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# Who holds the BTC behind wBTC, cbBTC, tBTC and LBTC?

By Jamie Cooke · Published 29 October 2026 · Updated 29 October 2026

## The short answer

Someone holds the native Bitcoin behind each wrapper: BitGo and BiT Global for **wBTC**, Coinbase for **cbBTC**, a 51-of-100 Threshold Network signer set for **tBTC**, and a security consortium plus qualified custodians for **LBTC**. **Diamond Hands by GVNR** takes Native BTC on Bitcoin L1, with no wrapping or bridging, so none of these issuers sits behind a Diamond Hands loan.

## Key facts

- WBTC's custodian "is the only entity authorized to mint and release WBTC", and the docs describe "a compliance alliance between BiT Global and BitGo" ([WBTC](https://docs.wbtc.network/how-wbtc-works/custody-and-security)).
- Coinbase's [cbBTC proof-of-reserves page](https://www.coinbase.com/cbbtc/proof-of-reserves) showed **96,419.65 BTC** in reserve against **96,408.9 cbBTC** in supply on 29 October 2026.
- tBTC wallets require "51-of-100 Signers to cooperate", and a new wallet is generated "every 14 days" ([Threshold](https://docs.threshold.network/applications/tbtc-v2/wallet-generation)).
- LBTC protocol actions require "signatures from at least 10 of the 14" consortium members, and redemption "can take up to 10 days" ([Lombard](https://docs.lombard.finance/use/faq/lbtc)).
- Every DeFi market tracked by [borrowonbitcoin.com](https://borrowonbitcoin.com/defi-loans) on 29 October 2026 took a wrapped or bridged BTC token as collateral.

## Who holds the BTC behind wBTC, cbBTC, tBTC and LBTC?

A different holder sits behind each wrapper: two custodians for wBTC, one exchange for cbBTC, a rotating signer set for tBTC and a security consortium plus qualified custodians for LBTC.

### wBTC

- **Who holds the BTC:** BiT Global and BitGo
- **Custody model:** Multi-sig cold storage
- **Mint:** Authorized merchants, with KYC/AML checks
- **Redeem:** Via a merchant after 25 Ethereum confirmations, or swap on an exchange
- **Proof of reserves:** Public dashboard of custodian wallets
- **Accepted as collateral:** Fluid 85%, Kamino 82%, Aave v3 73%

### cbBTC

- **Who holds the BTC:** Coinbase
- **Custody model:** Coinbase custody, 1:1
- **Mint:** Send BTC from Coinbase to Base
- **Redeem:** Deposit into a Coinbase account, time not stated
- **Proof of reserves:** 96,419.65 BTC against 96,408.9 cbBTC (29 Oct 2026)
- **Accepted as collateral:** Morpho 86%, Fluid 85%, Aave v3 78%

### tBTC

- **Who holds the BTC:** Threshold Network signers
- **Custody model:** 51-of-100 threshold signing, new wallet every 14 days
- **Mint:** Permissionless, from your own wallet, minutes to hours
- **Redeem:** To a Bitcoin address, time not stated
- **Proof of reserves:** No page found in the docs checked
- **Accepted as collateral:** Fluid 82%

### LBTC

- **Who holds the BTC:** Lombard Security Consortium plus qualified custodians
- **Custody model:** 10-of-14 consortium signing, plus qualified custody
- **Mint:** Send BTC to a Lombard deposit address, about 40 to 60 minutes
- **Redeem:** Via Lombard, up to 10 days
- **Proof of reserves:** On-chain attestation every 10 minutes
- **Accepted as collateral:** Morpho 84%, Euler v2 82%

### What Diamond Hands does differently

Diamond Hands keeps your Native BTC on Bitcoin L1, in its own self-custodial vault created for your loan, and you borrow UCD against it. Your BTC is never wrapped, bridged, pooled or rehypothecated. [See the full native vs wrapped comparison](https://diamondhands.credit/learn/native-btc-vs-wbtc-borrowing/).

