Fireblocks Exec: BTC-Based DeFi Is Premature, Wrapped BTC Is a Viable Alternative
CryptoNewsTerminal Staff06 Jun, 2024
Fireblocks Exec: BTC-Based DeFi Is Premature, Wrapped BTC Is a Viable Alternative
Shahar Madar, VP of Security at crypto custodian Fireblocks, recently stated in an interview with Crypto Briefing that he believes that “BTC-based DeFi is premature.” Madar argues that “BTC is a foundational element of the blockchain industry and ecosystem, but I’m not sure that DeFi on BTC is there yet in terms of adoption.” Fireblocks is a company that provides a platform for securing digital assets. Madar's comments suggest that Fireblocks is not currently focusing on supporting DeFi applications that are built on Bitcoin. Instead, Madar says that Fireblocks is “looking a lot at wrapped BTC,” which is a type of Bitcoin that is tokenized on another blockchain, such as Ethereum. Wrapped BTC can be used in DeFi applications on Ethereum, which has a more mature DeFi ecosystem than Bitcoin. Madar’s comments are in line with the views of other experts in the cryptocurrency industry who have argued that DeFi on Bitcoin is still in its early stages of development. However, as the DeFi ecosystem on Bitcoin matures, it is possible that Fireblocks will begin to offer support for DeFi applications that are built on Bitcoin.
