Coinbase has unveiled Coinbase Wrapped Bitcoin (cbBTC), giving users a gateway to decentralized finance (defi) apps on Ethereum and Base, using bitcoin (BTC). The cbBTC token is essentially a wrapped version of bitcoin, fully backed by BTC held in Coinbase’s custody.
Coinbase Wrapped Bitcoin Opens New Defi Opportunities
According to the San Francisco-based crypto exchange, cbBTC opens up new possibilities for millions of Coinbase customers, allowing them to utilize their bitcoin across various defi applications. By integrating bitcoin liquidity with the Ethereum and Base networks—two highly used blockchain protocols—it simplifies access to decentralized financial services.
In the blog post, Coinbase announced that users can now participate by providing liquidity, using bitcoin as collateral, and trading on decentralized exchanges (dex). With its long-standing crypto custody experience for both institutional and retail clients worldwide, Coinbase aims to position cbBTC as a reliable and secure option.
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Unlike traditional systems, cbBTC doesn’t use a separate order book on Coinbase. Instead, bitcoin is automatically converted to cbBTC when transferred to supported networks and vice versa. The token can be traded on dex platforms using Coinbase Wallet, and the company plans to extend cbBTC support to additional blockchains soon.
Initially, Coinbase revealed that this service will be accessible in the U.S. (excluding New York), the U.K., EEA countries, Singapore, Australia, and Brazil, with further expansion possible through the Ethereum and Base ecosystems. This development follows Bitgo’s shift in custody partners for wrapped bitcoin (WBTC) through a collaboration with Bit Global.
Source: Bitcoin