Chains: wBTC 25+ blockchains; cbBTC Base, Ethereum, Solana and Arbitrum; tBTC Ethereum plus Arbitrum, Base, Optimism, Polygon PoS, Solana, Starknet, Sui and BOB; LBTC 10 chains. Mint and redeem fees are in the FAQ below. Sources: WBTC, Coinbase, Threshold Network and Lombard documentation; max LTV (loan-to-value: the loan as a percentage of the BTC's value, here the highest each market allows at opening) from [borrowonbitcoin.com](https://borrowonbitcoin.com/defi-loans). All checked 29 October 2026.

## Who holds the BTC behind wBTC?

BiT Global and BitGo hold the BTC behind wBTC, and WBTC's custodian "is the only entity authorized to mint and release WBTC", with merchants that "perform KYC/AML checks" before a mint ([WBTC](https://docs.wbtc.network/how-wbtc-works/mint-burn-mechanism)). The docs state that "100% of underlying native Bitcoin reserves are kept in air-gapped cold storage environments protected by multi-signature (multi-sig) configurations" ([WBTC](https://docs.wbtc.network/how-wbtc-works/custody-and-security)), and that "WBTC is a multi-chain asset available on 25+ blockchains, including Ethereum, Solana, BNB, TRON and many more" ([WBTC](https://docs.wbtc.network/overview/faq)). Custody moved to a BitGo and BiT Global joint venture in August 2024 ([BitGo](https://bitgo.com/resources/blog/bitgo-to-move-wbtc-to-multi-jurisdictional-custody-to-accelerate-global/)); [our wBTC vs Native BTC guide](https://diamondhands.credit/learn/native-btc-vs-wbtc-borrowing/) covers that change. On Diamond Hands, no custody arrangement can change under you: your BTC sits in its own isolated vault for your loan, never pooled or rehypothecated.

## Who holds the BTC behind cbBTC?

Coinbase holds it: "cbBTC is a wrapped token backed 1:1 by BTC held by Coinbase" ([Coinbase](https://www.coinbase.com/cbbtc)). BTC sent from Coinbase to Base "will automatically be converted 1:1", and holders "can unwrap and redeem a corresponding amount of the underlying asset simply by depositing the wrapped asset into their Coinbase accounts". Coinbase lists the networks as Base, Ethereum, Solana and Arbitrum, and the page gives no redemption time. It also notes that "Reserve might be higher than wrapped asset supply due to timing differences in ledger updates, delayed transactions, operational fees for blockchain transactions, or operational movements between hot and cold wallets."

## How is tBTC secured, and how permissionless is it?

tBTC is held by rotating Threshold Network wallets "using a Threshold Elliptic Curve Digital Signature Algorithm, requiring 51-of-100 Signers to cooperate", with a new wallet every 14 days ([Threshold](https://docs.threshold.network/applications/tbtc-v2/wallet-generation)), and it is the only one of the four with a permissionless mint from "a self-custodied wallet that you control" ([Threshold](https://docs.threshold.network/threshold-app/tbtc-minting-walkthrough)). The docs call it "a decentralized and trust-minimized bridge between Bitcoin and DeFi" resting on "an honest-majority assumption", and state that "The mint and redemption fee is 0.2% or 20 basis points", reinstated "on April 15, 2026" ([Threshold](https://docs.threshold.network/applications/tbtc-v2)). Threshold lists tBTC contracts on Ethereum and on Arbitrum One, Base, Optimism, Polygon PoS, Solana, Starknet, Sui and BOB ([Threshold](https://docs.threshold.network/contract-addresses/tbtc)). On Diamond Hands there is no bridge to cross, because your BTC stays on Bitcoin L1 as collateral for UCD.

