Coinbase, the leading US-based cryptocurrency exchange, announces the launch of Coinbase Wrapped Bitcoin (cbBTC), an Ethereum (ETH)-based token backed by Bitcoin (BTC).
In a new thread on social media platform X, Coinbase says that cbBTC is now on-chain and ready, meaning holders of the leading crypto asset by market cap can now access decentralized finance (DeFi) applications on the Base and Ethereum blockchains.
According to Coinbase, cbBTC will be available on many leading DeFi networks, including Aave (AAVE), Curve FInance (CRV), Compound Finance (COMP), Moonwell (WELL), and Maple Finance (MPL).
In a new blog post, Coinbase explains how BTC holders can use Coinbase’s wrapped version of the crypto king to streamline their DeFi experience.
“cbBTC removes a key friction point by allowing customers to use the Bitcoin they already hold in new ways on-chain. cbBTC is designed to be seamlessly compatible with DeFi applications, so users can now leverage new DeFi use cases like providing their Bitcoin as liquidity to DeFi protocols, or using it as collateral to borrow other crypto assets…
When Coinbase users send their BTC from Coinbase to an address on Base or Ethereum, those BTC will be automatically converted 1:1 to cbBTC. When users receive cbBTC into their Coinbase accounts, they will be converted 1:1 from cbBTC to BTC.
At the time of writing, Bitcoin is trading at $57,688, a gain of 2% over the past 24 hours.
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Featured image: Shutterstock/tostphoto
