FAQs
Your iBTC Questions, Answered
New to iBTC or looking for technical clarity? Our FAQs cover everything from general concepts to regulatory and operational details, ensuring you have the answers to thrive in BTCFi. Let’s dive into the most common questions.
General
What is iBTC?
iBTC is a secure, decentralized wrapped Bitcoin solution for institutions and individuals. It enables trust-minimized DeFi access across multiple chains without centralized custodians or bridges. Using PSBTs (Partially Signed Bitcoin Transactions) and Chainlink Proof of Reserve (PoR), iBTC ensures transparency and 1:1 BTC backing.
How does iBTC work?
Institutions & Merchants: Self-wrap BTC into iBTC via multisig vaults, minting on chains like Ethereum or XRPL.
Individuals: Swap BTC or stablecoins for iBTC on DEXs (e.g., Curve, Uniswap).
Process: Lock BTC, attestors verify, mint iBTC, redeem via burn.
Why use iBTC over other wrapped Bitcoin tokens
Trust-Minimized: No centralized custodians, unlike wBTC’s BitGo reliance.
Transparency: On-chain PoR verification, not third-party audits.
Multi-Chain: Ethereum, Arbitrum, XRPL—the only wrapped BTC on XRPL.
How can I earn yield with iBTC?
iBTC unlocks DeFi strategies like staking (Symbiotic), lending (Aave), and liquidity provision (Curve). Yields are user-driven, not token-inflated, ensuring sustainability. Contact [email protected] for institutional yield strategies.
Regulatory & Compliance
What are the regulatory requirements for using iBTC?
iBTC is a decentralized protocol and doesn’t hold user BTC. Merchants and institutions must comply with their jurisdiction’s regulations (e.g., KYB for merchants). iBTC’s trust-minimized model aligns with compliance needs.
Does becoming an iBTC merchant require KYB/KYC?
Yes, merchants undergo a vetting process, including Know Your Business (KYB) checks via Fractl and additional financial and compliance assessments, akin to eligibility for Active Participants in ETFs. This ensures network integrity and alignment with institutional standards. Retail users face no KYC for swaps.
What is the status of iBTC’s merchant program?
iBTC is transitioning to a refined merchant model with enhanced vetting criteria, developed in collaboration with our partners. The updated requirements, currently under technical due diligence, will further align with institutional-grade standards. Contact [email protected] for details.
Is iBTC considered a security?
No, iBTC is a commodity-backed asset, as BTC is recognized as a commodity by regulatory bodies like the CFTC. It functions as a utility token, not a security.
How does iBTC address financial sector compliance challenges?
iBTC’s trust-minimized custody lets institutions retain BTC control. Tools like Chainlink PoR and KYB onboarding ensure transparency and regulatory adherence.
Operational & Technical
How does iBTC maintain its 1:1 peg with BTC?
iBTC is backed by BTC in 2-of-2 multisig vaults on Layer 1, with Chainlink PoR verifying reserves in real-time. Attestors ensure no over-minting.
What are the smart contract risks associated with iBTC?
iBTC minimizes risks by using PSBTs for minting, avoiding Bitcoin-side smart contracts. Ethereum contracts (e.g., AttestorManager) are audited regularly, with health monitoring to catch anomalies.
How does iBTC handle onboarding for large Bitcoin holders (whales)?
Self-Mint: Mint via merchants.
Merchant Swap: Use a KYB-verified merchant to swap into iBTC.
Support: Contact [email protected] for tailored onboarding.