HBTC is a crypto asset that was introduced as an ERC-20 token on the Ethereum blockchain. It functions as a wrapped form of Bitcoin (BTC), primarily bridging the gap between Bitcoin and decentralized finance (DeFi) ecosystems. The project aims to offer users the ability to use Bitcoin with the efficiency and functionality that decentralized applications (dApps) on Ethereum provide.
HBTC, short for Huobi BTC, was founded in 2020 by Huobi Global, a digital asset exchange. Its creation followed an increasing demand for interoperable assets, as Bitcoin—despite being the most well-known cryptocurrency—was limited in its use within the expanding Ethereum-based DeFi space. Wrapped Bitcoin (WBTC) had emerged earlier as a similar solution, but HBTC aimed to provide an alternative that brought additional liquidity and user options, particularly linked to Huobi's vast user base.
The process for minting HBTC begins by depositing Bitcoin with a custodian, which is typically a trusted institution or platform such as Huobi. The corresponding amount of HBTC tokens is then issued 1:1 against that Bitcoin deposit. HBTC can then be used within the Ethereum ecosystem in a similar way that Ethereum's native token (ETH) or stablecoins like USDC are commonly deployed, allowing users to participate in decentralized exchanges (DEXs), lending protocols, and liquidity pools.
What made HBTC stand out initially was its backing by Huobi, a top-tier crypto exchange. By maintaining strict transparency, with regular audits and public reserve addresses for their Bitcoin custody, HBTC sought to instill confidence in users and distinguish itself in a crowded space of wrapped Bitcoin tokens.
Over time, however, HBTC has been one of several wrapped Bitcoin assets competing for users within the rapidly growing decentralized market. Its reliance on the Ethereum network has limited HBTC to Ethereum-based applications, but its exchange backing gives it a stable foundation in terms of liquidity and custodial oversight.
As the broader cryptocurrency ecosystem continues to evolve, HBTC’s history reflects both the growing demand for Bitcoin interoperability with blockchain ecosystems and the competitive nature of DeFi solutions beyond native Bitcoin applications.
