Practically two years after the collapse of FTX impacted Solana’s decentralized finance (DeFi) sector, Coinbase is trying to reintroduce bitcoin-based buying and selling to the Solana blockchain with its new token, cbBTC.
Lately launched, cbBTC is a bitcoin-backed token that customers can switch between their Coinbase accounts and Solana wallets, enabling simpler bitcoin transactions inside Solana’s DeFi ecosystem.
Solana’s DeFi sector has been with no dependable bitcoin token because the fall of FTX in November 2022, making soBTC – which is broadly used on Solana – unavailable.
This absence created a drawback for Solana in comparison with Ethereum, which presents a number of choices for bitcoin-backed tokens in its DeFi panorama. Coinbase’s cbBTC goals to fill this hole, with contributors on Solana-based platforms expressing optimism that the token may grow to be the go-to bitcoin alternative on Solana.
Bitcoin 🤝 Solana@Coinbase has formally launched cbBTC on Solana, including extra Bitcoin worth to Solana’s thriving DeFi ecosystem. pic.twitter.com/VKbPJc5s73
— Solana (@solana) November 7, 2024
A notable contributor to Solana mentioned there are “a lot larger hopes” for cbBTC’s success, particularly as bitcoin costs rise.
Coinbase’s transfer to difficulty cbBTC instantly on Solana may additionally scale back danger, in keeping with InfraRay, an affiliate at Solana-based decentralized change Raydium. InfraRay defined that cbBTC may enhance BTC liquidity on Solana, which might profit a number of DeFi protocols if it beneficial properties reputation.
BREAKING: @coinbase LAUNCHES $CBBTC, SPL TOKEN SUPPORTED 1:1 BY $BTC, ON SOLANA pic.twitter.com/QoMuFW6fCP
– DEGEN NEWS (@DegenerateNews) November 7, 2024
Coinbase Expands Bitcoin DeFi Entry
The cbBTC rollout contains $10 million price of Solana DeFi-ready tokens, with round $500,000 already circulating in buying and selling swimming pools on platforms like Meteora, Orca, and Kamino. Marius Ciubotariu, co-founder of Kamino, expressed optimism, suggesting that Solana may emerge as an alternative choice to Ethereum for bitcoin-backed DeFi operations.
Coinbase’s technique aligns with a broader plan to supply cross-chain choices for bitcoin-backed DeFi, enhancing entry throughout networks.