Coinbase has officially launched cbBTC, a wrapped version of Bitcoin, allowing users to utilize their Bitcoin holdings in decentralized finance (DeFi) applications on both Ethereum and Base networks. This new feature marks a significant leap for Bitcoin holders, expanding Bitcoin’s use beyond just trading or storing value.
With cbBTC, Coinbase users can now transfer their Bitcoin to Ethereum and Base networks seamlessly, unlocking access to DeFi applications like decentralized exchanges (DEXs), lending platforms, and yield farming protocols. This innovation allows Bitcoin holders to leverage their assets without selling or converting them into other cryptocurrencies.
A key advantage of cbBTC is its 1:1 backing by actual Bitcoin held in custody by Coinbase, which is known for its secure management of crypto assets. This makes cbBTC a reliable way to access deeper liquidity in the DeFi space. By wrapping Bitcoin, Coinbase is creating a more interconnected financial ecosystem that can accelerate Bitcoin’s adoption across DeFi platforms.
One of the challenges Bitcoin holders have traditionally faced is the difficulty of integrating their Bitcoin into DeFi applications. With the introduction of cbBTC, users can now provide liquidity, lend, or even borrow against their Bitcoin on popular platforms such as Uniswap, Aave, Compound, and Curve. This opens up new financial opportunities for Bitcoin holders in the decentralized finance ecosystem.
In addition to its use in DeFi, cbBTC is expected to support cross-chain swaps, oracles, and real-world asset protocols, broadening its potential applications. Coinbase is aiming to make Bitcoin more versatile and integrated with multiple blockchain networks.
Converting Bitcoin to cbBTC is a seamless process for Coinbase users. When users send Bitcoin from Coinbase to a Base or Ethereum address, the system automatically converts it to cbBTC on a 1:1 basis. Similarly, when users receive cbBTC in their Coinbase account, it is instantly converted back to Bitcoin.
While cbBTC will not have a dedicated order book or trading pair on Coinbase’s main platform, it will be available on decentralized exchanges (DEXs) and third-party platforms that choose to support it.
At launch, cbBTC will be accessible to users in the U.S., UK, EEA states, Singapore, Australia, and Brazil, with global availability through Ethereum and Base networks. Coinbase plans to expand cbBTC’s reach to additional blockchain networks, ensuring that Bitcoin can play a larger role in the DeFi space.
By introducing cbBTC, Coinbase is pushing the boundaries of Bitcoin’s integration into DeFi, allowing holders to participate in decentralized finance opportunities while keeping their Bitcoin holdings intact.