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  • Coinbase’s wrapped Bitcoin token cbBTC goes live

    Coinbase’s wrapped Bitcoin token cbBTC goes live

    Coinbase's wrapped Bitcoin token cbBTC goes live
    • Coinbase launches cbBTC, an ERC20 token backed 1:1 by Bitcoin in its custody.
    • cbBTC allows BTC holders to access DeFi apps like Aave, Compound, and MakerDAO.
    • Over 843,783 Bitcoins back cbBTC, representing 4% of the total Bitcoin supply.

    Coinbase, the largest cryptocurrency exchange in the US, has officially launched its new tokenization product, Coinbase Wrapped Bitcoin (cbBTC), marking a significant development in the tokenization of Bitcoin across blockchains.

    The newly launched ERC20 token is fully backed 1:1 by Coinbase’s Bitcoin holdings, allowing holders to interact with decentralized finance (DeFi) applications on Ethereum and Base.

    The release of cbBTC provides an innovative bridge between Bitcoin and Ethereum’s DeFi ecosystem, giving Bitcoin holders more ways to lend, borrow, and earn yields with their assets.

    cbBTC is backed by Coinbase’s Bitcoin holdings

    Coinbase’s extensive Bitcoin holdings back the entire supply of cbBTC. As of now, Coinbase holds over 843,783 Bitcoins in custody, valued at around $48.7 billion, representing more than 4% of the total Bitcoin supply. This ensures robust liquidity for cbBTC holders.

    The number of cbBTC tokens in circulation will be directly limited by the amount of Bitcoin Coinbase owns.

    How cbBTC works

    The mechanics behind cbBTC are simple yet effective. When users transfer Bitcoin from Coinbase to an address on Base or Ethereum, their BTC is automatically converted into cbBTC at a 1:1 ratio. This conversion happens seamlessly, and the reverse process occurs when cbBTC is sent back to a Coinbase account, transforming the wrapped asset back into Bitcoin.

    Unlike a typical token launch, cbBTC will not have a separate order book or trading pair on Coinbase, but it will be accessible on decentralized exchanges (DEXs) like Aerodrome and Curve. Additionally, third-party exchanges may choose to list cbBTC in the future.

    Expanding decentralized financial access

    The introduction of cbBTC is not just a technical advancement but also part of Coinbase’s broader mission to expand decentralized financial access.

    Will Robinson, Coinbase’s Vice President of Engineering, has highlighted cbBTC’s potential to bring “1 billion people on-chain.”

    By providing Bitcoin holders with access to DeFi applications such as Aave, Compound, and MakerDAO, cbBTC enhances the utility of Bitcoin, helping users integrate their BTC into a wider financial ecosystem.

    With the growing demand for Bitcoin-based DeFi products, cbBTC positions Coinbase as a leader in the tokenization space.

    Notably, Coinbase’s move comes shortly after BitGo’s announcement regarding custody services for wBTC, further fueling competition in the wrapped Bitcoin market.

    With support from major DeFi protocols, cbBTC is could play a key role in shaping the future of decentralized finance.

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  • Six major cryptocurrencies on Coinbase’s chopping board

    Six major cryptocurrencies on Coinbase’s chopping board

    • DerivaDAO (DDX), one of the delisted tokens, dipped the most after the announcement.
    • Multichain (MULTI), which has been facing serious setbacks with its bridge will also be delisted.
    • Coinbase regularly reviews its listed crypto assets to ensure they continually maintain the highest standards.

    Coinbase Assets has announced that it has decided to temporarily halt trading for six particular cryptocurrency assets, effective September 6, 2023, at 9 AM PT. The affected cryptocurrencies are BarnBridge (BOND), DerivaDAO (DDX), Jupiter (JUP), Multichain (MULTI), Ooki (OOKI), and Voyager (VGX).

    As a result of this move, these assets will experience a substantial shift as they will no longer have access to crucial Coinbase services like the Simple and Advanced Trade capabilities, Coinbase Pro, Coinbase Exchange, and Coinbase Prime platforms.

    The official notification from Coinbase states that the trade for these assets will be suspended starting on September 7, giving interested parties around two weeks to adjust. Within hours, the news had thousands of views and likes on Twitter as it quickly gathered popularity across internet platforms.

    Coinbase commitment to quality within its listed assets

    Coinbase’s move was motivated by the crypto exchange’s unwavering dedication to sustaining the highest standards of quality in its listed assets. The exchange revealed that the six assets didn’t pass its strict listing requirements after completing a thorough investigation.

    Notably, following the announcement, the prices of Ooki (OOKI), Multichain (MULTI), DerivaDAO (DDX), Jupiter (JUP), Voyager (VGX), and BarnBridge (BOND) and fell by 0.5%, 0.7%, 24%, 16%, and 6%, and 5% respectively.

    One of the delisted assets, Multichain, has seen a string of setbacks, including the arrest of its CEO and the subsequent closing of its bridge due to significant Bitcoin (BTC) losses totalling more than $109 million.

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