Zest Protocol Launches Bitcoin Collateral Vaults Mainnet Demo, Enabling Borrowing of USDC Against Native BTC

TechFlow News reports that on September 23, according to official announcements, Zest Protocol has launched a limited mainnet demonstration for Bitcoin Collateral Vaults. Users can deposit native BTC into self-custodial vaults on Bitcoin L1 and use it as collateral to borrow USDC on EVM networks such as Ethereum, without wrapping BTC or bridging it across chains.

Users' BTC remains in independent vaults on the Bitcoin network, segregated from other users' assets, with vault status relayed to EVM networks via BitVM proofs. The current demonstration operates under a per-wallet limit mechanism, allowing users to test the complete lending process with real BTC and USDC. Following the completion of an external audit, Zest Protocol plans to advance the full mainnet launch and institutional partnerships.