Coinbase, a leading US-based crypto exchange platform, has unveiled Coinbase Wrapped Bitcoin (cbBTC), an Ethereum-based token backed by Bitcoin (BTC).
According to a recent announcement on X, Coinbase confirms that cbBTC is now live onchain, allowing BTC holders to access decentralized finance (DeFi) applications on both the Base and Ethereum blockchains.
Users can utilize cbBTC on various prominent DeFi networks such as Aave (AAVE), Curve Finance (CRV), Compound Finance (COMP), Moonwell (WELL), and Maple Finance (MPL).
In a detailed blog post, Coinbase explains how holders of BTC can leverage the wrapped version of the cryptocurrency to enhance their DeFi experience.
“cbBTC enables customers to utilize their existing Bitcoin in new ways onchain, removing friction points. It seamlessly integrates with DeFi applications, allowing users to explore innovative DeFi possibilities like providing Bitcoin liquidity or using it as collateral for borrowing other crypto assets…
When transferring BTC from Coinbase to an address on Base or Ethereum, it will be automatically converted 1:1 to cbBTC. Conversely, receiving cbBTC in Coinbase accounts will convert it back to BTC at a 1:1 ratio.”
As of writing, Bitcoin is trading at $57,688 with a 2% gain over the past 24 hours.
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