bitRWA (cross-chain)Bridge
Compliant RWA Bridge: T-Bills to Bitcoin
About
The problem it solves **bitRWA-bridge** A trust-minimized, compliant, and capital-efficient way to bring RWAs—like tokenized T-Bills (e.g., BlackRock’s $BUIDL)—to Bitcoin via Rootstock, enabled by Chainlink infrastructure, BitMask Wallet, and Ondo’s RWA stack. This unlocks native BTC yield and Bitcoin-based DeFi for institutional and retail market participants. $ Multi - compliant RWAs USDY, OUSG ⛓️ Multi- chain deployment Ethereum, Avalanche, Rootstock (BTC) **Inspiration** As the founder of BitMask, I recently spoke with the RWA team at Franklin Templeton (who currently manage ~$741.5 million in tokenized assets ). We explored a simple but powerful question: *What if RWAs could be deployed, bridged and traded directly to Bitcoin?* The gleam in their eyes said it all—and sparked a deeper dive into institutional appetite for this future. That exploration led us to this hackathon, where we’ve built *an institutional grade cross-chain bridge for RWAs, specifically US-Treasuries. * - ChainlinkCCIP, Functions, Chainlink Proof of Reserves, and Data Feeds - Ondo’sRWAHub contracts and Securitize’s KYC/AML stack - BitMaskWallet for seamless RWA access on Rootstock, Bitcoin’s smart contract layer - RWAs deployed on Avalanche Fuji supporting the cross-chain bridge to Bitcoin **The Opportunity - Real-World Assets Meet Bitcoin** Global asset managers, corporate treasuries, and sovereign wealth funds already hold or want Bitcoin exposure. Tokenizing RWAs like U.S. Treasuries, real estate, and commodities on Bitcoin unlocks: - **Global Access** – Anyone, anywhere, anytime - **Instant Settlement** – Finality on Bitcoin’s secure rails - **Programmable Finance** – RWAs meet DeFi on BTC via Rootstock - **BTC Yield Opportunities** – Institutions earn yield, natively swapped to BTC - **Bitcoin-Secured** – Protected by over 80% of Bitcoin’s PoW hashpower via merge-mining - **Lower & Predictable Fees** – Rootstock gas costs are stable and significantly cheaper than Ethereum This creates a zero-friction capital loop and unlocks trillions in institutional capital, with composability and compliance at its core. **Potential Market Impact and Revenue** If the tokenized RWA market reaches $1 trillion (a mid-range projection), Bitcoin via BitRWA bridge capturing even 2–5% would represent $20–50B in assets. At a 3% yield: ➤ $20B = $600M/year in yield on Bitcoin rails With swap/bridge fees (~0.05–0.1%): ➤ $10–25M/year in protocol revenue **About BitMask** 💎 → BitMask is a unique Bitcoin wallet and infrastructure that facilitates tokenization via smart contracts on Bitcoin. We support both RGB (Bitcoin native) and Rootstock (EVM compatible) smart contracts natively on Bitcoin. $2.5million and backed by Tim Draper of Draper Associates, in addition to prolific investors. Development grant from Rootstock FoundationRootstock is Bitcoin’s EVM-compatible smart contract layer, secured by merge-mining. It enables DeFi and tokenized RWAs with Bitcoin-grade security. # Architecture Overview The bridge consists of three main components: ### 1) BitRWABridge (Ethereum/Sepolia) **Role:** - Accept user deposits of USDY - Lock tokens in escrow - Validate compliance and wallet binding - Construct and dispatch CCIP message **Relevant Address:** - **Sepolia CCIP Router:** `0xD0daae2231E9CB96b94C8512223533293C3693Bf` ### 2) BitRWABridgeAdapter (Rootstock) **Role:** - Receive CCIP messages - Validate and parse payloads - Query **RBTC/rUSDY** price feed - Mint **rUSDY** tokens proportional to locked **USDY** value **Relevant Address:** - **Rootstock CCIP Router:** `0x536d7e53d0adeb1f20e7c81fea45d02ec8dde1b8` ### 3) **Token Contracts** - **USDY** (Ethereum): ERC-20 token representing RWA from ONDO contract on the user account - **rUSDY** (Rootstock): RRC-20 mintable token pegged to USDY value on ONDO RWAhub contract --- # Using BitRWA to bridge $USDY onchain ### Phase 1 – Compliance and Wallet Binding **Purpose:** Verify the user is eligible and bind their wallet cross-chain. - **Access Control:** *onlyOwner* and *onlyCompliant* ### Phase 2 – Token Locking and Message Dispatch 1. **Verify compliance and balance** 2. **Lock tokens on Ethereum** 3. **Snapshot ETH/USDY price** 4. **Dispatch CCIP message** ### Phase 3 – Cross-Chain Message Relay **Infrastructure:** - Chainlink CCIP relays message across networks. - Chain selectors: - **Sepolia:** `16015286601757825753` - **Rootstock:** `12532609583862916517` ### Phase 4 – Minting on Rootstock 1. Validate sender authenticity 2. Calculate rUSDY equivalent with **live price feeds** 3. Mint tokens to bound wallet ### Phase 5 – Confirmation and Balance Update - Send confirmation message - Reduce locked balances on Ethereum - Emit *BridgeCompleted* --- ### **Price Feed Integration** Chainlink feeds used: - **ETH/USDY:** `0x694AA1769357215DE4FAC081bf1f309aDC325306` - **RBTC/rUSDY:** `0x1b44F3514812d835EB1BDB0acB33d3fA3351e43` --- avax address: 0xD071876B13886e01988CEa66C87b93B3073233
How it's made
Challenges we ran into Building the first permissionless, compliant bridge for RWAs was challenging but rewarding. We faced: Complex ONDO RWAhub contracts – understanding claim logic and compliance flows Testnet deployment issues – adapting ONDO contracts for test environments and setting up mock USDY supply CCIP integration errors – handling message encoding bugs, gas limit reverts, and sender authorization failures Despite these hurdles, we successfully delivered a working cross-chain, price-aware bridge. Once everything was working on ETH, we had no issues whatsoever deploying on avalanche and completing an Avalanche - Rootstock (btc) bridge using CCIP