Coinbase launches wrapped Bitcoin token on Solana network
- Coinbase announced its wrapped Bitcoin token, cbBTC, is now live on the Solana network.
- cbBTC is the first Coinbase token to launch on the Solana ecosystem.
- Investors can leverage cbBTC to access Bitcoin's high liquidity across Solana-based protocols.
Crypto exchange Coinbase announced on Thursday that it has launched its synthetic Bitcoin token, cbBTC token, on the Solana network, marking its first token issuance on the Layer-1 platform. The new token will allow users to stake Bitcoin on Solana and use it as lending collateral.
cbBTC goes live on the Solana network
Coinbase revealed that it has issued cbBTC on the Solana blockchain. This marks Coinbase's first token launch on the network, improving Bitcoin's DeFi exposure.
cbBTC is a wrapped Bitcoin pegged 1:1 with the top digital asset. The token was first launched in September on Coinbase's Layer 2 network Base.
With cbBTC's launch, Solana now hosts three wrapped Bitcoin tokens, including WBTC and tBTC.
Additionally, users can now lend, stake, and use cbBTC as liquidity on Solana DeFi applications. cbBTC will also launch on platforms like Jupiter Exchange, Kamino Finance, Drift Protocol, Raydium Protocol and Phoenix Trade on day 1.
The announcement has stirred the attention of several crypto community members who suggested that the launch may be great for the Solana DeFi ecosystem.
"Better wrapped BTC liquidity has many second-order effects for the Solana defi eco. Improved BTC liquidity leads to better BTC-PERP liquidity as it enables basis traders to arb funding rates with larger size," said Lil Perp, co-founder of Drift Protocol.
Another X user, the Web3 meme guy, noted that the launch could also benefit Bitcoin's Rune ecosystem.
The introduction of cbBTC on Solana a tokenized #Bitcoin (BTC) asset backed 1:1 by actual BTC held in custody by Coinbase could influence the broader Bitcoin ecosystem, including projects like #Rune (Bitcoin), in a few key ways, let me know what you think about this
— The Web3 Meme Guy (@Web3MemeGuy) November 7, 2024
1.… https://t.co/iOAhQZRuMS
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
