Trading platform Coinbase, in anticipation of the growth of quotations of Ethereum-based products, has launched a new wrapped utility token cbETH.
Coinbase Wrapped Staked ETH (cbETH) is a utility token representing ETH2.
“The wrapped cbETH token can be sold or sent outside the platform, while ETH2 will remain locked until the Ethereum protocol upgrade occurs,” the exchange said.
The Coinbase team says that cbETH is not suitable for tracking the price of Ether, but rather represents staked ETH plus all accrued interest on staking – starting June 16, 2022. The exchange has promised that customers who stake ETH on the exchange will receive a cbETH ERC20 utility token.
Coinbase positions the token as a liquid representation of staked ETH. The site stated that holders of staked ETH or ETH2 will be able to wrap their ETH2 and receive cbETH through the trading platform website. Adding that the packaging functionality will be “gradually rolled out to relevant users throughout the day.” The company emphasized that as soon as the asset is sufficiently collateralized, trading in the cbETH-USD pair will be launched in stages, and cbETH support will be limited in some jurisdictions.
Recently, Coinbase CEO Brian Armstrong said that the exchange will stop participating in ETH staking if US regulators require to censor transactions. A little later, he announced that, faced with losses and persecution by the authorities, he was changing his profit model in favor of products that were resistant to market changes.
Source: Bits
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