Coinbase set to delist WBTC amid cbBTC expansion
- Coinbase announced that it would suspend the trading of WBTC across all its platforms from December 19.
- Users would still be able to access their funds anytime and make withdrawals.
- Coinbase’s cbBTC launched on Ethereum-based Arbitrum as it continues its expansion.
Coinbase announced via an X post on Tuesday that it will suspend WBTC trading across all its platforms on December 19. Meanwhile, the exchange also revealed that its wrapped Bitcoin token, cbBTC, launched on Arbitrum earlier today.
WBTC takes a hit as Coinbase expands cbBTC
Crypto exchange, Coinbase, revealed its latest decision to suspend all trading activity for BitGo's wrapped Bitcoin token WBTC. The exchange claims the decision is based on the token's failure to meet its listing standards.
While the suspension will commence on December 19, WBTC holders can still access their funds and make withdrawals at any time on Coinbase.
The company also stated that it moved its order books on the token to "limit-only" mode, meaning traders can only place limit orders with WBTC.
The WBTC team expressed strong displeasure at Coinbase's decision, stating they have maintained good cooperation with the exchange.
"We have maintained active communication and full cooperation with all due diligence processes, including with Coinbase, to ensure that our product meets all compliance standards," the WBTC team wrote in an X post on Tuesday.
The team also requested that Coinbase reconsidered its decision, stating they would answer any questions that may have warranted WBTC's delisting.
Coinbase's action may have been largely influenced by the recent controversy surrounding WBTC's custodian BitGo's decision to enter a joint venture deal with BitGlobal, which was co-founded by Justin Sun. Sun's involvement raised concerns about the credibility of a continued decentralized structure for WBTC.
Other crypto community members argued that the recent expansion of Coinbase's wrapped Bitcoin token, cbBTC, has made the exchange insecure, prompting the delisting of WBTC.
cbBTC has been integrated across several blockchain platforms in the past few months, including the Solana ecosystem. Coinbase announced on Tuesday that the wrapped Bitcoin token has made its way onto the Arbitrum network.
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
