Coinbase has announced plans to launch cbBTC, a wrapped version of Bitcoin, on its Base network. Although the details are not yet disclosed, this move aims to expand Coinbase's tokenized asset offerings and potentially reshape the landscape of wrapped Bitcoin.
As demand for tokenized Bitcoin on Ethereum-compatible chains grows, Coinbase's entry into this space could significantly impact market dynamics. Coinbase previously launched cbETH, a wrapped Ethereum token, in August 2022. With a circulating supply of about 210,000, cbETH has seen substantial adoption.
Jesse Pollak, the lead developer on Base, expressed enthusiasm for Bitcoin's potential on Coinbase's layer-2 network, stating: “I love bitcoin, am so grateful for it's role kickstarting crypto, and we're going to build a massive bitcoin economy on @base.”
Anndy Lian, a blockchain expert, views cbBTC as a chance for Coinbase to offer a transparent alternative to Wrapped Bitcoin (WBTC) , especially amid concerns about Justin Sun's involvement. BitGo, behind WBTC, recently partnered with BiT Global, linked to Sun, prompting him to clarify his strategic role without control over WBTC reserves. WBTC is currently the largest wrapped Bitcoin asset, boasting a market capitalization of $9 billion.