Coinbase, one of many main cryptocurrency exchanges, has formally unveiled its wrapped Bitcoin token, cbBTC, accessible on Ethereum and Base.
Introduced on September 12, cbBTC is tied to Bitcoin with a 1:1 backing, which means every cbBTC token is absolutely collateralized by an equal quantity of Bitcoin held by Coinbase.
It will not have its personal buying and selling pairs or order books on Coinbase.
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The mechanics behind this wrapped Bitcoin are easy: customers can mint cbBTC by sending Bitcoin to an Ethereum or Base handle. The method works in reverse as nicely—when cbBTC is distributed to a Coinbase handle, it’s mechanically redeemed for conventional Bitcoin.
The aim of tokenizing Bitcoin is to open up decentralized finance (DeFi) functionalities for the cryptocurrency, which is commonly seen as restricted on this area. For instance, with cbBTC, individuals can use their Bitcoin as collateral for loans or lend it to earn curiosity.
At launch, cbBTC will likely be built-in with a number of DeFi platforms comparable to Aave, Compound Finance, Morpho, Spark, and Moonwell, amongst others. Coinbase is eyeing future expansions to extra blockchains and ecosystems; nonetheless, no particular timelines or particulars had been supplied within the preliminary announcement.
This transfer represents one other step towards growing Bitcoin’s presence within the DeFi area, offering extra methods for customers to make the most of their Bitcoin holdings.
In different information, Coinbase is going through a lawsuit from the US Securities and Trade Fee, which accused the crypto alternate of breaking federal securities legal guidelines. Not too long ago, Coinbase requested to overview SEC Chair Gary Gensler’s personal emails, a transfer the SEC is pushing again towards.
Gode is a Web3 Market Analyst who researches crucial trade occasions and interprets how they have an effect on the broader Web3 area. Her formal training in media tradition & digital rhetoric permits her to make use of a methodical strategy to evaluating vital Web3 information knowledge, together with large-scale occasions and the broader social sentiment throughout the ecosystem.Gode is a mutilingual skilled, having studied in a number of universities all throughout Europe. This enables her to have a one-of-a-kind alternative to investigate Web3 social sentiments spanning completely different cultures and languages and, in flip, develop a a lot deeper understanding of how the Web3 area is rising inside completely different communities. With the remainder of her group, Gode works to establish essential crypto information patterns and supply unbiased and data-driven data.Gode’s passions embody working and speaking with individuals, and when she’s not researching Web3 information, she spends her time touring and watching true crime documentaries.
