The cryptocurrency world 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 backed by Bitcoin reserves at a 1:1 ratio, aimed at solving the long-standing dilemma faced by Bitcoin holders: how to earn returns while holding assets, rather than letting them remain idle.
What is Gate Wrapped BTC?
GTBTC is Gate Web3 A type of on-chain BTC yield-bearing asset issued, fully backed by the platform’s BTC reserves. It is wrapped as a standardized on-chain token, allowing users to engage 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 operational 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 Bitcoin on Gate’s "On-chain Earning" platform to mint the corresponding GTBTC. This process requires no complex hardware investment or technical knowledge, truly achieving a convenient experience of "one-click participation."
In terms of profit distribution, GTBTC adopts a daily automatic distribution mechanism. The basic earnings are calculated in BTC, and assets are invested through the platform into low-risk on-chain lending and liquidity strategies.
Triple yield structure with an annualized rate of up to 3%
GTBTC offers holders an attractive yield structure. According to official information from Gate, this product provides a 2% base yield, paid out daily in BTC.
In addition, users can also receive an additional 1% reward, distributed in the form of Gate platform token GT, which will be credited the next day. This comprehensive yield plan brings the annualized yield rate to 3%.
If a user stakes 1 BTC, the expected annual yield is approximately 0.03 BTC, significantly enhancing asset utilization. This yield model surpasses the zero-yield state of traditional Bitcoin hoarding, creating continuous asset appreciation for holders.
Safety and flexibility combined
GTBTC has been 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 being fully traceable on-chain.
As of May 2025, Gate’s reserve rate reached 128.57%, regularly audited through the Merkle Tree open-source solution, with asset transparency leading the industry.
In terms of flexibility, GTBTC offers a redemption mechanism without a lock-up period. Users can exchange GTBTC for BTC at any time, achieving instantaneous settlement and easily coping with market fluctuations.
The participation threshold is also very low, starting at 0.001 BTC, allowing retail investors to easily participate. This low threshold design greatly enhances the accessibility of the product.
The significance of GTBTC to the cryptocurrency industry
The launch of GTBTC represents an innovative architecture that integrates CeFi and DeFi. It combines the security of centralized exchanges with the profitability of decentralized finance, finding a golden balance between the two.
A cryptocurrency fund manager commented, "Gate has found the golden intersection between CeFi security and DeFi profitability, which is the balance that institutional funds value the most when entering the market."
For ordinary investors, GTBTC redefines the holding benefits of Bitcoin. It transforms Bitcoin from a "hoarding asset" into a "yield-bearing asset," achieving a strategy that allows for earning returns without selling and without fear of volatility.
GTBTC is also driving the industry towards greater transparency. As exchanges like Bitget adopt Chainlink Proof of Reserve to validate their wrapped Bitcoin token reserves, the entire industry is moving towards a more transparent and responsible 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 users’ high recognition of the "steady returns + flexible exit" model. By June 2025, the staking amount further increased to over 1,700 BTC, indicating 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 such 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 returns + 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 has started to ‘pay me a salary.’
