Coinbase’s cbBTC launches seeking DeFi boom on Base and Ethereum Coinbase’s cbBTC launches seeking DeFi boom on Base and Ethereum
Coinbase said its Bitcoin Wrapper product cbBTC is supported across major DeFi protocols, including AAVE.
2 min read
Updated: Sep. 12, 2024 at 2:27 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Coinbase has officially launched its wrapped Bitcoin token, cbBTC, on its layer-2 network, Base, and Ethereum mainnet, according to a Sept. 12 statement.
The new product comes around a month after Coinbase teased it on the social media platform X.
cbBTC
According to Coinbase, cbBTC is an ERC-20 token fully backed by Bitcoin and custodied on the platform. When users send BTC from Coinbase to Base or Ethereum, it automatically converts to cbBTC and vice versa.
Wrapped Bitcoin tokens allow users to leverage their BTC on other networks. So, the exchange noted that cbBTC aims to drive innovative financial applications and boost Bitcoin adoption in DeFi.
Already, several major DeFi protocols, including Aave, Morpho, Sky, Compound, Aerodrome, Curve, Veda, Mellow, and the real-world asset platform Maple, haveย already integrated cbBTC for their users.
Moreover, cbBTC is available via the Coinbase application in Singapore, the UK, the European Economic Area, Australia, Brazil, and the US (excluding New York State). The asset will also be accessible globally on Base and Ethereum.
Data from blockchain analytics firm Arkham Intelligence shows that Coinbase holds over 984,000 BTC, valued at approximately $57 billion. Meanwhile, most of this is held for exchange-traded fund issuers like BlackRock, who custody their ETF assets with the Brian Armstrong-led exchange.
WBTC troubles
Coinbase’s launch of cbBTC comes at an interesting time as the dominant Wrapped Bitcoin token issued by BitGo WBTC faces challenges.
Over the past month, crypto users have sought alternatives to WBTC due to BitGo’s new partnership with TRON founder Justin Sun. While the firm has tried to allay these worries, critics have pointed out that Sun’s involvement poses a threat to the token due to his track record.
Due to this, several projects have been seeking to take advantage of the fallout to push a Bitcoin wrapper product.
Earlier this month, 21.co, the parent company ofย 21Shares, introduced its Wrapped Bitcoin product (21BTC) on the Ethereum blockchain. Prior to that, DeFi protocol Threshold hasย proposed merging its BTC “wrapper” token, tBTC, with WBTC in an effort to save the more popular BTC product.
Mentioned in this article
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
Editor Editor 
Liam 'Akiba' Wright
Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$2,368.77
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
BitGo
BitGo is a market leader in institutional-grade cryptocurrency investment services, providing institutional investors with security, compliance, and custodial solutions for blockchain-based currencies.
21shares
21Shares is a Swiss provider of crypto- currency exchange-traded products (ETPs).
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.
