Coinbase launches cbBTC on Base and Ethereum

In an X post on Thursday, Coinbase announced the launch of its wrapped Bitcoin token, cbBTC, on its Layer-2 network Base and the Ethereum Mainnet.

cbBTC launches on Base, Ethereum to give DeFi users BTC exposure

Coinbase announced that it has launched cbBTC — its wrapped Bitcoin token — on its Layer-2 network Base and the Ethereum blockchain. With cbBTC, Coinbase aims to offer DeFi users exposure to Bitcoin's liquidity and price movement. cbBTC will be backed by Bitcoin reserves, allowing it to maintain a 1:1 price peg with the number one cryptocurrency.

Wrapped tokens are cryptocurrencies that represent another token on a different blockchain network, and they are priced at the same value as the original token.

With Coinbase cbBTC, DeFi users can leverage BTC for yield farming, lending, borrowing, liquidity provision, etc. Additionally, the network provides automatic conversion to cbBTC for users who transfer Bitcoin from Coinbase to Base Layer 2 or Ethereum wallets.

Following the launch, cbBTC was integrated into several DeFi protocols on the Ethereum network, including Curve Finance, Aave, Sky Protocol, Aerodrome, Compound, Maple, Moonwell, Morpho Labs and others.

cbBTC is only available to UK, Australia, Singapore and US users, excluding New York. 

Meanwhile, cbBTC's launch came only a few weeks after crypto community members criticized wBTC issuer BitGo for attempting to hand over the token management to Bit Global. 

One of the major concerns of users was the somewhat controversial reputation of Bit Global's co-founder, Justin Sun. Sun, however, assured users that no changes would be made to BitGo's multi-signature technology and deep cold storage.

The negative reactions led MakerDAO community members to propose cutting debt limits for wBTC.