Coinbase to Launch cbBTC on Base with 0 Fees, Challenging WBTC

Aug 14, 2024, 04:20 AM

Coinbase is reportedly preparing to launch cbBTC, a new competitor to Wrapped Bitcoin (WBTC), which will be integrated into Ethereum and its Layer 2 solutions, including Base. This strategic move aims to enhance Coinbase's offerings by allowing Bitcoin holders to engage with decentralized finance (DeFi) applications on Ethereum. The introduction of cbBTC is expected to provide users with low transaction fees and increased access to DeFi services, potentially surpassing WBTC in supply within six months of its launch. Predictions suggest there will be 0 fees on mint/redeem. The development is seen as a significant opportunity for Coinbase, given its large Bitcoin customer base, and it aligns with the company's efforts to expand DeFi access through its wallet. The launch of cbBTC could also impact the landscape of Bitcoin Layer 2 solutions, challenging existing EVM-compatible projects.