Babylon: WBTC and cbBTC TVL Breaks $14 Billion, Native BTC On-Chain Lending Becomes a Trend

Gate News reports that on March 23, Babylon issued a statement stating that the demand for Wrapped BTC (WBTC) and cbBTC has been validated by the market. Currently, the total value of active WBTC and cbBTC on Ethereum exceeds $14 billion, indicating that BTC holders’ interest in lending functions continues to grow.

On the Aave platform, the supply of WBTC reaches 408,000 tokens, worth approximately $2.9 billion; cbBTC supply is 261,000 tokens, valued at about $1.8 billion. The total value locked (TVL) on Aave has surpassed $24 billion, demonstrating not only the existence of lending demand but also its large scale, with increasing market demand for on-chain liquidity of Bitcoin.

Babylon emphasizes that trustless Bitcoin vaults can directly provide convenient lending services to native BTC holders without relying on wrapped tokens, cross-chain bridges, or leaving the Bitcoin network. This means users can directly use native BTC on Ethereum for lending, with the borrowed funds fully sourced from the Bitcoin network, preserving the asset’s native and decentralized characteristics.

Analysts note that this development marks a maturation in BTC holders’ demand for on-chain financial services and the further refinement of cross-chain lending models. With the launch of native Bitcoin lending tools, investors can participate flexibly in the decentralized finance (DeFi) ecosystem while maintaining the security of their BTC assets, optimizing returns.

In the future, as lending protocols and trust-minimization tools become more widespread, the application of Bitcoin on smart contract platforms like Ethereum will expand further, boosting market confidence in BTC’s liquidity and collateralization capabilities. This trend shows that Bitcoin is not only a store of value but is also becoming a key driver of on-chain financial activities.