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🏛️ Bitcoin Clearing House

The Bitcoin Clearing House is a core component of the Corn Network, designed as a permissionless smart contract system for minting $BTCN. Inspired by MakerDAO’s Peg Stabilization Module (PSM), governs the mint and redemption of $BTCN on a 1:1 basis when depositing approved Bitcoin-backed collateral. The system ensures transparency while securely executing seamless conversion between tokenized Bitcoin assets, starting with $cbBTC and wBTC as the initial collateral types.

Minting $BTCN​

At launch, $BTCN minting is exclusively handled by the Bitcoin Clearing House, which facilitates 1:1 swaps of approved collateral assets for $BTCN. The system prioritizes security and stability by initially supporting only $cbBTC (Coinbase’s tokenized Bitcoin) $wBTC (Wrapped Bitcoin). Over time, additional Bitcoin-backed assets may be whitelisted through a risk-managed and transparent process governed by the Corn Risk Council.

Coinbase Bitcoin ($cbBTC)​

$cbBTC is issued by Coinbase, a globally trusted exchange and Bitcoin custodian. With over a decade of institutional-grade security and custody services, Coinbase ensures $cbBTC is fully backed 1:1 by native Bitcoin. This makes $cbBTC one of the most reputable and secure collateral assets for minting $BTCN, providing direct access for millions of Coinbase users to participate in the Corn Network.

Wrapped Bitcoin ($wBTC)​

$wBTC is one of the most widely used tokenized Bitcoin assets in DeFi, bridging Bitcoin liquidity to Ethereum-based applications. Custodied and managed by BitGo, $wBTC maintains a 1:1 peg with Bitcoin, making it a key asset for DeFi trading, lending, and liquidity provisioning. Its deep integration across Ethereum’s ecosystem ensures $BTCN remains backed by highly liquid and trusted assets.

Deposit Caps​

The Bitcoin Clearing House implements minting caps for each approved collateral asset. These caps are actively managed by Corn's Risk Council and are assessed based on multiple risk factors.

At launch, $BTCN minting through the Bitcoin Clearing House will be capped for both approved collateral assets:

  • $cbBTC: 1000 BTC
  • $wBTC: 1000 BTC

This means that initially, a total of $100M worth of $BTCN will be mintable through the Bitcoin Clearing House. This amount has been determined to be more than sufficient to enable the network's bootstrapping and initial growth phase.

The Risk Council will continuously evaluate cap increases and collateral asset whitelisting during this initial phase. Any changes will be promptly communicated to the Corn community through official channels.

The Future of the Bitcoin Clearing House​

As Corn evolves, the Bitcoin Clearing House will serve as the backbone for $BTCN’s liquidity and stability. The system will enable arbitrage opportunities, ensuring efficient price discovery and seamless swaps between Bitcoin-pegged assets. Additionally, future upgrades may allow a portion of the Bitcoin reserves (e.g., $cbBTC and $wBTC) to be allocated into yield-bearing instruments, transforming the Bitcoin Clearing House into a productive, yield-generating treasury.

Over time, Corn may expand $BTCN minting rights beyond the Bitcoin Clearing House, enabling additional trusted entities to participate. This will further decentralize $BTCN issuance while maintaining rigorous security standards.

By establishing $BTCN as Corn’s gas token and bridging Bitcoin’s deep liquidity into DeFi, the Bitcoin Clearing House plays a crucial role in fulfilling Corn’s vision—positioning Bitcoin as the most dominant and liquid asset across DeFi.