The VerifiedX Foundation has rolled out vBTC.b on Base, with backing from Fireblocks. The goal is to bring Bitcoin’s reputation as “digital gold” and its globally recognized brand into the world of decentralized finance (DeFi) and institutional self-custody solutions.
As outlined in a press release sent to Bitcoin Magazine, VerifiedX is the first “Non-Synthetic Bitcoin Asset” that comes with built-in native Bitcoin redemption. It works seamlessly with Base, Coinbase’s rapidly growing EVM blockchain and DeFi platform. “vBTC is now live as a canonical asset on Base under the ticker vBTC.b and is officially listed inside the Fireblocks platform with self-custody enabled.”
While the Base integration opens vBTC up to everyday users, the Fireblocks partnership is what draws institutional attention. Fireblocks is one of the top digital asset custodians serving institutions and carries significant brand weight in Western markets.
Data from DefiLlama shows that the DeFi market currently holds more than $80 billion in total value. Despite Bitcoin’s dominance in the broader crypto space, its footprint in DeFi is still modest — only about $5 billion in Bitcoin value sits across the entire crypto-DeFi ecosystem, compared to over $43 billion for Ethereum.
VerifiedX sees a clear appetite for Bitcoin within DeFi, particularly from institutions that want self-custody options meeting regulatory compliance requirements while also offering protection from on-chain surveillance and front-running. VerifiedX was built with these demands in mind, moving past the limitations of conventional bridges, synthetic Bitcoin wrappers, and trusted federations.
Their innovative method relies on a large, open network of FROST multiparty computation (MPC) nodes that many consider a new benchmark for cross-chain technology. The entire VerifiedX tech stack has undergone “an institutional full-stack audit via Halborn.”
Bitcoin holders can look forward to deeper DeFi integration through vBTC, unlocking new use cases like “programmable settlement, collateralized borrowing, yield strategies, and AI-agent commerce,” among other possibilities — all powered by a far more decentralized and self-custody-focused cross-chain approach than anything previously available. The VerifiedX chain also features zero-knowledge proof technology natively, giving users privacy when moving BTC in and out of the system and shielding them from on-chain analytics.
FROST Multi-Party Computation and Self-Custody
The VerifiedX network takes advantage of cryptographic advances rooted in Bitcoin’s taproot upgrade. Every VerifiedX validator operates a FROST multiparty computation (MPC) server — a sophisticated and scalable version of Shamir’s secret sharing that was developed independently of VerifiedX.
FROST, short for “Flexible Round-Optimized Schnorr Threshold Signatures,” enables technology comparable to Bitcoin’s multi-signature addresses but without creating a visible on-chain trace. Addresses generated through FROST are cryptographically identical to standard taproot addresses, offering meaningful privacy advantages.
Where FROST truly shines is in its threshold signature mechanism, which lets participants add or remove key shares from the group (provided a majority consents) without needing to broadcast on-chain transactions. By keeping this computation off-chain, many more parties can take part in the security model than was previously feasible, all while minimizing costs and leaving no trace on the Bitcoin blockchain. Once enough shards surpass the threshold in this MPC process, a valid Bitcoin transaction can be constructed.
New validators can join the public VerifiedX network at any time, though there are a few steps involved. Participants must sign several transactions on the VerifiedX blockchain and hold 5,000 VFX — the native token of the chain. Once the required on-chain transactions are completed, the network accepts the new validator and their shard, raising the number of parties needed to meet the threshold. The outcome is a dynamic, large-scale multi-signature Bitcoin wallet that sidesteps corporate federated whitelists or small, high-trust custodians. If a member withdraws their 5,000 VFX from the address, their node is dropped from the active validator set, and the FROST scheme recalibrates automatically.
It’s worth noting that while this represents a major leap in decentralization, the public network model doesn’t technically meet the strict definition of on-chain self-custody, since Bitcoin holders don’t have unilateral withdrawal rights to the underlying BTC. In a worst-case scenario where the entire VerifiedX public FROST pool went offline, vBTC holders would be unable to redeem their Bitcoin. That said, the setup is arguably far more decentralized than existing alternatives, which often depend on simple single-digit multisig addresses, synthetic Bitcoin tokens backed by altcoins, or trusted federations. During the current bootstrap phase, there are over 100 active validators, and the number could technically grow by more than an order of magnitude.
That said, VerifiedX’s technology does pave the way for a self-custodied route from Bitcoin to DeFi. Jay Pollak, Head of Strategy and Business Development at the VerifiedX Foundation, explained that the protocol can let users create their own “self-sovereign smart contracts” — complete with shards and a corresponding smart contract that mints 1:1 collateralized vBTC entirely under their control. This specific feature will be detailed further and made more user-friendly in upcoming updates. Such a self-sovereign smart contract arrangement would arguably satisfy the self-custody standard, opening a direct on-chain path from Bitcoin to the DeFi ecosystem under the same vBTC ticker.
The VFX Governance Token
VFX, the governance token powering the VerifiedX blockchain, plays a vital role in the system’s security — particularly for the public FROST pool. There needs to be some cost for joining as a validator to prevent an influx of fake accounts from overwhelming the network. Under the current protocol, validators are required to hold 5,000 VFX. However, Pollak indicated this figure is very likely to decrease soon.
VFX’s price has climbed sharply since January 2025, though Pollak noted that Bitmart is currently the only exchange listing it. He expects improved price discovery as VFX reaches larger markets and gains more liquidity. He was firm in stating that VFX is strictly a governance token and isn’t intended to compete with Bitcoin in any way. At present, VFX trades around $69, making the validator entry cost quite steep. But Pollak also mentioned the required VFX amount is expected to drop significantly soon, which would make the self-sovereign smart contract self-custody route much more accessible.
A total of 200 million VFX were minted in 2023 when the protocol launched, with 67.5 million allocated to the VerifiedX Foundation and the remainder distributed through mining for active participation and testnet involvement. The Foundation currently holds roughly 32.3 million VFX. According to Pollak, the lifetime supply of VFX stands at approximately 169.9 million, with the remaining 30 million effectively burned in the early days for security purposes. The circulating supply is considerably smaller, he added, since testnet-era mints are restricted and can only transfer small quantities at a time, “subject to an on-chain unlocking schedule, limiting sales to no more than the burn rate per block.”
Bitcoin Magazine has a financial relationship with The VerifiedX Foundation. This article was not commissioned or reviewed by The VerifiedX Foundation and reflects the independent judgment of the author.
