Coinbase has hinted on the potential launch of a brand new product known as “cbBTC,” sparking hypothesis that the US-based crypto change could also be creating its personal wrapped Bitcoin token.
Coming quickly.
— Coinbase 🛡️ (@coinbase) August 14, 2024
Coinbase’s official account merely acknowledged “cbBTC” adopted by “coming quickly” in a subsequent remark. An hour later, Jesse Pollak, head of Coinbase’s layer-2 community Base, expressed enthusiasm for Bitcoin and acknowledged that Base would construct a “huge Bitcoin financial system” on its community.
The cryptic messages from Coinbase and Pollak come simply days after controversy erupted involving BitGo, the crew behind Wrapped Bitcoin (WBTC), and Tron founder Justin Solar. BitGo just lately introduced plans to switch management of WBTC to a three way partnership together with itself, Hong Kong-based funding supervisor BiT International, and Solar’s Tron ecosystem.
This announcement raised issues inside the decentralized finance (DeFi) group, with some calling for WBTC help to be pulled from main protocols. Crypto threat administration agency Block Analitica Labs printed a proposal on MakerDAO’s governance discussion board requesting the protocol shut all new WBTC money owed and forestall new borrowing in opposition to WBTC collateral.
BitGo CEO Matt Belshe dismissed safety issues, stating the controversy was a “response to the Justin Solar title” slightly than a correct evaluation of the information. Belshe later clarified that the underlying WBTC safety protocols would stay unchanged. Solar additionally addressed the problem, stating there had been “no modifications to WBTC” and his involvement didn’t embrace direct entry to funds.
The potential launch of a Coinbase-backed wrapped Bitcoin token may present an alternative choice to WBTC for customers looking for Bitcoin publicity in DeFi purposes.
Wrapped Bitcoin tokens enable Bitcoin to be utilized on non-Bitcoin blockchains, primarily Ethereum, enhancing interoperability between totally different blockchain networks and enabling Bitcoin holders to take part in DeFi actions with out changing to different cryptocurrencies.
