Skip to main content

Bitlayer Native BTC Asset: Overview & Technical Characteristics

Bitlayer Native BTC is a natively integrated, Bitcoin-pegged asset that exists directly at the protocol level within the Bitlayer Layer 2 blockchain. Unlike traditional ERC-20-style wrapped tokens, this asset is implemented as a first-class system currency—akin to ETH on Ethereum or BTC on the Bitcoin mainnet.

It serves two primary purposes:

  • Gas Token: Used to pay for all transaction fees on the Bitlayer network.
  • Base Asset: Serves as the foundational unit of account for DeFi protocols, vaults, and smart contract interactions.

Key Technical Features​

Native Integration​

Bitlayer Native BTC is not deployed as a smart contract token. Instead, it is managed natively by the protocol and appears directly as an account balance—similar to how Bitcoin or ETH is handled at the base layer.

18 Decimal Precision​

To maintain full compatibility with Ethereum-based DeFi applications and smart contract logic, Bitlayer Native BTC uses 18 decimal places, aligning with ERC-20 standards and DeFi composability expectations.

Gas Utility​

Bitlayer allows users to pay all network gas fees directly in Native BTC. There is no requirement to hold a separate utility token, simplifying the user experience and reducing onboarding friction.

🔗 Gas Model Reference: Bitlayer Docs – About Gas

1:1 Bitcoin Reserve Backing​

Each unit of Native BTC is backed by an equivalent amount of real BTC held in off-chain custodial vaults under a transparent 1:1 reserve model. This ensures price stability and trustless anchoring to the Bitcoin mainnet.

Bridging Architecture & Security Model​

Bitlayer’s cross-chain architecture uses a dual-bridge design to ensure secure, decentralized asset transfers.

MPC Bridge​

In the starting stage of Bitlayer, the Bitlayer team is working with multiple MPC custody platforms, including Coinbase and Sinohope (HK.1611), to secure the assets.

BitVM Bridge​

A trust-minimized virtual machine allowing for fraud-proof bridging. It supports verifiable BTC peg-in/peg-out using Bitcoin script-level validation, providing cryptographic guarantees.

By combining native protocol-level design, reserve-backed BTC anchoring, and advanced cross-chain architecture, Bitlayer Native BTC offers a secure, scalable, and composable foundation for BTC-based DeFi across chains.