Coinbase Unveils Exciting New Bitcoin-Backed Token: cbBTC on Ethereum!

Coinbase Launches cbBTC

Top US-based crypto exchange platform Coinbase has officially announced the launch of Coinbase Wrapped Bitcoin (cbBTC), an innovative Bitcoin (BTC)-backed token on the Ethereum (ETH) blockchain.

In a recent thread on the social media platform X, Coinbase shared that cbBTC is now on-chain and ready, enabling holders of Bitcoin to access decentralized finance (DeFi) applications on both the Base and Ethereum blockchains.

DeFi Integration

According to Coinbase, cbBTC will be available on several prominent DeFi networks, including:

• Aave (AAVE)
• Curve Finance (CRV)
• Compound Finance (COMP)
• Moonwell (WELL)
• Maple Finance (MPL)

In a detailed blog post, Coinbase explained how BTC holders can utilize this wrapped version to enhance their DeFi experience.

“cbBTC removes a key point of friction by allowing customers to use Bitcoin they already hold in new ways on-chain. cbBTC is built to be seamlessly compatible with DeFi applications, so users can now tap into novel DeFi use cases like providing their Bitcoin as liquidity to DeFi protocols, or using it as collateral to borrow other crypto assets.”

When users transfer their BTC from Coinbase to an address on Base or Ethereum, it will be automatically converted 1:1 to cbBTC. Similarly, receiving cbBTC in Coinbase accounts will convert it back to BTC at the same ratio.

Current Market Status

As of the latest update, Bitcoin is trading at $57,688, marking a 2% gain over the last 24 hours.