## How is LBTC secured, and how long does redemption take?

LBTC is "secured by a multi-institution Security Consortium, and qualified custodians", and redemption "can take up to 10 days, covering Lombard's redemption and rebalancing cycle" ([Lombard](https://docs.lombard.finance/use/faq/lbtc)). Lombard's security page describes "a 14-member Security Consortium (OKX, Galaxy, Kraken, Wintermute, and 10 others) where every transaction requires a two-thirds majority to authorize" ([Lombard](https://docs.lombard.finance/learn/security)), and its FAQ states that "Any protocol action requires signatures from at least 10 of the 14" and names the qualified custodians as "Anchorage Digital Bank and Kraken Institutional" ([Lombard](https://docs.lombard.finance/use/faq/lbtc)). LBTC "operates across 10 chains (including Ethereum, Base, Solana, and Sui)", and the minimum deposit is "approximately 0.0002 BTC". Lombard lists its own risks as "Smart contract vulnerabilities", "Bridge infrastructure dependencies" and "Permissioned Consortium coordination" ([Lombard](https://docs.lombard.finance/learn/security)).

## Which wrappers publish proof of reserves?

Three of the four publish reserve reporting, checked on 29 October 2026. WBTC states that "The exact physical wallet addresses housing the native Bitcoin reserves managed by the custodians are publicly displayed on the WBTC transparency dashboard" ([WBTC](https://docs.wbtc.network/overview/proof-of-reserve-and-transparency-dashboard)). Coinbase publishes a live reserve-versus-supply page for cbBTC ([Coinbase](https://www.coinbase.com/cbbtc/proof-of-reserves)). Lombard's attestation "is published on-chain every 10 minutes" ([Lombard](https://docs.lombard.finance/learn/transparency/oracles)). No tBTC proof-of-reserves page was found in the Threshold docs checked.

## Why wrap BTC to borrow when you can borrow against Native BTC?

Wrapping exists because lending markets on chains such as Ethereum and Solana can only hold tokens on their own chain, so BTC has to be represented there as a token before it can be collateral. Each of the four wrappers does that job with a different holder behind it. WBTC describes itself as "a 1:1 multichain token used on smart contract chains like Ethereum, Solana, TRON and BNB" ([WBTC](https://docs.wbtc.network/overview/faq)); cbBTC, tBTC and LBTC each run the same pattern on their own list of chains, set out in the tiles above. Diamond Hands skips the token: your Native BTC stays on Bitcoin L1 as the collateral. For the borrower's side of that choice, see [what is the difference between BTC and wBTC when you borrow against it](https://diamondhands.credit/learn/native-btc-vs-wbtc-borrowing/).

## Which DeFi lending markets accept each wrapper?

Every DeFi market tracked by borrowonbitcoin.com, an independent comparison by Sypher Capital, on 29 October 2026 took a wrapped or bridged BTC token as collateral ([borrowonbitcoin.com](https://borrowonbitcoin.com/defi-loans)). Max LTV by market:

- **wBTC:** Fluid Ethereum 85%, Kamino Solana 82%, Compound v3 Ethereum 76%, Dolomite Arbitrum 75%, Aave v3 Ethereum 73%.
- **cbBTC:** Morpho Ethereum and Base 86%, Fluid Ethereum 85%, Euler v2 Ethereum 84%, Compound v3 Ethereum and Base 80%, Kamino Solana 79%, Aave v3 Ethereum and Base 78%.
- **tBTC:** Fluid Ethereum 82%.
- **LBTC:** Morpho Ethereum 84%, Euler v2 Ethereum 82%.

Variable borrow rates in the markets listed above on 29 October 2026 ranged from 4.91% to 8.38%, and the site notes that "Some protocols rehypothecate deposited collateral". Coinbase's own loans also run on a wrapper: "your BTC is converted to Coinbase Wrapped BTC (cbBTC)" ([Coinbase](https://www.coinbase.com/loans)). LTV (loan-to-value) is the loan as a percentage of the BTC's value; collateral ratio is the BTC's value as a percentage of the loan. On Diamond Hands you borrow UCD up to 66% max opening LTV (150% minimum collateral ratio), with liquidation at ~91% LTV (110% collateral ratio).

