{"id":37660,"date":"2024-09-12T15:14:37","date_gmt":"2024-09-12T15:14:37","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/coinbases-wrapped-bitcoin-token-cbbtc-goes-live\/"},"modified":"2024-09-12T15:14:37","modified_gmt":"2024-09-12T15:14:37","slug":"coinbases-wrapped-bitcoin-token-cbbtc-goes-live","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/coinbases-wrapped-bitcoin-token-cbbtc-goes-live\/","title":{"rendered":"Coinbase&#8217;s wrapped Bitcoin token cbBTC goes live"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/09\/cbBTC-goes-live-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/09\/cbBTC-goes-live-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/09\/cbBTC-goes-live-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/09\/cbBTC-goes-live-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Coinbase launches cbBTC, an ERC20 token backed 1:1 by Bitcoin in its custody.<\/li>\n<li>cbBTC allows BTC holders to access DeFi apps like Aave, Compound, and MakerDAO.<\/li>\n<li>Over 843,783 Bitcoins back cbBTC, representing 4% of the total Bitcoin supply.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/coinjournal.net\/exchanges\/coinbase\/\">Coinbase<\/a>, the largest cryptocurrency exchange in the US, has officially <a href=\"https:\/\/www.coinbase.com\/zh-sg\/blog\/coinbase-wrapped-btc-cbbtc-is-now-live\">launched<\/a> its new tokenization product, Coinbase Wrapped Bitcoin (cbBTC), marking a significant development in the tokenization of <a href=\"https:\/\/coinjournal.net\/bitcoin\/what-is-bitcoin\/\">Bitcoin<\/a> across blockchains.<\/p>\n<p>The newly launched ERC20 token is fully backed 1:1 by Coinbase\u2019s Bitcoin holdings, allowing holders to interact with decentralized finance (DeFi) applications on <a href=\"https:\/\/coinjournal.net\/ethereum\/what-is-ethereum\/\">Ethereum<\/a> and Base.<\/p>\n<p>The release of cbBTC provides an innovative bridge between Bitcoin and Ethereum\u2019s DeFi ecosystem, giving Bitcoin holders more ways to lend, borrow, and earn yields with their assets.<\/p>\n<h2>cbBTC is backed by Coinbase\u2019s Bitcoin holdings<\/h2>\n<p>Coinbase\u2019s extensive Bitcoin holdings back the entire supply of cbBTC. As of now, Coinbase holds over 843,783 Bitcoins in custody, valued at around $48.7 billion, representing more than 4% of the total Bitcoin supply. This ensures robust liquidity for cbBTC holders.<\/p>\n<p>The number of cbBTC tokens in circulation will be directly limited by the amount of Bitcoin Coinbase owns.<\/p>\n<h2>How cbBTC works<\/h2>\n<p>The mechanics behind cbBTC are simple yet effective. When users transfer Bitcoin from Coinbase to an address on Base or Ethereum, their BTC is automatically converted into cbBTC at a 1:1 ratio. This conversion happens seamlessly, and the reverse process occurs when cbBTC is sent back to a Coinbase account, transforming the wrapped asset back into Bitcoin.<\/p>\n<p>Unlike a typical token launch, cbBTC will not have a separate order book or trading pair on Coinbase, but it will be accessible on decentralized exchanges (DEXs) like Aerodrome and Curve. Additionally, third-party exchanges may choose to list cbBTC in the future.<\/p>\n<h2>Expanding decentralized financial access<\/h2>\n<p>The introduction of cbBTC is not just a technical advancement but also part of Coinbase\u2019s broader mission to expand decentralized financial access.<\/p>\n<p>Will Robinson, Coinbase\u2019s Vice President of Engineering, has highlighted cbBTC\u2019s potential to bring \u201c1 billion people on-chain.\u201d<\/p>\n<p>By providing Bitcoin holders with access to DeFi applications such as Aave, Compound, and MakerDAO, cbBTC enhances the utility of Bitcoin, helping users integrate their BTC into a wider financial ecosystem.<\/p>\n<p>With the growing demand for Bitcoin-based DeFi products, cbBTC positions Coinbase as a leader in the tokenization space.<\/p>\n<p>Notably, Coinbase\u2019s move comes shortly after BitGo\u2019s announcement regarding custody services for wBTC, further fueling competition in the wrapped Bitcoin market.<\/p>\n<p>With support from major DeFi protocols, cbBTC is could play a key role in shaping the future of decentralized finance.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/coinbases-wrapped-bitcoin-token-cbbtc-goes-live\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Coinbase launches cbBTC, an ERC20 token backed 1:1 by Bitcoin in its custody. cbBTC allows BTC holders to access DeFi apps like Aave, Compound, and MakerDAO. Over 843,783 Bitcoins back cbBTC, representing 4% of the total Bitcoin supply. Coinbase, the largest [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":37661,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/37660"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=37660"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/37660\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/37661"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=37660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=37660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=37660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}