As a seasoned crypto investor with a knack for recognizing potential opportunities, I find Coinbase’s latest move to be nothing short of revolutionary. The launch of their Wrapped Bitcoin product (cbBTC) on both Base and Ethereum blockchains is a testament to the platform’s commitment to fostering innovation and expanding financial freedom.


The leading U.S. cryptocurrency exchange platform unveiled that their Wrapped Bitcoin product, known as cbBTC, is now active on two different blockchain networks: Base and Ethereum.

This comes months after the company integrated the Lightning Network for BTC transfers.

According to the statement made by the exchange, each unit of Wrapped Bitcoin (cbBTC) is guaranteed to have an equivalent amount of Bitcoin (BTC) stored securely by Coinbase.

At present, our new product can be found exclusively on Base and Ethereum platforms. Yet, we anticipate extending our support to additional networks in the future. Unfortunately, specific names of these networks were not specified in the statement.

Through cbBTC, we are amplifying financial independence by offering more avenues for users to utilize their Bitcoin. From today, over millions of Coinbase customers can effortlessly and securely interact with various financial applications within the Ethereum network using their existing Bitcoin holdings. Earlier this year, Coinbase integrated the Lightning Network, enhancing BTC transfers to be quicker and more cost-effective.

This innovative product is well-suited for decentralized finance (DeFi) and offers numerous opportunities in this field. Bitcoin (BTC) owners can now explore cutting-edge DeFi functionalities. These possibilities encompass lending their BTC as liquidity within DeFi platforms or employing it as security to borrow other digital assets.

Among the Decentralized Finance (DeFi) initiatives that will initially back cbBTC are Curve, Aave, Compound, Mellow, Definitive, Steakhouse, and Maple.

On Coinbase, there won’t be a distinct order book or trading pair for cbBTC. Instead, if users transfer their Bitcoin (BTC) to specified Base and Ethereum addresses, these funds will instantly be exchanged 1:1 into cbBTC, and the reverse process also applies.

Users of the exchange can trade cbBTC on Decentralized Exchanges (DEXs) through Coinbase Wallet, as well as other external trading platforms that choose to incorporate it.

Currently, cbBTC is accessible to Coinbase users residing in countries such as the United States (excluding New York State), the United Kingdom, European Economic Area states, Singapore, Australia, and Brazil.

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2024-09-12 15:40