By Isaac • November 1, 2026 3:12 pm •
Aave has moved to contain its exposure to tBTC after Threshold Network paused the token’s Bitcoin bridge operations.
The restriction blocks new tBTC deposits and prevents the asset from adding fresh borrowing power on Aave’s Ethereum Core market. It does not liquidate existing users, freeze the entire protocol or stop borrowers from repaying debt.
Trending: Fox News digital editor found beaten to death in neighbor’s closet, police say
The move matters because roughly 1,760 tBTC worth about $136.6 million was supplied to that market, representing approximately 42% of the token’s circulating supply. A prolonged redemption outage could make it harder for lenders and liquidators to convert tBTC back into native Bitcoin without relying on secondary-market buyers.
Threshold announced the precautionary pause first:
tBTC minting and redemptions temporarily paused
We
Continue reading
Join the conversation!
Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!