Coinbase launches cbBTC its wrapped Bitcoin for Ethereum
If you want to move crypto between blockchains it's difficult - which is why wrapped crypto is now becoming a new payment battleground.
Key takeaways
- Coinbase, one of the largest and most respected cryptocurrency exchange platforms in the world, has recently introduced its version of Wrapped Bitcoin, called cbBTC.
- The Wrapped Bitcoin (WBTC) are ERC-20 tokens on Ethereum that represent Bitcoin so they can be used in decentralized applications (dApp) DeFi.
- WBTC was one of the first Wrapped Bitcoin to gain traction, representing about 70% of the market.
Cite or link to this article
Griffin, M. (2024) 'Coinbase launches cbBTC its wrapped Bitcoin for Ethereum', 311 Institute, 18 October. Available at: https://www.311institute.com/coinbase-cbbtc-crypto-its-wrapped-bitcoin-for-ethereum/ (Accessed: 1 October 2026).
Coinbase, one of the largest and most respected cryptocurrency exchange platforms in the world, has recently introduced its version of Wrapped Bitcoin, called cbBTC. This new tool has been developed to bring the potential of Bitcoin into the growing ecosystem of decentralized finance (DeFi) on Ethereum and Base, the Layer 2 blockchain developed by Coinbase.
With this move, Coinbase not only enters the Wrapped Bitcoin market, but launches a direct challenge to WBTC, the sector leader, issued by BitGo. The Wrapped Bitcoin (WBTC) are ERC-20 tokens on Ethereum that represent Bitcoin so they can be used in decentralized applications (dApp) DeFi. Since Bitcoin cannot directly interact with Ethereum-compatible blockchains, such as Base, wrapped Bitcoin act as a bridge solution, allowing users to “wrap” their BTC on other networks.
The introduction of cbBTC by Coinbase promises to further expand opportunities for users to leverage their Bitcoin in DeFi applications, such as trading, lending, and using collateral in decentralized protocols. This is a significant step towards promoting a broader and more dynamic Bitcoin economy within the DeFi ecosystem.
The Future of Banking and Payments, by keynote Matthew Griffin
With the arrival of cbBTC, Coinbase offers a solution for users who wish to use their Bitcoin in the DeFi world, without having to go through complex manual processes. The new version signed by Coinbase is designed to be seamlessly integrated with the Ethereum and Base networks, allowing users to trade and use Bitcoin on these platforms as if they were native to the network.
One of the most innovative aspects of cbBTC is its automatic conversion. Users who own Bitcoin can now easily transfer their BTC to Coinbase and convert them into cbBTC for use on Ethereum or Base.
When a user transfers Bitcoin to or from these networks, Coinbase performs the automatic conversion to cbBTC or BTC, depending on the type of network. This frictionless approach greatly simplifies the user experience and reduces the risk of errors or technical complications.
One of the main advantages of cbBTC is its wide integration in DeFi services. Users will be able to use cbBTC as collateral for loans, participate in yield farming protocols, perform decentralized trading transactions on platforms like Uniswap, and much more.
This makes cbBTC a versatile and valuable asset within the DeFi ecosystem, especially for those who wish to put their Bitcoin to work without selling it or transferring it to centralized wallets.
The fact that it is integrated on Base represents another important turning point. Base is the Layer 2 blockchain built by Coinbase to improve scalability and reduce transaction costs. With cbBTC also available on this network, users can benefit from faster transactions and lower costs compared to Ethereum, which encourages a wider and more widespread use of Bitcoin in the DeFi world.
The launch comes at a time when Coinbase is looking to expand its influence in the DeFi ecosystem, directly challenging the market leader of Wrapped Bitcoin, BitGo’s WBTC.
WBTC was one of the first Wrapped Bitcoin to gain traction, representing about 70% of the market. However, Coinbase, with its enormous user base and reputation, could quickly carve out a significant slice of this market.
The objective of Coinbase with cbBTC is to create a significant Bitcoin economy on Base and other compatible networks, facilitating the large-scale adoption of Bitcoin in DeFi. The integration with the Base network represents a fundamental step to achieve this objective, as it allows users to access a more efficient and less expensive platform compared to Ethereum.
With the launch of cbBTC, Coinbase positions itself as a key player in promoting the use of Bitcoin within DeFi. The combination of automatic conversion, integration with major DeFi networks, and support from the Base network creates a unique opportunity for users to leverage their Bitcoin in new and innovative ways.
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Why does this matter?
If you want to move crypto between blockchains it's difficult - which is why wrapped crypto is now becoming a new payment battleground.
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
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Source: first published by the 311 Institute on 18 October 2024. Cite as: Griffin, M. (2024). Coinbase launches cbBTC its wrapped Bitcoin for Ethereum. 311 Institute. https://www.311institute.com/coinbase-cbbtc-crypto-its-wrapped-bitcoin-for-ethereum/
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