1 week ago
Coinbase has officially launched its wrapped Bitcoin token, cbBTC, connected its layer-2 network, Base, and Ethereum mainnet, according to a Sept. 12 statement.
The caller merchandise comes astir a period aft Coinbase teased it connected the societal media level X.
cbBTC
According to Coinbase, cbBTC is an ERC-20 token afloat backed by Bitcoin and custodied connected the platform. When users nonstop BTC from Coinbase to Base oregon Ethereum, it automatically converts to cbBTC and vice versa.
Wrapped Bitcoin tokens let users to leverage their BTC connected different networks. So, the speech noted that cbBTC aims to thrust innovative fiscal applications and boost Bitcoin adoption successful DeFi.
Already, respective large DeFi protocols, including Aave, Morpho, Sky, Compound, Aerodrome, Curve, Veda, Mellow, and the real-world plus level Maple, have already integrated cbBTC for their users.
Moreover, cbBTC is disposable via the Coinbase exertion successful Singapore, the UK, the European Economic Area, Australia, Brazil, and the US (excluding New York State). The plus volition besides beryllium accessible globally connected Base and Ethereum.
Data from blockchain analytics steadfast Arkham Intelligence shows that Coinbase holds implicit 984,000 BTC, valued astatine astir $57 billion. Meanwhile, astir of this is held for exchange-traded money issuers similar BlackRock, who custody their ETF assets with the Brian Armstrong-led exchange.
WBTC troubles
Coinbase’s motorboat of cbBTC comes astatine an absorbing clip arsenic the ascendant Wrapped Bitcoin token issued by BitGo WBTC faces challenges.
Over the past month, crypto users person sought alternatives to WBTC owed to BitGo’s caller concern with TRON laminitis Justin Sun. While the steadfast has tried to allay these worries, critics person pointed retired that Sun’s engagement poses a menace to the token owed to his way record.
Due to this, respective projects person been seeking to instrumentality vantage of the fallout to propulsion a Bitcoin wrapper product.
Earlier this month, 21.co, the genitor institution of 21Shares, introduced its Wrapped Bitcoin merchandise (21BTC) connected the Ethereum blockchain. Prior to that, DeFi protocol Threshold has proposed merging its BTC “wrapper” token, tBTC, with WBTC successful an effort to prevention the much fashionable BTC product.
The station Coinbase’s cbBTC launches seeking DeFi roar connected Base and Ethereum appeared archetypal connected CryptoSlate.
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