Developers of the Cosmos blockchain network have merged Bitcoin with the Nomic IBC protocol, allowing users to receive wrapped nBTC tokens for use within the Cosmos ecosystem.
Developers of the DEX Osmosis have merged the first cryptocurrency with the IBC protocol and plan to release a wrapped BTC token that will allow easy and quick Bitcoin transfers to the Cosmos network. According to the press release, users will be able to transfer BTC to the Cosmos network via Osmosis’ Nomic cross-bridge for 1.5% of the transaction amount.
Thus, the DEX users can get Nomic Bitcoin (nBTC), a wrapped Bitcoin token compatible with the Cosmos ecosystem and pegged to the original BTC price, via the Osmosis Zone app. nBTC can be bought, sold, and used to provide liquidity on Osmosis. It’ll also be usable in over 50 apps related to Cosmos.
It’ll be possible to wrap BTC into nBTC from October 30. The team is preparing an update for October 27. Initially, one will also be able to send BTC via the Kujira DeFi protocol. nBTC thus received can be used as collateral for the issuance of the USK stablecoin and for lending in the ecosystem. Over time, the functionality of nBTC will be expanded.
It’s worth noting that in the initial stages of the nBTC launch, users will be able to wrap no more than 21 BTC as the bandwidth of the Nomic cross-chain bridge will be severely limited for security reasons.
According to Sunny Aggarwal, Co-Founder of Osmosis, the Cosmos ecosystem could become the application layer of the Bitcoin network, opening up new DeFi opportunities for users of the first cryptocurrency. Matt Bell, CEO of Turbofish, the developer of the Nomic blockchain network, believes that the Cosmos ecosystem can evolve even faster thanks to wrapped BTC, and Nomic can be the most secure cross-chain bridge for BTC.
Almost half of crypto users prefer BTC. Moreover, the first cryptocurrency has become one of the preferred means to protect against risks in case of a possible U.S. default, along with treasury bonds and gold.
