Coinbase has unveiled plans to introduce cbBTC, a wrapped version of Bitcoin, on its Base network. While specifics are yet to be announced, this development is set to broaden Coinbase’s range of tokenized assets and potentially alter the landscape of wrapped Bitcoin.
The move comes as demand for tokenized Bitcoin on Ethereum-compatible chains continues to rise. Coinbase’s foray into this arena could have a notable impact on market dynamics. The company previously introduced cbETH, a wrapped Ethereum token, in August 2022. With approximately 210,000 tokens in circulation, cbETH has experienced significant adoption.
Jesse Pollak, the lead developer for Base, expressed optimism about the potential of Bitcoin on Coinbase’s layer-2 network, stating, “I love bitcoin, am so grateful for its role in kickstarting crypto, and we’re going to build a massive bitcoin economy on @base.”
Blockchain expert Anndy Lian views cbBTC as an opportunity for Coinbase to provide a transparent alternative to Wrapped Bitcoin (WBTC), particularly in light of recent concerns surrounding Justin Sun’s involvement. BitGo, the entity behind WBTC, has recently partnered with BiT Global, which is associated with Sun. This partnership prompted Sun to clarify his strategic role without control over WBTC reserves. WBTC remains the largest wrapped Bitcoin asset, with a market capitalization of $9 billion.
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