Coinbase set to launch tokenized Bitcoin on Base network

Coinbase revealed its plans to launch a wrapped Bitcoin token with the ticker cbBTC on its Base network in an X post on Wednesday. The announcement comes after Bitgo announced its plans to move wBTC ownership to Bit Global, stirring massive criticism.

Coinbase prepares for cbBTC launch, wBTC FUD spreads

Crypto exchange Coinbase is preparing to release a tokenized Bitcoin for users on its Layer-2 network Base, according to a post on its X account on Wednesday. The exchange posted cbBTC and followed it up with a comment saying "coming soon," hinting that the launch of its tokenized Bitcoin is imminent.

The Coinbase tokenized Bitcoin cbBTC will launch on the Base network — Coinbase's Ethereum-based Layer-2 — and will be pegged 1:1 with Bitcoin's market price, providing Base users access to the largest crypto asset by market cap.

Base CEO Jesse Pollak also expressed excitement about the upcoming token launch following Coinbase's announcement. 

"To say it out loud: I love bitcoin, am so grateful for its role in kick starting crypto, and we're going to build a massive Bitcoin economy on Base," Jesse wrote on X. 

The move from Coinbase comes after the crypto community expressed concerns about BitGo's plans to transfer wBTC's custody to Bit Global, a platform linked to Tron blockchain founder, Justin Sun.

Several crypto community members reacted negatively to the announcement due to Sun's reputation, claiming BitGo's move may be detrimental to wBTC.

As a result, MakerDAO's risk team has proposed a shutdown of borrowing options for wBTC to reduce the potential risks involved with the move.

However, Justin Sun urged the crypto community that wBTC would function as it always has and that no changes would be made to its supply.

Meanwhile, BitGo also expressed in an X post that it will pay attention to users' potential issues and concerns.

Bitcoin is down over 3% in the past 24 hours.