Cryptocurrency exchange Coinbase has announced the launch of cbBTC, an ERC-20 token backed by the company’s Bitcoin balance sheet in a one-to-one ratio.
cbBTC is onchain.
cbBTC is an ERC20 token that is backed 1:1 by Bitcoin (BTC) held by Coinbase.
This means millions of BTC holders can now securely access DeFi apps on @base and Ethereum ecosystems—with more chains coming soon.
Here’s what you need to know ↓ pic.twitter.com/nF8mF3JGms
— Coinbase 🛡️ (@coinbase) September 12, 2024
Coinbase announced this project in mid-August 2024. At the initial stage, the asset will be available only in two networks – Base and Ethereum, however, as the team stated, this list will be expanded in the future.
The release states that cbBTC solves one of the key problems of Bitcoin by allowing it to flow freely in the DeFi ecosystem. The user can use wrapped assets to secure protocols, borrow funds, and earn income.
Already at the initial stage, cbBTC supports many decentralized applications, Coinbase said. These are the Aerodrome and Curve exchanges, credit protocols including Aave, the RWA platform Maple, and others.
Notably, the exchange first announced the project amid criticism of the issuer of WBTC, another wrapped bitcoin.
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Source: Cryptocurrency
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