Coinbase introduces cbBTC – Coinbase Wrapped BTC – an ERC20 token backed 1:1 by Bitcoin, which Coinbase holds.
In line with a press launch shared with crypto.information, the cbBTC token is now out there on Base and Ethereum (ETH).
Wrapped Bitcoin is a tokenized model of Bitcoin (BTC) that runs on Ethereum or different blockchains, giving BTC holders entry to DeFi functions. Coinbase’s cbBTC is the newest addition to the packaged asset class, following the likes of WBTC (WBTC).
In August, Coinbase posted a cryptic tweet a couple of newly packaged Bitcoin product. The information was introduced on Coinbase’s official X account with a easy “cbBTC” adopted by a “coming quickly” remark.
Then on September 11, the Base X account tweeted a emblem believed to be the emblem for the cbBTC.
pic.twitter.com/Mg5Sw1B2zg
— Primary (@base) September 11, 2024
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Particulars of cbBTC
Coinbase customers can now convert their Bitcoin to cbBTC when switching their accounts to Base or Ethereum addresses. This token can be utilized in well-liked DeFi protocols akin to Aave (AAVE), Compound (COMP), and MakerDAO, permitting customers to lend, lend, and earn returns with their Bitcoin.
CbBTC additionally gives safe liquidity by being totally backed by Bitcoin held in custody by Coinbase, which has a monitor report of over 10 years. This transfer goals to offer Bitcoin holders with higher utility, permitting them to entry decentralized monetary functions utilizing the Bitcoin they already personal.
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How cbBTC works
When BTC is distributed from Coinbase to an handle on Base or Ethereum, it’s routinely transformed 1:1 to cbBTC. While you obtain cbBTC into the Coinbase account, it is going to be transformed 1:1 from cbBTC to BTC.
CbBTC won’t have a separate order guide or buying and selling pair on Coinbase. Nevertheless, it is going to be out there to commerce on DEXs utilizing Coinbase Pockets and will be listed on different third-party exchanges that select to assist it.
At launch, cbBTC ship and obtain will probably be out there on Coinbase within the US (excluding New York State), UK, EEA states, Singapore, Australia and Brazil. It’ll even be accessible globally on Base and Ethereum.
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