November 10, 2026·8 min read

Seven wrapped Bitcoin tokens hold the same Bitcoin and earn ratings from A+ to B−

Credora ratings for seven wrapped Bitcoin tokens: cbBTC A+, WBTC A, cirBTC A, kBTC A, UBTC B, BTCB B−, solvBTC B−

About $23.6 billion of Bitcoin sits onchain inside seven custodial wrapped Bitcoin tokens. Each is minted 1:1 against Bitcoin a custodian holds off-chain, and each runs on a simple contract its issuer can pause, mint or upgrade. What differs is who holds the Bitcoin and what a holder can claim from it.

Credora rated all seven on the same methodology. Their Probability of Default (PD) runs from 0.080% to 5.319%, a factor of 66. Three inputs explain the whole spread.

Wrapped Bitcoin ratings as of 4 November 2026

Token	Issuer	Custodian of the Bitcoin	Value	PD	Rating
cbBTC	Coinbase	Coinbase Custody	$7.48B	0.080%	A+
WBTC	BitGo / BiT Global	BitGo with BiT Global, 2-of-3 multisig	$8.92B	0.113%	A
cirBTC	Circle	Circle National Trust, OCC national trust bank	$481M	0.185%	A
kBTC	Payward Commercial (Kraken, BVI)	Kraken Financial, Wyoming SPDI bank	$659M	0.230%	A
UBTC	Unit (Hyperliquid)	2-of-3 MPC guardian quorum	$542M	2.391%	B
BTCB	Binance	Binance exchange custody	$5.02B	3.165%	B−
solvBTC	Solv Protocol	Signing committee led by Solv, plus Solv multisigs	$471M	5.319%	B−

PD is annualised. A+ covers 0 to 0.1%, A 0.1 to 0.4%, B 1.5 to 3% and B− 3 to 6%. Value is market cap. All figures as of 4 November 2026. Live ratings are on the Credora app.

Credora rating scale for wrapped Bitcoin as of 4 Nov 2026: cbBTC A+ (0.080% PD), WBTC A, cirBTC A, kBTC A, UBTC B, BTCB B−, solvBTC B− (5.319% PD)

How Credora rates wrapped Bitcoin risk

The starting point is an anchor PD. Bitcoin itself is a flat 0.010% for every token, and none is charged for smart contract risk, because all seven are simple-contract tokens. The custodian decides the rest of the anchor, with small adjustments for bridge and price feed dependencies. Modifiers then move the anchor up or down in notches: reserve transparency, the issuer’s regulatory coverage, the holder’s rights, peg history, market cap, holder concentration, governance and operational security.

Who holds the Bitcoin sets the tier

Four tokens keep their Bitcoin at a US-regulated bank or trust company, with custodian PD between 0.012% (Coinbase Custody) and 0.034% (Kraken Financial). UBTC’s MPC guardian quorum is priced at 0.500%, and BTCB and solvBTC at 0.534% for exchange or undisclosed custody. That is 15 to 45 times higher, and it puts all three at A− before a single modifier applies.

Swap a Coinbase- or BitGo-level custodian into those three and BTCB moves to about 0.13% (A), UBTC to 0.14% (A) and solvBTC to 0.54% (A−).

Custodian PD of wrapped Bitcoin tokens: bank or trust custody at 0.012–0.034% versus 0.500–0.534% for UBTC, BTCB and solvBTC, 15 to 45 times higher

Size and track record set the order inside each tier

cbBTC and WBTC are large, widely held and kept their peg for a year, worth +0.25 and +0.50 notches. cirBTC has under two months of price history and two wallets hold 90% of its free float, which costs −0.75. solvBTC trades a median $7K a day, and its peg alone costs −0.75.

Give cirBTC cbBTC’s size and peg record, and its PD falls to 0.081%, A+.

The holder’s legal claim separates cirBTC from the other six

Two modifiers score the claim. Regulatory coverage looks at the issuer’s licence and whether the reserve is ring-fenced from the issuer’s estate. User rights looks for a legal right to redeem, segregation and beneficial ownership.

cirBTC is the only token whose documents hold the Bitcoin for holders’ exclusive benefit, and the only one that gives its Circle Mint customers a redemption right. It loses 0.25 notches here. The other six lose a full notch, cbBTC included: Coinbase holds a NYDFS BitLicense, but its terms state no ring-fence and no holder right.

This input is worth up to a notch for every token. Published holder terms with a named, licensed issuer, a ring-fenced reserve and a redemption right would take WBTC to 0.061%, A+.

Holder's legal claim in wrapped Bitcoin tokens: only cirBTC holds a segregated reserve with a legal right to redeem (−0.25 notch); the other six lose a full notch

What does not separate them

Governance and operational security cost all seven the same 1.60 notches. In every case, issuer keys can pause, mint or upgrade the contract with no timelock. Reserve transparency adds the same +0.25 to all seven: each reserve is readable onchain against supply, and none is independently attested. Together these rows multiply every PD by about 2.3 and move no token relative to another.

No token gives every holder a legal right to redeem

cbBTC, kBTC and BTCB redeem 1:1 for account holders at the issuing exchange. cirBTC redeems for Circle Mint customers, New York excluded. WBTC redeems for 48 approved merchants. UBTC and solvBTC redeem through their own apps, solvBTC after a 7-day queue and in wrapped BTC only. Everyone else exits on secondary markets, where liquidity is thin for cirBTC, kBTC and solvBTC.

