Threshold Says tBTC Fully Backed With 4,320 BTC as Bridge Stays Paused

AI Market Summary

Threshold's tBTC bridge remains paused despite full backing, while Aave froze its tBTC reserve and Morpho cut liquidity. The freeze blocks new deposits and borrowing but permits repayments and withdrawals, signaling contained protocol risk while highlighting DeFi liquidity and contagion concerns for Bitcoin-based assets.

Impact level

● Medium

Affected assets

BTC/USDT+0.51%

AI Insight · BTC/USDTAI Insight

▼ Bearish

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Threshold Network said on Oct. 31 that tBTC remains fully backed, with 4,320 BTC in bridge wallets against about 4,185 tBTC in circulation, while new minting and redemptions stay paused. The team said no funds were lost and no unauthorized minting was seen, without giving a restart date. Aave's Ethereum Core tBTC reserve, holding about $136.5 million, remained frozen.

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