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In a tweet early Wednesday, Coinbase announced that it would soon introduce “cbBTC,” intended to rival Wrapped Bitcoin (WBTC). In a recent update, Coinbase has initiated a pre-launch registration portal for cbBTC, which can be accessed using various wallets.
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cbBTC pre-launch registration is now active. https://t.co/ue1JUa48eD pic.twitter.com/ySMDoeSbwp— Coinbase (@USC_Baseball) August 14, 2024
The leading cryptocurrency exchange aims to establish a “Bitcoin economic system on the Base network,” as reported by journalist and blockchain commentator Colin Wu.
“WBTC has raised concerns within the community due to Justin Sun’s recent involvement. cbBTC is believed to be a competitor to WBTC.”
Coinbase tweeted about “cbBTC,” indicating that it will be launched soon and will create a significant Bitcoin economic system on the Base network. WBTC has raised community concerns due to Justin Sun’s recent involvement. cbBTC is thought to be a competitor of WBTC.…
— Wu Blockchain (@WuBlockchain) August 14, 2024
Justin Sun, the founder of Tron, has recently addressed the growing concerns regarding his association with Wrapped Bitcoin. The cryptocurrency community has been engaged in a vigorous debate over Sun’s role in the custody operations of WBTC.
In a recent statement, he clarified his position and the security measures related to WBTC. This clarification followed BitGo’s announcement regarding the transition of WBTC business to multi-institutional custody.
Additionally, MakerDAO’s risk management unit BA Labs has suggested offboarding WBTC. Meanwhile, Aave’s risk division, Chaos Labs, is gradually determining how to handle WBTC.
After Coinbase’s announcement of ‘cbBTC,’ Jesse Pollak, head of Coinbase’s Base network, conveyed her enthusiasm for Bitcoin.
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“We’re going to build a massive bitcoin economy on Base,” Pollak stated.
to say it out loud: I love bitcoin, am so grateful for its role kickstarting crypto, and we’re going to build a massive bitcoin economy on @base.
— Jesse Pollak (jesse.xyz)
(@jessepollak) August 14, 2024
(@jessepollak) August 14, 2024Some analysts speculate that the announcement of cbBTC may refer to Coinbase’s own wrapped Bitcoin product, which could potentially be introduced on the Layer-2 chain Base.
One analyst commented on X, “cbBTC just means more collateral for DeFi on ETH.”
Coinbase’s cbBTC Plans
Coinbase had previously introduced Wrapped Staked ETH (cbETH), which represents staked Ethereum (ETH) in a tradable format.
“cbETH offers the flexibility to sell, transfer, or utilize it,” the exchange noted. Furthermore, there are no fees associated with wrapping staked ETH. The cbBTC may reflect a similar approach upon its launch.
Moreover, if Coinbase plans to launch cbBTC on the Base chain, it would likely come with advantages such as reduced fees for minting and redeeming tokens, and encourage increased utilization of WBTC.
The post Coinbase Hints to Launch Wrapped Staked BTC ‘cbBTC’ on Base Chain appeared first on Cryptonews.
