Custody Architecture

Custody in Bits maintains a direct link to Bitcoin, avoiding derivative strategies or asset reuse. All collateral is transparent, auditable, and recoverable via on-chain rules.

• Native BTC Vaults: Deposits on the Bitcoin mainnet are held in time-locked or secure vault addresses, with clear proof of reserves for visibility.

• Smart Contract Custody for Wrapped Assets: Tokens like wBTC and cbBTC are stored in audited smart contracts, where minting and redemption follow immutable code.

• Multichain Orchestration: The orchestrator verifies deposits and redemptions across chains, issuing tokens only after collateral confirmation and ensuring burned tokens release the equivalent BTC.

This structure enforces 1:1 collateralization for all BITS tokens, combining Bitcoin's security with audited processes and proof-of-reserves to build user confidence in yield-bearing BTC staking.