Coinbase Unveils Wrapped Bitcoin (cbBTC) on Base Network

Coinbase to Launch Wrapped Bitcoin (cbBTC) on Base Network

Coinbase has revealed plans to introduce cbBTC, a wrapped version of Bitcoin, on its Base network. While specific details remain undisclosed, this strategic move aims to broaden Coinbase’s tokenized asset offerings and potentially reshape the market for wrapped Bitcoin.

Expanding Tokenized Bitcoin on Ethereum-Compatible Chains

As the demand for tokenized Bitcoin on Ethereum-compatible chains continues to grow, Coinbase’s entry into this market could significantly alter market dynamics. Coinbase previously introduced cbETH, a wrapped Ethereum token, in August 2022. With a circulating supply of approximately 210,000 tokens, cbETH has experienced substantial adoption.

Expert Opinions and Market Impact

Jesse Pollak, the lead developer on Base, expressed his excitement about Bitcoin’s potential 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.”

Anndy Lian, a blockchain expert, views cbBTC as an opportunity for Coinbase to offer a more transparent alternative to Wrapped Bitcoin (WBTC). This comes amid concerns surrounding Justin Sun’s involvement with WBTC. BitGo, the company behind WBTC, recently partnered with BiT Global, a firm linked to Sun. Although Sun has clarified his strategic role, he emphasized that he does not have control over WBTC reserves. Currently, WBTC is the largest wrapped Bitcoin asset, with a market capitalization of $9 billion.

Key Takeaways

• Coinbase is launching cbBTC, a wrapped version of Bitcoin, on its Base network.
• cbBTC is expected to expand Coinbase’s tokenized asset offerings and impact the wrapped Bitcoin market.
• Jesse Pollak highlights the potential for a massive Bitcoin economy on Coinbase’s Base network.
• Anndy Lian sees cbBTC as a transparent alternative to Wrapped Bitcoin (WBTC), amidst concerns about Justin Sun’s involvement.
• WBTC remains the largest wrapped Bitcoin asset, with a market capitalization of $9 billion.