This page is for information purposes only. Certain services and features may not be available in your jurisdiction.

What is xBTC? Bitcoin reimagined for onchain natives

Magic internet money.

Digital gold.

And now, a national reserve asset.

Bitcoin’s dominance in the crypto space is unmatched. However, the lack of interoperability and smart contract functionality have long hindered its utility in the onchain realm.

Until now. Enter xBTC; a tokenized version of bitcoin designed to bridge the gap between access and function.

Here's everything you need to know about xBTC.

What are wrapped tokens?

Wrapped tokens are digital representations of an underlying asset that allow it to be used on different blockchain networks than its native one. This process involves locking the original asset and minting an equivalent wrapped version on the target chain, enabling cross-chain functionality and increased liquidity.

For coins with no smart contract functionality like bitcoin, wrapped bitcoin is a welcome solution. By resolving the inability to directly participate in DeFi ecosystems built on blockchains like Ethereum and Solana, bitcoin owners now have the ability to trade on DEXs, lend their wrapped bitcoin, and use it as loan collateral.

What is xBTC?

xBTC is a wrapped version of bitcoin, fully backed 1:1 by BTC reserves held securely in custody by OKX. It enables bitcoin to be used across multiple blockchains, unlocking new utility and interoperability. With xBTC, BTC holders can go beyond simply holding—they can participate in DeFi ecosystems and explore new ways to generate yield while still maintaining bitcoin exposure.

Key features of xBTC

1:1 collateralization

Unlike traditional financial instiutions that utilize the fractional reserve ratio for reserve requirements, every xBTC is backed by BTC held in OKX’s reserves. This 1:1 collateralization can be verified with proof of reserves that transparently shows existing crypto reserves in detail. By adhering to global custody standards, OKX minimizes counterparty risk and dangers of depegging so you can feel safe knowing your deposited BTC safely secured in institutional-grade wallets.

No wrapped token minting or burning fees

Tired of extra costs when moving BTC onchain? With xBTC, there are no fees for minting or redeeming—just pay the standard gas fees on the destination blockchain. Since these are typically just fractions of a cent, you can interact freely with DeFi apps without worrying about added friction or expense.

Multi-chain support

Keen to make your wrapped BTC work for you while you earn yields? xBTC will initially be available on booming onchain ecosystems like Sui, Aptos, and Solana so you can make use of top DEXs and lending protocols to provide liquidity or borrow against xBTC as collateral. This will be followed up with plans to expand to other popular networks in the near-future.

Transparent interoperability

xBTC allows BTC to be used on networks like Sui, Aptos, and Solana by giving OKX custody of the underlying BTC. In this model, users exchange direct BTC self-custody for xBTC to gain access to DeFi utility. In exchange, OKX provides institutional-grade security and verifiable 1:1 proof of reserves, offering users a secure and transparent experience with minimized counterparty risk.

Final words

xBTC represents a paradigm shift for bitcoin holders, combining BTC’s store-of-value appeal with the versatility featured in smart contract enabled-blockchains. By eliminating cross-chain friction and unlocking DeFi opportunities, OKX’s solution positions Bitcoin as a dynamic asset in the future where interoperability is vital. As the crypto ecosystem evolves, xBTC could become a cornerstone for liquid interoperability, offering users the best of both worlds with Bitcoin’s security and the innovation of decentralized finance.

Has our guide to xBTC piqued your curiosity? Check out our in-depth guide to depositing and withdrawing xBTC so you're aware of the step-by-step process of minting and redeeming xBTC. Additionally, if you're keen to learn more about our wrapped BTC token and the existing excitement surrounding it, our xBTC page has you covered.

If you're more of a visual learner, don't fret—our video guide to the entire xBTC withdrawal and depositing process will be up your alley.

Disclaimer
This content is provided for informational purposes only and may cover products that are not available in your region. It is not intended to provide (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold crypto/digital assets, or (iii) financial, accounting, legal, or tax advice. Crypto/digital asset holdings, including stablecoins, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding crypto/digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. Information (including market data and statistical information, if any) appearing in this post is for general information purposes only. While all reasonable care has been taken in preparing this data and graphs, no responsibility or liability is accepted for any errors of fact or omission expressed herein.

© 2025 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less of this article may be used, provided such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state: “This article is © 2025 OKX and is used with permission.” Permitted excerpts must cite to the name of the article and include attribution, for example “Article Name, [author name if applicable], © 2025 OKX.” Some content may be generated or assisted by artificial intelligence (AI) tools. No derivative works or other uses of this article are permitted.

Related articles

View more
OKX Pay Thumbnail
Wallets
Self-custody

How People Use OKX Pay Every Day

Introduction Crypto isn’t just for investors or tech enthusiasts anymore. With OKX Pay, crypto has become a practical solution to everyday problems. Whether you're managing money across borders, running a small business, or simply splitting a restaurant bill, OKX Pay can make your financial life easier.
Aug 29, 2025
OKX Pay Thumbnail
Wallets
Self-custody

The Coolest Way to Start Using Crypto

Introduction Crypto can seem intimidating at first glance—complex terms, complicated setup, and endless fees. But what if crypto was as simple and intuitive as using your favorite everyday payment app? OKX Pay was created exactly for this. It gives you easy access to crypto without any confusion, complicated jargon, or hidden fees.
Aug 29, 2025
OKX Pay Thumbnail
Wallets
Self-custody

What Is OKX Pay, and How Does It Work?

Introduction Sending money across the globe can often be slow, expensive, and complicated. OKX Pay solves this problem by offering instant, fee-free crypto transfers that feel as simple as sending a text. It combines the ease of everyday apps with the control and security of crypto.
Aug 29, 2025
OKX Pay Thumbnail
Wallets
Self-custody

How OKX Pay Makes Self-Custody Easy and Safe

Introduction Managing crypto should never feel daunting. Traditional self-custody solutions may require remembering long, complex seed phrases and navigating confusing interfaces. OKX Pay makes crypto easy and secure: no seed phrases, no complexity, just smooth control over your assets.
Aug 29, 2025
Cómo fondear tu cuenta de OKX Argentina
Deposit & withdrawal

How to Fund Your OKX Account in Latinamerica

Aug 28, 2025
Beginners
usdg unified orderbook thumbnail
OKX
Trading
Stablecoins

How The Unified Order book Impacts Traders

How the Unified Order Book Impacts Every Trader The crypto market is always evolving, but some upgrades don’t just improve performance, they redefine how everyone trades. The Unified Order Book is one of those upgrades.
Aug 20, 2025
Beginners
2
View more