## What should you check before borrowing against a wrapper?

Five checks, each answerable from the issuer's own pages:

1. Who holds the BTC, and under which jurisdiction.
2. How many signers must agree to move it, and who they are.
3. Whether a current proof of reserves is published, and when it was last updated.
4. How redemption works, who can redeem directly, and how long it takes.
5. What the lending market allows as max LTV for that wrapper, and whether it rehypothecates collateral.

For a Diamond Hands loan, checks 1, 3 and 4 come down to one vault address on Bitcoin L1 that you can look up yourself.

## Frequently asked questions

### What happens to wrapped BTC if the custodian or issuer fails?

It depends on the wrapper, because each issuer names a different point of failure. WBTC states that "The custodian is solely responsible for issuing and redeeming WBTC". cbBTC is "held in custody by Coinbase". tBTC rests on "an honest-majority assumption" across its signers. Lombard lists "Custody and counterparty risk" for the share of backing held at "qualified custodians". A Diamond Hands loan adds no wrapped token or wrapper issuer: your BTC stays native on Bitcoin L1 in your own self-custodial vault, and liquidation risk still applies.

### How long does it take to redeem each wrapper for BTC?

LBTC can take up to 10 days, wBTC waits "for 25 confirmations on the Ethereum network" before release, and Coinbase and Threshold state no time for cbBTC or tBTC. Lombard says the cycle covers "Lombard's redemption and rebalancing cycle"; cbBTC redeems on deposit into a Coinbase account. With Diamond Hands there is nothing to redeem: repay UCD and your BTC is withdrawable after 6 Bitcoin block confirmations.

### Which wrapped BTC has a permissionless mint?

tBTC, minted from "a self-custodied wallet that you control", in anywhere "from a few minutes to several hours". wBTC minting runs through authorized merchants, cbBTC through a Coinbase account, and LBTC through Lombard.

### Which wrappers publish proof of reserves?

wBTC, cbBTC and LBTC do: a WBTC transparency dashboard, a Coinbase cbBTC reserve page showing 96,419.65 BTC against 96,408.9 cbBTC on 29 October 2026, and a Lombard on-chain attestation every 10 minutes. No tBTC proof-of-reserves page was found in the docs checked.

### Which wrapped BTC do Coinbase bitcoin-backed loans use?

cbBTC: Coinbase states that "your BTC is converted to Coinbase Wrapped BTC (cbBTC)", that its loans are powered by Morpho, and that a loan is liquidated if its LTV reaches 86%.

### What does it cost to mint and redeem each wrapper?

tBTC charges 0.2% to mint and 0.2% to redeem: "The mint and redemption fee is 0.2% or 20 basis points", reinstated on 15 April 2026 ([Threshold](https://docs.threshold.network/applications/tbtc-v2)). LBTC charges about 0.0001 LBTC to mint on Ethereum only, with no minting fee on other chains, and 0.0001 LBTC on every redemption ([Lombard](https://docs.lombard.finance/use/faq/lbtc)). WBTC and Coinbase state no mint or redeem fee for wBTC or cbBTC on the pages checked on 29 October 2026. A Diamond Hands loan has no wrapper fee to pay: the cost is a one-off 3% fee for 12 months.

## Sources

Diamond Hands product facts on this page are published at [diamondhands.credit](https://diamondhands.credit/); every third-party source below was checked on 29 October 2026.

