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Coinbase debuts Wrapped Bitcoin on Ethereum and Base networks

Coinbase debuts Wrapped Bitcoin on Ethereum and Base networks

GrafaGrafa2024/09/13 03:45
By:Liezl Gambe

Coinbase has launched Coinbase Wrapped Bitcoin (CRYPTO:CBBTC), a new offering that allows users to leverage Bitcoin (CRYPTO:BTC) within decentralised finance (DeFi) applications on Ethereum (CRYPTO:ETH) and Base networks. 

The CBBTC token represents a wrapped version of Bitcoin, fully backed by BTC held in Coinbase's custody, providing a new way for users to participate in DeFi while utilising their Bitcoin assets. 

With CBBTC, Coinbase aims to expand the DeFi opportunities available to its millions of customers by enabling them to provide liquidity, use Bitcoin as collateral, and trade on decentralised exchanges (DEXs). 

By integrating Bitcoin liquidity with Ethereum and Base—two widely used blockchain protocols—Coinbase simplifies access to decentralised financial services, making them more accessible to both institutional and retail clients. 

Unlike traditional cryptocurrency trading systems, CBBTC does not rely on a separate order book on Coinbase’s platform. 

Instead, when Bitcoin is transferred to supported networks, it is automatically converted to CBBTC, and vice versa, making the process seamless for users. 

The token can be traded on DEX platforms using Coinbase Wallet, and Coinbase plans to extend support for CBBTC to other blockchains in the near future. 

Initially, CBBTC will be available in select regions, including the U.S. (excluding New York), the U.K., European Economic Area (EEA) countries, Singapore, Australia, and Brazil. 

Coinbase plans to further expand its service reach through the Ethereum and Base ecosystems. 

This new offering follows the recent move by Bitgo to change custody partners for wrapped Bitcoin (CRYPTO:WBTC) in collaboration with Bit Global, indicating a growing trend in the adoption and evolution of wrapped Bitcoin products. 

At the time of reporting, the Coinbase Wrapped BTC (CBBTC) price was $58,202.99, and the Ethereum (ETH) price was $2,355.87.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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