tBTC Launches on Starknet Reducing Bitcoin Transaction Fees by 99%

tBTC, a trust-minimized protocol developed by Threshold Network, has launched on Starknet, a decentralized zero-knowledge rollup. This launch enables Bitcoin holders to trade, borrow, and execute complex DeFi strategies at a significantly reduced cost of just $0.01 per transaction, compared to the average Bitcoin transaction fee of $1.49. This development marks a significant step in expanding Bitcoin’s role in the multi-chain DeFi ecosystem.

With the integration of tBTC on Starknet, users can now mint tBTC directly on Starknet via the Threshold UI, allowing for seamless onboarding of native BTC without the need for custodians or intermediaries. This process ensures that users maintain full custody of their assets while participating in DeFi activities. The ultra-low transaction fees on Starknet make it economically viable to execute small to large-scale trades, deploy capital in DeFi strategies, and use Bitcoin as a source of capital for lending or borrowing.

MacLane Wilkison, Co-Founder of Threshold Labs, highlighted the transformative potential of this integration, stating that Bitcoin on Starknet becomes more than just a store of value. It can now be used for a wide range of DeFi activities, including high-frequency trading and as collateral for borrowing, making it a more functional and versatile asset within the DeFi ecosystem.

The launch of tBTC on Starknet addresses the current limitations of Bitcoin’s mainnet, where high transaction fees and slow confirmation times make complex DeFi operations uneconomical. In contrast, tBTC on Starknet offers instant confirmation, a throughput of 857 transactions per second (TPS), and minimal transaction fees, making Bitcoin a more efficient and cost-effective asset for DeFi activities.

Threshold Network is building on this foundation by integrating tBTC with Starknet’s prominent protocols. Users can now engage in DEX trading on Ekubo, a native Starknet DEX, enabling deep and efficient trading of tBTC against select pairs with minimal slippage. Additionally, upcoming integrations with Vesu will allow users to borrow against their tBTC positions without relinquishing custody, mirroring the success of tBTC on Ethereum where over 25% of the supply is locked in Aave.

The integration of tBTC on Starknet opens up new use cases for Bitcoin in DeFi, including streaming payments, automated strategies, and Bitcoin-powered gaming. These applications leverage the low-cost, instant nature of tBTC transactions to enable microtransactions and smart contract systems that were previously infeasible due to high gas fees.

Looking ahead, Threshold Network plans to expand the functionality of tBTC on Starknet with integrations for perpetuals and collateralized debt protocols, yield vaults, and collaborations with major liquidity providers and oracle networks. These developments will further enhance the utility of Bitcoin in DeFi, enabling more complex and risk-managed leverage options, simplified liquidity management, and accurate price feeds.

Damian Chen, Head of Growth at the Starknet Foundation, emphasized the transformative impact of this launch, stating that it fundamentally changes Bitcoin’s role in DeFi. Developers are now revisiting ideas that were previously killed by high fees, making Bitcoin at scale finally possible on Starknet.

Security is a key aspect of the tBTC protocol, which uses threshold cryptography to ensure that multiple independent nodes secure Bitcoin deposits. This approach eliminates the need for corporate custody and ensures that no single entity controls the funds. Users maintain full sovereignty over their Bitcoin while accessing DeFi, with no KYC requirements. Starknet’s zero-knowledge proofs provide the necessary scaling, compressing thousands of transactions into one proof while maintaining Ethereum’s security guarantees.

Starknet users can access tBTC through direct minting from BTC to tBTC on Starknet or by bridging existing tBTC from Ethereum L1 to Starknet via the official StarkGate bridge. With $547 million in TVL, 193 active protocols, and over 11,000 daily users, Starknet has rapidly emerged as a hub for scalable, composable DeFi.

Despite Bitcoin’s $2.1 trillion market cap, its presence in DeFi remains minimal, with just $6.3 billion locked in decentralized protocols. As transaction costs decline and access barriers are removed, the Bitcoin DeFi market has the potential to grow significantly, unlocking new utility beyond passive holding and into active, composable participation across DeFi. tBTC, combined with Starknet’s proven capacity, positions Bitcoin DeFi for substantial growth and scalability.

Threshold Network powers tBTC, the leading decentralized, 1:1 Bitcoin-backed asset for DeFi. Secured by a 51-of-100 threshold signer model, tBTC enables BTC to move across multiple chains, including Ethereum, Solana, Arbitrum, and BOB, without requiring custodians or compromising security. With $450M+ in TVL and $3.6B in bridge volume since 2020, Threshold delivers the most robust trust-minimized Bitcoin infrastructure in DeFi.

Starknet, a permissionless, decentralized zero-knowledge rollup, offers high scalability, low fees, and fast finality. Powered by STARK proofs and developed by StarkWare, Starknet is designed for long-term composability, security, and developer flexibility. This integration marks a significant milestone in the evolution of Bitcoin’s role in the multi-chain DeFi ecosystem, paving the way for more innovative and efficient use cases in the future.