sBTC Withdrawal Functionality Is Now Live
//: April 30, 2025
Staff @ Bitcoin L2 Labs
Bitcoin L2 Labs is excited to announce that sBTC withdrawal functionality is live starting today.

This marks the completion of Phase 2: Mainnet - Bitcoin Withdrawals in the 3-phase sBTC Rollout plan.
In Phase 1: Mainnet - Bitcoin Deposits, over 3,000 BTC were deposited into the protocol.

Starting with deposits allowed developers to rigorously test the protocol in real-world conditions before enabling withdrawals. Now, with Phase 1 successfully completed, Phase 2 unlocks sBTC withdrawals.
How Withdrawals work
Withdrawal functionality enables users to convert sBTC back into native BTC on Bitcoin in a trust-minimized way.

Users can withdrawal BTC by submitting a request through the official Stacks dashboard or through any compatible wallet or application.

Here’s how it works:
  1. Initiate withdrawal: The user specifies the amount of sBTC to redeem and provides a valid Bitcoin address for receiving the BTC.
  2. sBTC locked on Stacks: The withdrawal request is recorded and the specified amount of sBTC is locked on the Stacks blockchain.
  3. sBTC signers approve the request: The withdrawal request is processed by the sBTC protocol. At least 70% of the sBTC signer set must approve the request.
  4. BTC released: The sBTC signer set broadcasts a Bitcoin transaction to release the BTC to the user’s specified address.
  5. sBTC burned on Stacks: The withdrawal completion is recorded and the specified amount of sBTC, previously locked, is burned on the Stacks blockchain.

Note: As an added security measure, sBTC will have a temporary, initial withdrawal limit of 150 BTC per day (every 150 Bitcoin blocks). This will allow sBTC developers to ensure the system is operating as expected before the cap is lifted in the upcoming weeks.
Withdrawal Functionality Completes Key Milestone
Activating withdrawal functionality improves user confidence and reduces trust assumptions, as sBTC holders can now redeem their BTC at any time.

In addition, sBTC withdrawal functionality improves liquidity and helps to enable more efficient markets for trading sBTC.

Finally, activating this milestone delivers one of the most critical features of the sBTC system: permissionless Bitcoin withdrawals. Key sBTC features include Bitcoin Deposits and Withdrawals, 1:1 Bitcoin Backing, an Institutional Signer Network, 100% Bitcoin Finality, and Transparent, Open-source Code.
What’s next for the sBTC rollout
The sBTC rollout is structured in multiple phases to ensure security, usability, and scalability. Today marks the completion of Phases 0, 1, and 2.

  1. ✅ Phase 0: Testnet - Completed on November 22, 2024
  2. ✅ Phase 1: Mainnet - Bitcoin Deposits - Completed via Cap 1 and Cap 2 on December 17, 2024, and February 10, 2025, resulting in over 3,000 BTC deposited
  3. ✅ Phase 2: Mainnet - Bitcoin Withdrawals - Activated today
  4. ▶️ Phase 3: Further Decentralization + UX Improvements - Following Phase 2

Over the coming months, Phase 3 will decentralize the sBTC protocol with the end goal being to reduce the friction of using BTC in DeFi in a secure and trust-minimized way.

sBTC paves the way for Bitcoin to evolve from a store of value to a productive asset. sBTC is already gaining traction by empowering builders to integrate Bitcoin into DeFi. Check out the sBTC landing page here for more information and updates.

FAQs
How do I withdraw Bitcoin from sBTC?
Users can withdrawal BTC by submitting a request through the official Stacks dashboard or through any compatible wallet or application.

Here’s how it works:
  1. Initiate withdrawal: The user specifies the amount of sBTC to redeem and provides a valid Bitcoin address for receiving the BTC.
  2. sBTC locked on Stacks: The withdrawal request is recorded and the specified amount of sBTC is locked on the Stacks blockchain.
  3. sBTC signers approve the request: The withdrawal request is processed by the sBTC protocol. At least 70% of the sBTC signer set must approve the request.
  4. BTC released: The sBTC signer set broadcasts a Bitcoin transaction to release the BTC to the user’s specified address.
  5. sBTC burned on Stacks: The withdrawal completion is recorded and the specified amount of sBTC, previously locked, is burned on the Stacks blockchain.

How long does an sBTC withdrawal take?
Withdrawals require 6 Bitcoin blocks to finalize, which is approximately one hour.

What fees are involved in an sBTC withdrawal?
Withdrawals require the user to pay the Bitcoin network fee required to confirm the BTC transaction on the Bitcoin blockchain. This fee is estimated based on current network congestion.

Is there a minimum withdrawal amount?
No. The only requirement is withdrawals must meet a minimum amount above the dust requirements (546 sats).

Why is there an initial limit on withdrawals?
As an added security measure, sBTC will have a temporary initial withdrawal limit of 150 BTC per day (150 Bitcoin Blocks). This will allow sBTC developers to ensure the system is operating as expected before the withdrawal rolling cap is lifted in the upcoming weeks.

What happens if the withdrawal process fails?
If a withdrawal fails due to network issues or signer unavailability, the withdrawal request may expire. In that case, the sBTC is unlocked and returned to the user, who can try again without losing funds.

Check out the sBTC home page here for more information and updates as we move closer to the launch of Phase 2 and beyond.

Disclaimer
This blog post is for general informational purposes only and should not be construed as advice or guidance. The information provided has not been tailored to any specific individual, facts, or circumstances. Readers are cautioned that the content may become outdated or inaccurate over time and should not be relied upon without conducting their own independent verification and investigation. BitcoinL2 Labs assumes no obligation to update, correct, or revise any information presented in this blog post.

BitcoinL2 Labs does not own, control, manage, or profit from the sBTC token, its ecosystem, or any associated projects. Additionally, BitcoinL2 Labs does not manage sBTC, its rewards program, or any related activities. References to sBTC in this blog post do not constitute recommendations, investment advice, or an invitation to engage in cryptocurrency-related activities.

The sBTC rewards program operates independently through decentralized smart contracts. Participation in the program is entirely at the discretion and responsibility of individual users. Users must affirmatively enroll in the program. **Readers are strongly encouraged to consult qualified financial, legal, or tax professionals before participating in sBTC or any cryptocurrency-related activities. BitcoinL2 Labs disclaims all liability for any loss, damage, or consequences resulting from reliance on this blog post or engagement with cryptocurrency-related activities.