CBTC FAQs

CBTC FAQs

FAQs

What is CBTC?

CBTC is a wrapped Bitcoin (1:1 backed) on the Canton network, designed for institutional use cases. It's built by BitSafe (makers of iBTC) and will support liquidity provision, and integration with derivatives marketplaces (e.g., the Canton-QCP collaboration). It's privacy-enabled and secure, using Schnorr/FROST and Taproot-based signatures along with a decentralized network of Attestors for the bridge.

Do I need a Canton validator to participate?

Yes, you need to have a live validator and a validator address on Canton mainnet to receive credentials

What are the transaction fees?

Current transaction fees are 5 basis points for minting/burning and 3 basis points for transferring/locking/unlocking

Who operates the CBTC bridge nodes?

9 pre-screened external node operators (e.g., P2P, Everstake) with more than $1B in AUM and 1 BitSafe node, run both Bitcoin and Canton nodes

Do I need special wallets?

Bitcoin side: No special setup required - any wallet that can send BTC to a Taproot address (e.g., Sparrow, Ledger Live, BlueWallet) will work when you deposit into the bridge.

For Canton: Yes. After your Bitcoin is bridged, CBTC lives on Canton, so you’ll need a wallet that understands Canton tokens. Today that list is short - the Canton CLI is fully supported, with additional wallets coming as the ecosystem matures.

Are there any KYC/KYB requirements?

No additional KYC/KYB is required between app creators because acceptance into Canton requires sponsorship by a Supervalidator

Will running a CBTC Attestor Node make me a custodian of customer assets or allow me to sweep or transact against customer funds?

Running an Attestor Node does NOT make you a custodian of any CBTC assets Here's what Attestor Nodes actually do:

• Verify Bitcoin transactions and CBTC mint/burn operations

• Participate in Canton's governance system as a "signing party"

• Submit confirmations for deposits and withdrawals through automated processes

• Help maintain the decentralized security of the CBTC network What Attestor Nodes do NOT do:

• Hold or custody any CBTC tokens

• Store customer private keys

• Control any customer assets The key distinction: Attestors verify transactions; they don't custody assets. You can participate in the CBTC rewards system without any of the custodial concerns.

What future opportunities are available?

Following are some of the future opportunities with Canton and CBTC:

• Node operator rewards: As a validator securing CBTC, you'll earn additional rewards from minting activity

• Customer minting: You can potentially mint CBTC on behalf of customers, earning Canton coin rewards to share with them

• Utility-based rewards: Canton is shifting toward rewarding apps that create actual trading and financial activity, which should benefit CBTC holders

What if I have more questions?

Email [email protected] or join the community