Coinbase’s cbBTC launches looking for DeFi boom on Base and Ethereum Oluwapelumi Adejumo · 1 week ago · 2 minutes checked out
Coinbase stated its Bitcoin Wrapper item cbBTC is supported throughout significant DeFi procedures, consisting of AAVE.
2 minutes checked out
Upgraded: Sep. 12, 2024 at 2:27 pm UTC
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Coinbase has actually formally released its covered Bitcoin token, cbBTC, on its layer-2 network, Base, and Ethereum mainnet, according to a Sept. 12 declaration.
The brand-new item occurs a month after Coinbase teased it on the social networks platform X.
cbBTC
According to Coinbase, cbBTC is an ERC-20 token totally backed by Bitcoin and custodied on the platform. When users send out BTC from Coinbase to Base or Ethereum, it instantly transforms to cbBTC and vice versa.
Covered Bitcoin tokens permit users to utilize their BTC on other networks. The exchange kept in mind that cbBTC intends to drive ingenious monetary applications and enhance Bitcoin adoption in DeFi.
Currently, numerous significant DeFi procedures, consisting of Aave, Morpho, Sky, Compound, Aerodrome, Curve, Veda, Mellow, and the real-world property platform Maple, have actually currently incorporated cbBTC for their users.
CbBTC is readily available through the Coinbase application in Singapore, the UK, the European Economic Area, Australia, Brazil, and the United States (leaving out New York State). The possession will likewise be available internationally on Base and Ethereum.
Information from blockchain analytics firm Arkham Intelligence reveals that Coinbase holds over 984,000 BTC, valued at around $57 billion. Many of this is held for exchange-traded fund companies like BlackRock, who custody their ETF possessions with the Brian Armstrong-led exchange.
WBTC problems
Coinbase’s launch of cbBTC comes at an intriguing time as the dominant Wrapped Bitcoin token provided by BitGo WBTC deals with obstacles.
Over the previous month, crypto users have actually looked for options to WBTC due to BitGo’s brand-new collaboration with TRON creator Justin Sun. While the company has actually attempted to ease these concerns, critics have actually explained that Sun’s participation positions a risk to the token due to his performance history.
Due to this, numerous tasks have actually been looking for to benefit from the fallout to press a Bitcoin wrapper item.
Previously this month, 21. co, the moms and dad business of 21Shares, presented its Wrapped Bitcoin item (21BTC) on the Ethereum blockchain. Prior to that, DeFi procedure Threshold has actually proposed combining its BTC “wrapper” token, tBTC, with WBTC in an effort to conserve the more popular BTC item.
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