Question 1

What is sBTC (SBTC)?

Accepted Answer

sBTC is a Bitcoin-backed asset on Stacks that represents BTC at a 1:1 ratio. It allows Bitcoin to be used in smart contracts and applications on Stacks while the corresponding BTC remains locked on the Bitcoin network.

When a user deposits BTC, the deposit is confirmed on Bitcoin and processed by the sBTC signer network. The deposited BTC is added to a Bitcoin peg wallet and an equivalent amount of sBTC is minted to the user's Stacks address. The peg wallet is controlled collectively by the sBTC signers rather than by a single custodian.

The process also works in reverse. A user requesting a withdrawal burns sBTC on Stacks and specifies a Bitcoin address. The signers then approve a Bitcoin transaction that releases the corresponding BTC from the peg wallet.

sBTC launched on Stacks mainnet with Bitcoin deposits in December 2024, with withdrawals added in April 2025. The system uses a threshold signer set to manage the BTC backing and approve deposit and withdrawal operations.

Question 2

What is sBTC (SBTC) used for?

Accepted Answer

sBTC is used to bring BTC-backed value into applications running on Stacks. It allows smart contracts written in Clarity to interact with an asset backed by Bitcoin without requiring BTC itself to operate as a smart contract token on the Bitcoin base layer.

Users can transfer sBTC on Stacks or use it in applications such as decentralised exchanges, lending markets and liquidity protocols. Developers can also build applications that accept, transfer or redeem sBTC.

The supply of sBTC is linked to BTC held by the peg system. Depositing BTC creates corresponding sBTC, while redeeming sBTC for BTC removes the redeemed sBTC from circulation. This mechanism is designed to maintain 1:1 backing between sBTC and BTC held by the system.

Question 3

Who created sBTC (SBTC)?

Accepted Answer

sBTC was developed within the Stacks ecosystem as part of work to extend Bitcoin functionality through the Stacks layer. Its design was publicly introduced in 2022 as a two-way peg mechanism between Bitcoin and Stacks.

Development has involved Stacks Core Engineering contributors and other developers working across the Stacks ecosystem. The protocol is not attributed to a single creator.

Muneeb Ali, a co-creator of Stacks, was involved in presenting the original sBTC proposal, while the design and implementation of sBTC have involved multiple contributors and organisations within the Stacks ecosystem.