Key Takeaways
- Coinbase’s potential cbBTC product follows intently after BitGo’s controversial WBTC administration adjustments.
- Wrapped Bitcoin tokens permit Bitcoin to be utilized on non-Bitcoin blockchains, primarily Ethereum.
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Coinbase has hinted on the potential launch of a brand new product referred to as “cbBTC,” sparking hypothesis that the US-based crypto change could also be growing its personal wrapped Bitcoin token.
https://x.com/coinbase/standing/1823529439663403040
Coinbase’s official account merely said “cbBTC” adopted by “coming quickly” in a subsequent remark. An hour later, Jesse Pollak, head of Coinbase’s layer-2 community Base, expressed enthusiasm for Bitcoin and said that Base would construct a “large Bitcoin economic system” on its community.
The cryptic messages from Coinbase and Pollak come simply days after controversy erupted involving BitGo, the staff behind Wrapped Bitcoin (WBTC), and Tron founder Justin Solar. BitGo just lately introduced plans to switch management of WBTC to a three way partnership together with itself, Hong Kong-based funding supervisor BiT International, and Solar’s Tron ecosystem.
This announcement raised considerations inside the decentralized finance (DeFi) group, with some calling for WBTC help to be pulled from main protocols. Crypto danger administration agency Block Analitica Labs revealed a proposal on MakerDAO’s governance discussion board requesting the protocol shut all new WBTC money owed and forestall new borrowing in opposition to WBTC collateral.
BitGo CEO Matt Belshe dismissed safety considerations, stating the controversy was a “response to the Justin Solar title” reasonably than a correct evaluation of the info. Belshe later clarified that the underlying WBTC safety protocols would stay unchanged. Solar additionally addressed the problem, stating there had been “no adjustments to WBTC” and his involvement didn’t embrace direct entry to funds.
The potential launch of a Coinbase-backed wrapped Bitcoin token might present a substitute for WBTC for customers searching for Bitcoin publicity in DeFi functions.
Wrapped Bitcoin tokens permit Bitcoin to be utilized on non-Bitcoin blockchains, primarily Ethereum, enhancing interoperability between completely different blockchain networks and enabling Bitcoin holders to take part in DeFi actions with out changing to different cryptocurrencies.
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