hBTC
Institutional-Grade Synthetic Bitcoin
hBTC is a fully-backed, ERC-20 token that represents a 1:1 claim on native Bitcoin (BTC) custodied within institutional fund structures operated by Hilbert Group. Designed as a foundational building block of Syntetika, hBTC offers a scalable, composable, and EVM-compatible synthetic Bitcoin — purpose-built for integration into the next generation of on-chain structured finance.
While hBTC itself is not a yield-bearing instrument, it is the prerequisite asset for accessing shBTC — Syntetika’s yield-generating wrapper that passes through returns from the underlying BTC-denominated strategies. Learn more about shBTC here.
Minting and Redemption Infrastructure
hBTC is minted and redeemed through a permissioned infrastructure that bridges off-chain custody with on-chain liquidity. Users can obtain hBTC in two primary ways:
Permissionless secondary markets — hBTC is freely tradable on decentralized liquidity pools, enabling broad accessibility and capital efficiency.
Direct minting/redemption — whitelisted users from compliant jurisdictions may access Syntetika’s minting system, a coordinated mechanism that combines automated smart contracts, semi-automated workflows, and human-in-the-loop oversight. This infrastructure connects users with the regulated fund environments in which the BTC is custodied and actively managed.
Minting Process Overview:
Users deposit 1 BTC to the protocol (via native Bitcoin or EVM-based wrapped BTC).
For EVM Deposits users receive 1 hBTC atomically in return. In the case of BTC Native Deposits, Issuance is Batched and can take up to 12 hours.
Gas fee logic:
If deposited via native BTC, the protocol covers the minting gas fees, however BTC Native Transfer Fees are deducted from the hBTC Issued amount.
If deposited via wrapped-BTC (e.g., wBTC), the user pays the minting gas fees.
No fees are charged by Syntetika for minting. The process is cost-transparent and revenue-neutral to the protocol.
Upon minting, the BTC is placed with regulated custodians (Copper) and subscribed into Hilbert Group’s managed funds, where it can be deployed into the BTC Basis+ Strategy. hBTC is a 1:1 wrapped Bitcoin derivative, and does not entitle users to yield from the strategies. In order, to generate yield from the strategies users must stake their hBTC.
Risk Considerations
hBTC is designed to unify on-chain transparency with institutional-grade infrastructure. Nonetheless, as with all financial instruments, the system carries inherent risks, including but not limited to:
Smart Contract Risk
Strategy Risk
Liquidity Risk
Custodial & Operational Risk
Exchange Counterparty Risk
Market Risk
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