Layer 1 blockchain Nomic will begin supporting Ethereum on its decentralized Bitcoin custody engine on a testnet launching on September 12. This will allow Nomic users to access and exit Bitcoin 
BTC/USD on Ethereum without a third-party centralized custodian.
So, Nomic’s native nBTC can be used instead of Wrapped Bitcoin 
WBTCwhich is backed by BTC held in reserve by a custodian.
Making BTC DeFi Less Complicated
nBTC provides a trust-minimized solution for using Bitcoin in decentralized finance and could, in the future, be used on other Ethereum Virtual Machine (EVM)-based chains. Matt Bell, CEO of Turbofish, founder and main contributor of Nomic, said:
“Bitcoin is the most valuable crypto asset, and Ethereum is the most valuable DeFi ecosystem (…) It’s time to move beyond the current clunky, centralized BTC offerings on Ethereum, and start truly introducing Bitcoin to DeFi.”
Bitcoin can be exchanged for nBTC, which is backed by Nomic’s decentralized BTC reserves. Nomic is part of the Cosmos ecosystem and nBTC can be transferred on Cosmos or any chain that supports Cosmos’ inter-blockchain communication protocol.
Few options available for BTC DeFi
Before nBTC, the only alternative to WBTC was tBTC, originally issued by the Keep network. tBTC used multi-party computation to secure data by distributing it via smart contracts between “signatories.” Keep and NuCypher merged in 2022 to form Threshold.
In August, BitGo announced that it was transferring custody of WBTC to a joint venture with BiT Global while preserving the multisignature technology that protected it. BitGo’s decision proved controversial due to Justin Sun’s involvement in the partnership.
A few weeks later, Threshold proposed replacing WBTC’s centralized custody, minting, and burning model with the permissionless minting and repurchase mechanism used for tBTC. This proposal would effectively give Threshold control over WBTC.
Another alternative to WBTC was renBTC, issued on an exchange run by Alameda Research. This exchange closed when FTX collapsed.
