Coinbase is rolling out cbBTC — Coinbase Wrapped BTC — an ERC20 token backed 1:1 by Bitcoin, which Coinbase holds.
Based on a press launch shared with crypto.information, the cbBTC token is now obtainable 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 purposes. Coinbase’s cbBTC is the most recent addition to the wrapped asset class, following the likes of WBTC (WBTC).
In August, Coinbase posted a cryptic tweet a few new wrapped Bitcoin product. The information was introduced on Coinbase’s official X account with a easy “cbBTC” adopted by a “coming quickly” remark.
Then, on Sept. 11, the Base X account tweeted a emblem that was assumed to be the emblem for the cbBTC.
pic.twitter.com/Mg5Sw1B2zg
— Base (@base) September 11, 2024
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Particulars of cbBTC
Coinbase customers can now convert their Bitcoin to cbBTC when transferring from their accounts to Base or Ethereum addresses. This token can be utilized in standard DeFi protocols like Aave (AAVE), Compound (COMP), and MakerDAO, permitting customers to lend, borrow, and earn yields with their Bitcoin.
CbBTC additionally ensures safe liquidity by being absolutely backed by Bitcoin held in Coinbase custody, which has a observe report of over 10 years. This transfer goals to offer extra utility for Bitcoin holders, permitting them to entry decentralized finance purposes utilizing the Bitcoin they already personal.
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How cbBTC works
When sending BTC from Coinbase to an tackle on Base or Ethereum, it is going to be robotically transformed 1:1 to cbBTC. When receiving cbBTC within the Coinbase account, it is going to be transformed 1:1 from cbBTC to BTC.
CbBTC won’t have a separate order ebook or buying and selling pair on Coinbase. Nevertheless, it is going to be obtainable to commerce on DEXs utilizing Coinbase Pockets and could also be listed on different third-party exchanges that select to assist it.
At launch, cbBTC ship and obtain will probably be obtainable on Coinbase within the U.S. (excluding New York State), the UK, EEA states, Singapore, Australia, and Brazil. It is going to even be accessible globally on Base and Ethereum.
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