# Why Ketju rejected tBTC

- URL: https://riadefi.com/rejections/tbtc/
- Exposure: other
- Memo version: v1
- Reviewed: 2026-08-19
- Next review: 2026-11-19

## The memo

REJECTED. tBTC is one of the better disclosed decentralized Bitcoin bridges, with rotating threshold wallets, governance delays, audits, a redemption watchtower, and a coverage pool. It is still rejected for the current advisor perimeter because it replaces native Bitcoin with an upgradeable Ethereum claim secured by an honest-majority operator assumption and bridge-governance parameters. The product is useful infrastructure, but no approved client use currently requires adding those risks instead of holding native BTC.

## What would reopen the file

- A separately approved client position requires tBTC and no native-Bitcoin implementation satisfies the same purpose
- Independent operator concentration and wallet-member selection remain within a documented honest-majority stress limit
- A proposed-size native redemption completes within the stated service level and the coverage pool can absorb the modeled wallet loss
- Any bridge, wallet-registry, DKG, watchtower, or governance exploit opens an immediate review

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Published by Ketju Research (https://ketjuresearch.com). Educational analysis only; not legal, tax, compliance, or investment advice.
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