Bitcoin-cbbtc-gID_7.jpg@png” />
In summary
- Cryptocurrency exchange Coinbase launched its wrapped Bitcoin product, cbBTC, on Solana following its debut in September.
- Coinbase hopes cbBTC will be used in decentralized finance (DeFi) and allow users to access Bitcoin on other networks.
- The move to Solana was welcomed by decentralized exchanges like Orca and Drift, which celebrated the arrival of cbBTC.
Cryptocurrency exchange Coinbase said Thursday that its wrapped Bitcoin product, cbBTC, has launched on Solana following its debut in September, as it looks to expand its use outside of the Ethereum ecosystem.
Representing the first token issued by the San Francisco-based exchange in Solana, Coinbase said the cbBTC will take the form of a so-called SPL token. According to Solana documentation, SPL tokens can be used to represent fungible and non-fungible assets.
Whether traded on a decentralized exchange or used as collateral in a lending protocol, Coinbase’s cbBTC is expected to be used in decentralized finance (DeFi). Backed 1:1 with Bitcoin, the token effectively allows cryptocurrency users to access Bitcoin on other networks.
As Solana’s DeFI ecosystem competes for cryptocurrency users, Coinbase’s product is cementing the presence of one of the industry’s most popular exchanges in the Ethereum competitor. Given the product’s rapid rise on Ethereum and Coinbase’s layer-2 scaling solution, Base, the wrapped product could find similar success as a means of using Bitcoin on Solana.
Since it was introduced earlier this year, cbBTC has challenged Bitcoin-based incumbents such as the WBTC launched by BitGo. Even though WBTC has gained $11 billion in market capitalization since 2019, the total value of cbBTC has surpassed $1 billion over the course of nine weeks.
The move to Solana was welcomed by several decentralized exchanges operating on Solana, a fast Layer 1 network that has this year rivaled Ethereum in terms of DeFi activity. Among the enthusiastic projects were Orca and Drift, which issued celebratory statements on Twitter (aka X).
“Drift welcomes Coinbase Wrapped Bitcoin to Solana,” Drift said, adding that users will be able to “start using Coinbase’s cbBTC as collateral for trading on Drift.”
Coinbase’s foray into the wrapped Bitcoin space has coincided with some controversy surrounding BitGo’s product. After BitGo revealed a partnership with Hong Kong-based BiT Global in August to diversify its custody operations, the firm’s connection to Justin Sun raised eyebrows, as the Tron co-founder has vetted Coinbase’s product in that time.
Not long ago, soBTC was a popular form of Bitcoin wrapped in Solana. Believed to have been issued by the now-collapsed cryptocurrency exchange FTX or its sister firm Alameda Research, the token was decoupled along with the collapse of former FTX CEO Sam Bankman-Fried’s empire in November 2022.
Coinbase initially said its Bitcoin-based product would arrive on Solana in late September, announcing the move at the Solana Breakpoint in Singapore. Coinbase Singapore Country Director Hassan Ahmed described the move as a no-brainer, during the annual Solana conference.
“We recently launched cbBTC on Base, but our users love Solana, and so do we,” he said. “So we are very excited to announce that we will also be bringing native cbBTC to Solana.”
Edited by Sebastian Sinclair
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
