Coinbase Launches cbBTC on Ethereum and Base on Thursday, Driving $18 Billion Bitcoin Pool

Sep 12, 2024, 11:00 AM

Coinbase has launched a new tokenized version of Bitcoin, cbBTC, on both Ethereum and Base on Thursday. This ERC20 token is backed 1:1 by Bitcoin and aims to enhance Bitcoin's utility in decentralized finance (DeFi) applications. The launch comes amid controversy surrounding BitGo’s Wrapped Bitcoin (WBTC) and its custodial changes. Aave is considering integrating cbBTC into its V3 protocol, sparking a debate within the community about decentralization. Aave has become the preferred protocol for supporting Tier-1 asset launches. Coinbase holds over 4% of Bitcoin's total supply of 21 million tokens, and this move drives an $18 billion Bitcoin pool towards DeFi.