Coinbase Launches Wrapped⁤ Bitcoin (cbBTC)⁢ on Base and Ethereum Networks

Coinbase, the‌ largest cryptocurrency trading platform in the United States, has announced ‌the launch ⁢of its new product, Wrapped Bitcoin ⁢(cbBTC), which is now available on the Base ‌and Ethereum networks.

The announcement comes ​months after ⁣Coinbase integrated the Lightning Network to speed up ‍Bitcoin transfers, further ‍enhancing⁣ the user ⁣experience.

Coinbase explained in its statement that cbBTC will be‍ backed 1:1 by Bitcoin (BTC) held by the company, ensuring that each unit of cbBTC ​actually represents one Bitcoin, providing users with a secure and reliable way ⁢to utilize ⁢their Bitcoins.

Currently, the product is only available on Base‌ and Ethereum, but it is expected to expand to other networks in the future,​ allowing‌ for ‍greater accessibility and flexibility.

With cbBTC, we continue to advance economic freedom by enabling users to ‌exploit their Bitcoins for financial applications ⁢within the Ethereum ecosystem.

Coinbase notes that the integration ⁢of the Lightning network‍ earlier this​ year has ‍contributed to facilitating faster and less expensive bitcoin transfers, making it ⁣easier for users to manage their cryptocurrencies.

cbBTC ⁤has opened the door for various DeFi applications to align with this sector, providing users with a wide range of opportunities to utilize their Bitcoins.

Bitcoin holders can use⁣ their coins to provide liquidity in‍ decentralized finance (DeFi)⁣ protocols or as ⁣collateral to borrow other⁣ crypto assets, further expanding ‌the possibilities for cryptocurrency use.

Some of the DeFi protocols that cbBTC supports from the start include:

• Curve
• Aave
• Compound
• Mellow
• Definitive
• Steakhouse
• Maple

It is ⁤worth noting that cbBTC will not⁢ have an order book or a separate trading pair on the Coinbase⁤ platform, streamlining the user experience.

When users send their bitcoins to specified‍ base and ethereum addresses, ⁤bitcoin‍ will be automatically converted 1:1 to cbBTC and vice versa, ​providing a seamless and efficient process.

Users can then⁣ trade cbBTC across the decentralized platform using the Coinbase wallet or any other trading platform, giving ⁢them greater control and flexibility.

For now, cbBTC will only be available to Coinbase users residing in the US (excluding‍ New York State), UK, EEA countries, Singapore, Australia, and Brazil, ‍with plans for future expansion.