Bitcoin (BTC), as the most widely recognized asset in the cryptocurrency market, has long faced a significant issue: its absence in on-chain yield scenarios. Unlike Ethereum (ETH), which has become a core asset in the Decentralized Finance (DeFi) space, BTC has been regarded as a "non-productive" asset—one that does not generate interest, has restricted circulation, and cannot participate in protocol governance.

However, a new solution is emerging that provides a viable path for the activation of BTC in the on-chain ecosystem. This approach introduces a "compliance mirroring mechanism" by combining centralized finance (CeFi) custodianship and on-chain mapping. The core process includes:

1. Users deposit BTC into a regulated custody platform.
2. The system generates corresponding assets on the chain for participating in yield strategies.
3. The entire process can be verified on-chain, ensuring compliance and transparency.

Unlike the mapping model of traditional cross-chain bridges, this approach retains the legal certainty of the underlying assets, which is the key to truly activating BTC funds. It does not solely rely on smart contracts to build a security model, but rather reduces uncertainty at the contract level through regulated pathways.

It is worth noting that this approach does not forcibly "DeFi" BTC, but rather opens up new possibilities for asset appreciation of BTC through the synergy of systems and technology. This design cleverly balances the concept of decentralization with the compliance foundation required for institutional participation, paving the way for further development of BTC in the digital asset ecosystem.

With the emergence of this innovative approach, we can expect to see more BTC holders able to participate in a broader range of on-chain financial activities while maintaining the security of their assets. This not only helps to enhance the utility of BTC but may also bring new vitality and opportunities to the entire cryptocurrency market.