Who can redeem each wrapped Bitcoin token: exchange account holders, Circle Mint customers, 48 WBTC merchants, a 7-day solvBTC queue; everyone else sells on the market

Token by token

cbBTC · A+ · 0.080%. The lowest custodian PD in the set and no bridge or price feed adjustment, so the anchor is 0.022%. Dispersed holders and a clean peg year keep it at the top. Against it: each of five contract roles sits with a single key, and the terms were unclear on ring-fencing or holder rights. Holder rights and a ring-fence in the terms would take it to 0.051%.

WBTC · A · 0.113%. The largest token by value, with 109 reserve addresses that reconcile to supply on every chain. Against it: no published holder terms, redemption limited to 48 merchants, and a 6-of-10 multisig that can pause the token and swap the minting contract with no delay. Who holds the reserve keys after the May 2026 handover to BiT Global is unconfirmed, and the LayerZero bridge is still live.

cirBTC · A · 0.185%. Custody at Circle National Trust and the strongest holder claim in the set. Against it: under two months of history, $481M in value and a float two wallets dominate; 85% of supply sits on Arc. Its Chainlink reserve feed reads 9.7% below the published addresses, unexplained. A year of clean trading with dispersed holders would take it to 0.116%.

kBTC · A · 0.230%. Bitcoin at Kraken Financial, a Wyoming-chartered bank, with Chainlink CCIP as the bridge and a reserve that holds 10.6% more Bitcoin than supply. Against it: the issuer, Payward Commercial (BVI), holds no licence, nothing ring-fences the reserve from its estate, and redemption is a discretionary service for Kraken account holders. One externally owned account holds the upgrade key. A multisig with a timelock on that key would take it to 0.124%.

UBTC · B · 2.391%. A 2-of-3 MPC guardian quorum of Unit, Hyperliquid Labs and Infinite Field, priced at 0.500%. Against it: no named legal entity, licence, ring-fence or redemption right, and one address can upgrade the contract instantly. For it: a reserve within 0.03% of supply and $43M a day of trading on Hyperliquid. A regulated custodian at BitGo’s level would take it to about 0.14%, A.

BTCB · B− · 3.165%. Binance’s own exchange custody, priced at 0.534%. Against it: no licensed issuing entity named, redemption as an account withdrawal, and one address that can mint without limit. Binance’s 29 October hot-wallet breach did not touch the reserve address. US-regulated custody at Coinbase’s level would take it to about 0.13%, A.

solvBTC · B− · 5.319%. Undisclosed custody through a signing committee led by Solv, priced at 0.534%, and the weakest modifiers in the set. Against it: a median $7K of daily trading, a 7-day redemption queue paid in wrapped BTC, a reserve that also holds six other Bitcoin wrappers, and a 2-of-6 multisig that can blacklist and burn balances. For it: a 3-day upgrade timelock, the strongest key control of the seven.

What this assessment does not cover

Bitcoin’s price. A rating measures how faithfully a token delivers Bitcoin, not what Bitcoin is worth.
Lending markets and vaults that hold these tokens. Those are rated separately, by Probability of Significant Loss (PSL).
Undisclosed documents. Six of the seven ratings are indicative and built from public data. kBTC is a commissioned rating. Inputs an issuer has not published are treated as absent.
Changes after 4 November 2026. Ratings update when a token changes.

The full breakdown for each token is on the Credora app. See the methodology.

Key takeaway

All seven wrapped Bitcoin tokens hold the same Bitcoin, yet their PD runs from 0.080% to 5.319% as of 4 November 2026. The custodian sets the tier: bank or trust custody keeps four tokens at A+ and A, while exchange, MPC or undisclosed custody starts the other three at A−. Inside each tier, size, peg history and holder concentration set the order. The holder’s legal claim is the weakest input across the set, and only cirBTC states a ring-fenced reserve and a redemption right for its customers.

Frequently asked questions

What is the difference between cbBTC and WBTC?

Both keep their Bitcoin with US-regulated custodians: cbBTC at Coinbase Custody, WBTC with BitGo and BiT Global through a 2-of-3 multisig. As of 4 November 2026, cbBTC is rated A+ at 0.080% PD and WBTC A at 0.113%. WBTC is larger by value, but has no published holder terms, redemption limited to 48 merchants, and a multisig that can pause the token with no delay.

Who holds the Bitcoin behind wrapped Bitcoin tokens?

A custodian, off-chain. Four of the seven tokens use a US-regulated bank or trust company: Coinbase Custody (cbBTC), BitGo with BiT Global (WBTC), Circle National Trust (cirBTC) and Kraken Financial (kBTC). UBTC relies on a 2-of-3 MPC guardian quorum, BTCB on Binance exchange custody and solvBTC on a signing committee led by Solv.

Can wrapped Bitcoin holders redeem their tokens for BTC?

Only some holders can. cbBTC, kBTC and BTCB redeem 1:1 for account holders at the issuing exchange, cirBTC for Circle Mint customers outside New York, and WBTC for 48 approved merchants. UBTC and solvBTC redeem through their own apps, solvBTC after a 7-day queue and in wrapped BTC. Everyone else exits on secondary markets.