1. WBTC Documentation, "Mint/Burn Mechanism": [docs.wbtc.network](https://docs.wbtc.network/how-wbtc-works/mint-burn-mechanism).
2. WBTC Documentation, "Custody & Security": [docs.wbtc.network](https://docs.wbtc.network/how-wbtc-works/custody-and-security).
3. WBTC Documentation, "FAQ": [docs.wbtc.network](https://docs.wbtc.network/overview/faq).
4. WBTC Documentation, "Proof of Reserve and Transparency Dashboard": [docs.wbtc.network](https://docs.wbtc.network/overview/proof-of-reserve-and-transparency-dashboard).
5. BitGo, "BitGo to Move WBTC to Multi-Jurisdictional Custody to Accelerate Global Expansion Plan": [bitgo.com](https://bitgo.com/resources/blog/bitgo-to-move-wbtc-to-multi-jurisdictional-custody-to-accelerate-global/).
6. Coinbase, "Coinbase Wrapped Assets (cbBTC)": [coinbase.com](https://www.coinbase.com/cbbtc).
7. Coinbase, "cbBTC Proof of Reserves": [coinbase.com](https://www.coinbase.com/cbbtc/proof-of-reserves).
8. Coinbase, "Crypto-backed loans, powered by Morpho": [coinbase.com](https://www.coinbase.com/loans).
9. Threshold Network Docs, "tBTC Bitcoin Bridge": [docs.threshold.network](https://docs.threshold.network/applications/tbtc-v2).
10. Threshold Network Docs, "Wallet Generation": [docs.threshold.network](https://docs.threshold.network/applications/tbtc-v2/wallet-generation).
11. Threshold Network Docs, "tBTC Minting Walkthrough": [docs.threshold.network](https://docs.threshold.network/threshold-app/tbtc-minting-walkthrough).
12. Threshold Network Docs, "Contract Addresses (chain list)": [docs.threshold.network](https://docs.threshold.network/contract-addresses/tbtc).
13. Lombard Documentation, "Lombard Security Model": [docs.lombard.finance](https://docs.lombard.finance/learn/security).
14. Lombard Documentation, "LBTC FAQ": [docs.lombard.finance](https://docs.lombard.finance/use/faq/lbtc).
15. Lombard Documentation, "Oracles": [docs.lombard.finance](https://docs.lombard.finance/learn/transparency/oracles).
16. borrowonbitcoin.com (Sypher Capital), "Borrow Against Bitcoin in DeFi: DeFi Market Comparison": [borrowonbitcoin.com](https://borrowonbitcoin.com/defi-loans).

## Related

Diamond Hands guides that go deeper on custody, cost and risk:

- [Open the Diamond Hands app](https://app.diamondhands.credit/)
- [What is Diamond Hands by GVNR?](https://diamondhands.credit/learn/what-is-diamond-hands-by-gvnr/)
- [What is the difference between BTC and wBTC when you borrow against it?](https://diamondhands.credit/learn/native-btc-vs-wbtc-borrowing/)
- [Where does my Bitcoin sit when I borrow on Diamond Hands?](https://diamondhands.credit/learn/where-does-my-bitcoin-sit/)
- [Is my BTC rehypothecated on Diamond Hands?](https://diamondhands.credit/learn/is-my-btc-rehypothecated/)
- [What is UCD, the Bitcoin-backed stablecoin?](https://diamondhands.credit/learn/what-is-ucd-bitcoin-backed-stablecoin/)
- [How does the 3% mint fee on Diamond Hands work?](https://diamondhands.credit/learn/is-the-3-percent-fee-an-apy/)
- [How do I borrow against Bitcoin without selling it?](https://diamondhands.credit/learn/borrow-against-bitcoin-without-selling/)
- [What happens to my loan if the Bitcoin price falls?](https://diamondhands.credit/learn/what-happens-if-bitcoin-price-falls/)

## About the author

### Jamie Cooke

Partnerships and Outreach, GVNR. [LinkedIn](https://www.linkedin.com/in/jamie-cooke-4441b143)

Jamie Cooke leads Partnerships and Outreach at GVNR, the team behind Diamond Hands. He has been active in DeFi since 2020. He spent his first couple of years learning how on-chain lending, stablecoins and Bitcoin infrastructure actually work, before joining GVNR to build its partnerships and community. He writes about Bitcoin-backed borrowing in plain terms, so people can understand how it works and how to keep control of their BTC.