much of it related to Justin Sun’s ties to BiT Global. MakerDAO moved to remove WBTC as collateral for DAI, according to Blockworks — an example of how custody concerns can influence which assets lending protocols accept.

In a March 1, 2026 announcement, BiT Global said it would manage the WBTC vaults and hold the user key and backup key, with one located in Hong Kong and the other in Singapore. BitGo retained the third key through its US technology entity and continued to operate the wallet infrastructure. The handover was scheduled to be completed by May 1, 2026. As of October 20, 2026, no public confirmation had been found that the handover was complete.

In an October 19, 2026 press release, WBTC said it was preparing to move the reserve to new custodian Bitcoin deposit addresses and exploring a multi-custodian structure to reduce reliance on a single provider. The release did not provide dates. It linked the plan to future quantum-computing risks and said that creating a new address alone would not make bitcoin quantum-resistant.

BitGo said in 2024 that both companies would continue publishing real-time proof of reserves on wbtc.network. Users considering a large conversion may wish to review that information, particularly while the address transition remains pending. Confirmation of the handover and details of the proposed multi-custodian structure are the custody developments to watch next.

Risks and practical differences

For native BTC, the primary responsibility is protecting the private keys. Wrapping adds several dependencies: the custodian holding the reserve, the smart-contract code, and the exchanges and applications that decide whether to support the token. Any of these can create a separate point of failure, in addition to user errors.

BiT Global and BitGo hold the reserve keys, so a problem involving the vault could affect whether tokens remain fully backed. Smart contracts can contain bugs, while cross-chain versions add bridge infrastructure. On August 4, 2026, BitGo announced that Chainlink CCIP would replace LayerZero as WBTC’s only cross-chain provider, as reported by Bitcoin.com News. As of October 20, 2026, no report had been found confirming that the switch was complete.

Support can also change. Coinbase suspended WBTC trading on December 19, 2024, citing its listing standards, as reported by Cointelegraph. A merchant redemption generally requires KYC, and users can lose access by using the wrong network or an incompatible address.

Wrapping is relevant when a user needs bitcoin exposure inside an Ethereum application that accepts WBTC, such as a lending market or liquidity pool. The application’s supported-token list should be checked first because some markets prefer cbBTC or tBTC. If the goal is simply to hold bitcoin for an extended period, native BTC in a wallet controlled by the user avoids the additional custodian and token dependencies. The added steps and fees of wrapping are most directly relevant when there is a specific DeFi use for the token.

Converting BTC to WBTC through ChangeNOW

One available route is ChangeNOW. Other options include a WBTC merchant or a centralized exchange that lists both assets. ChangeNOW has operated since 2017, reports more than 10 million users, lists more than 1,500 assets across 110 blockchains and offers 24/7 human support. Its standard swap does not an account or merchant onboarding. However, account-free does not mean KYC-free; compliance checks may apply under its AML/KYC policy.

ChangeNOW reports an average standard exchange time of about one minute. Its BTC/WBTC converter shows the available quote before the swap begins, offers fixed and floating rates, and generally has a minimum of about $2 worth of BTC. The service pays WBTC out on Ethereum.

The process consists of five steps:

1. Select BTC as the asset to send and WBTC as the asset to receive, then enter the amount.
2. Choose a fixed or floating rate. A fixed rate holds the quoted amount, while a floating rate moves with the market.
3. Enter an Ethereum address controlled by the recipient, because the WBTC payout is made on Ethereum.
4. Review the final amount, confirm the transaction and send BTC to the deposit address.
5. Wait for the required Bitcoin confirmations and keep some ETH in the receiving wallet for future gas fees.

A merchant may suit users prepared to complete that merchant’s KYC process. A centralized exchange may be more convenient for someone who already has an account and whose exchange still supports WBTC.

Does WBTC always trade at 1:1 with BTC?

Not exactly. Each WBTC can be redeemed for one bitcoin through a merchant, and that redemption route helps keep the two prices close. On exchanges and in DeFi pools, however, WBTC trades at its own market price. Small differences can appear when liquidity is limited or when many users unwrap at the same time, including after custody-related news.

For a large swap, users should compare the quoted WBTC amount with the BTC being sent rather than assuming the exchange will be exactly 1:1.

Can WBTC be sent to a Bitcoin address?

No. WBTC requires an address on the network where it is issued, and Ethereum wallets generally reject a Bitcoin address. Network selection is a more common source of mistakes. WBTC exists on Ethereum, Tron, Polygon and other chains. A token sent on one network remains on that network, so the receiving wallet must be configured for the same chain.

Before a swap, users should confirm which network the service uses for the payout and provide an address on that network.

Does WBTC still work after Coinbase stopped trading it?

Yes. Coinbase stopped trading WBTC on December 19, 2024, but the token continued to operate on Ethereum and other networks where it was issued. On October 20, 2026, DefiLlama still listed WBTC markets on Aave, Compound, SparkLend, Morpho and Euler on Ethereum, as well as lending pools on newer networks including Monad and Sui.

The main change has been support by trading venues and applications. Before converting, users should verify that the exchange or application still supports WBTC and compare the token contract address with the address published on the project’s official website to avoid copycat tokens.

This article is for information only and is not investment advice.