Coinbase has hinted on the doable launch of a brand new product referred to as ‘cbBTC’, sparking hypothesis that the US-based crypto alternate could develop its personal wrapped Bitcoin token.
Obtainable quickly.
— Coinbase
(@coinbase) August 14, 2024
Coinbase’s official account merely stated “cbBTC,” adopted by “coming quickly” in a subsequent remark. An hour later, Jesse Pollak, head of Coinbase’s layer 2 community Base, expressed his enthusiasm for Bitcoin, stating that Base would construct a “large Bitcoin economic system” on its community.
Coinbase and Pollak’s cryptic messages come simply days after controversy erupted surrounding BitGo, the staff behind Wrapped Bitcoin (WBTC), and Tron founder Justin Solar. BitGo lately introduced plans to switch management of WBTC to a three way partnership together with itself, Hong Kong-based funding supervisor BiT World and Solar’s Tron ecosystem.
This announcement raised considerations throughout the decentralized finance (DeFi) group, with some calling for WBTC assist to be faraway from key protocols. Crypto threat administration agency Block Analitica Labs printed a proposal on MakerDAO’s governance discussion board, calling on the protocol to shut all new WBTC debt and forestall new loans in opposition to WBTC collateral.
BitGo CEO Matt Belshe dismissed safety considerations, stating that the controversy was a “response to the Justin Solar title” quite than an correct evaluation of the info. Belshe later clarified that the underlying WBTC safety protocols would stay unchanged. Solar additionally addressed the problem, stating that there had been “no adjustments to the WBTC” and that his involvement didn’t embrace direct entry to funds.
The potential launch of a Coinbase-backed wrapped Bitcoin token might present an alternative choice to WBTC for customers on the lookout for Bitcoin publicity in DeFi functions.
Wrapped Bitcoin tokens enable Bitcoin for use on non-Bitcoin blockchains, primarily Ethereum, enhancing interoperability between completely different blockchain networks and permitting Bitcoin holders to take part in DeFi actions with out having to transform to different cryptocurrencies.