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On this page
  • Merchant Responsibilities
  • Benefits of the Merchant Model
  • Becoming a Merchant
  1. Protocol

Merchant Network

Powering Bitcoin Liquidity

PreviousAttestor NetworkNextCore Security Features

Last updated 1 month ago

Merchants are the liquidity engines of iBTC, enabling institutions to mint and redeem iBTC without bridges or custodians. These KYB-verified entities—trading firms, market makers, and asset managers—facilitate secure BTCFi while ensuring compliance and deep market liquidity.

Merchant Responsibilities

  • Minting iBTC: Lock BTC in 2-of-2 multisig vaults on Layer 1, triggering iBTC minting on target chains.

  • Redeeming iBTC: Burn iBTC and co-sign PSBTs with attestors to release BTC.

  • Providing Liquidity: Integrate iBTC into DeFi platforms, OTC desks, and trading venues (e.g., Curve, Uniswap).

  • Ensuring Compliance: Undergo KYB verification via Fractl to meet regulatory standards.

Benefits of the Merchant Model

  • Bridgeless: BTC stays on Layer 1, avoiding bridge risks (e.g., Wormhole’s $326M hack).

  • Fast Transactions: Minting/redemption in 30-60 minutes vs. 3-12 hours for traditional wrapped BTC.

  • Institutional Access: Deep liquidity for DeFi and trading, supported by LPs like Bullish.

  • Compliance: KYB ensures regulatory adherence, appealing to institutions.

Becoming a Merchant

  1. KYB Verification: Pass Fractl’s compliance checks to join the network.

  2. Secure BTC: Deposit BTC into a 2-of-2 multisig vault with attestors.

  3. Mint/Redeem iBTC: Facilitate iBTC creation and redemption on supported chains.

  4. Provide Liquidity: Deploy iBTC across DeFi and institutional markets. Eligible Entities: Trading firms, custodians (e.g., Ledger, Fordefi), market makers, asset managers. .

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