Tokenized BTC represents Bitcoin's entry into the broader cryptocurrency ecosystem through blockchain interoperability. These synthetic assets enable Bitcoin's value to be exchanged, traded, and used within decentralized finance (DeFi) applications, bridging the gap between Bitcoin's simplicity and Ethereum's programmability. By locking native BTC and minting tokens on compatible networks like Ethereum, users gain access to yield farming, lending, staking, and other services that expand beyond Bitcoin's core functionality. Custodial platforms securely hold BTC in vaults while issuing 1:1 pegged tokens, while non-custodial solutions automate asset swaps through smart contracts, offering security without intermediaries. Tokenized BTC enhances liquidity in DeFi ecosystems, enabling cross-chain swaps, derivatives trading, and participation in governance mechanisms while maintaining exposure to Bitcoin's price movements. Its rise highlights Bitcoin's evolving role beyond digital payments, demonstrating adaptability in decentralized finance and interoperable blockchain solutions.