Coinbase has formally launched its wrapped bitcoin token, cbBTC, on its Layer 2 community, Base and Ethereum mainnet, in response to a September 12 announcement.
The brand new product comes a couple of month after Coinbase teased it on social media platform X.
cbBTC
Based on Coinbase, cbBTC is an ERC-20 token absolutely backed by Bitcoin and saved on the platform. When customers ship BTC from Coinbase to Base or Ethereum, it’s robotically transformed to cbBTC and vice versa.
Wrapped Bitcoin Tokens permit customers to leverage their BTC on different networks. Thus, the change famous that cbBTC goals to help progressive monetary purposes and promote Bitcoin adoption in DeFi.
Already a number of main DeFi protocols, together with AaveMorpho, Sky, Compound, Aerodrome, Curve, Veda, Mellow and real-world asset platform Maple, have already built-in cbBTC for his or her customers.
As well as, cbBTC is accessible by the Coinbase app in Singapore, the UK, the European Financial Space, Australia, Brazil, and the US (excluding New York State). The asset may even be globally accessible on Base and Ethereum.
Information from blockchain analytics agency Arkham Intelligence exhibits that Coinbase holds over 984,000 BTC value roughly $57 billion. In the meantime, most of it’s held for exchange-traded fund issuers like BlackRock, which manages its ETF property on the change led by Brian Armstrong.
Issues with WBTC
Coinbase's cbBTC launch comes at an fascinating time because the dominant wrapped bitcoin token issued by BitGo WBTC faces challenges.
Over the previous month, cryptocurrency customers have been in search of options to WBTC because of BitGo's new partnership with TRON founder Justin Solar. Whereas the agency sought to allay these issues, critics identified that Solar's involvement posed a menace to the token due to its monitor report.
Due to this, a number of tasks tried to make use of the fallout to push a bitcoin wrapper product.
Earlier this month, 21.co, the guardian firm of 21Shares, launched its Wrapped Bitcoin (21BTC) product on the Ethereum blockchain. Beforehand, the DeFi protocol Threshold proposed merging its BTC “wrapper” token, tBTC, with WBTC in an try to avoid wasting the extra in style BTC product.
