What is Gate Wrapped BTC? What is the significance of the launch of GTBTC for the industry?

The world of Crypto Assets welcomes innovative solutions. On August 21, 2025, at 20:00 (UTC+8), Gate exchange officially launched Gate Wrapped BTC (GTBTC) spot trading, supporting the trading pairs GTBTC/USDT and GTBTC/BTC.

This innovative product is fully supported by a 1:1 reserve of BTC, designed to solve the long-standing dilemma faced by BTC holders: how to earn returns while holding assets, rather than leaving them idle.

##What is Gate Wrapped BTC?

GTBTC is a type of on-chain BTC yield asset issued by Gate Web3, fully backed by the platform's BTC reserves. It is packaged as a standardized on-chain token, allowing users to participate in various yield strategies without selling their Bitcoin.

This wrapped token has been deployed on multiple major public chains such as BSC, ETH, BASE, and SOL, achieving true cross-chain interoperability. Users can obtain GTBTC by staking BTC, and the earnings during the holding period will be automatically accumulated in the form of net asset value growth.

The Operating Mechanism of GTBTC

The core mechanism of GTBTC is a 1:1 value backing. Each circulating GTBTC is fully supported by one Bitcoin, ensuring the stability of its value.

Users only need to stake BTC on Gate's "On-Chain Earning" platform to mint the corresponding GTBTC. This process does not require complicated hardware investment or technical knowledge, truly achieving a convenient experience of "one-click participation."

In terms of revenue distribution, GTBTC uses a daily automatic distribution mechanism. The base revenue is calculated in BTC, and the assets are invested in low-risk on-chain lending and liquidity strategies through the platform.

Triple income structure, with an annualized return of 3%

GTBTC offers holders an attractive yield structure. According to official information from Gate, this product provides a base yield of 2%, distributed daily in BTC.

In addition, users can receive an additional 1% reward, distributed in the form of Gate platform token GT, credited the next day. This comprehensive yield scheme brings the annualized return rate to 3%.

If a user stakes 1 BTC, the expected annual return is approximately 0.03 BTC, significantly enhancing asset utilization. This revenue model surpasses the traditional zero-return state of Bitcoin hoarding, creating continuous asset appreciation for holders.

Security and Flexibility

GTBTC is designed with full consideration of fund security and operational flexibility. The platform adopts a 100% reserve mechanism and multi-signature cold wallet custody, with assets fully traceable on-chain.

Data from May 2025 shows that Gate's reserve ratio reached 128.57%, regularly audited through an open-source Merkle Tree solution, with asset transparency leading the industry.

In terms of flexibility, GTBTC offers a redemption mechanism without a lock-in period. Users can exchange GTBTC for BTC at any time, achieving instant settlement and easily responding to market fluctuations.

The participation threshold is also extremely low, as low as 0.001 BTC, allowing retail investors to easily participate. This low threshold design greatly enhances the accessibility of the product.

The Significance of GTBTC in the Crypto Assets Industry

The launch of GTBTC represents an innovative architecture that combines CeFi and DeFi. It merges the security of centralized exchanges with the profitability of decentralized finance, finding the golden balance between the two.

A cryptocurrency fund manager commented: "Gate has found the golden intersection between CeFi security and DeFi profitability, which is precisely the balance that institutional funds value the most."

For ordinary investors, GTBTC redefines the holding benefits of BTC. It transforms BTC from a "hoarding asset" to an "income-generating asset," enabling a strategy to earn returns without selling and without fear of volatility.

GTBTC has also promoted the industry's shift towards greater transparency. As exchanges like Bitget adopt Chainlink Proof of Reserve to verify their reserves of wrapped Bitcoin tokens, the entire industry is moving towards a more transparent and accountable direction.

Market Response and Adoption Status

The market's reception of GTBTC and similar products is impressive. Within just 2 months of its launch, the BTC staking volume on Gate surged from 499 BTC to 1598 BTC.

This growth reflects the high recognition of the "stable returns + flexible exit" model by users. By June 2025, the amount staked further increased to over 1700 BTC, indicating a strong market demand for such products.

A large amount of Bitcoin is flowing into the Gate platform through on-chain channels. Data shows that over 12,000 BTC have flowed into the Gate platform through on-chain channels in the past 30 days, indicating a growing interest from institutional and individual investors in these innovative products.

##Future Outlook

Data shows that in the past two months, the BTC staking volume on the Gate platform has surged from 499 BTC to over 1700 BTC. This growth reflects the market's high recognition of the "stable yield + flexible exit" model.

GTBTC represents an innovative architecture that merges CeFi and DeFi, successfully finding the golden balance between security and profitability. As one user said: "I have never sold my BTC, but now it starts to 'pay me a salary.'"