Top US-based crypto exchange platform Coinbase is announcing the launch of Coinbase Wrapped Bitcoin (cbBTC), a Bitcoin (BTC)-backed Ethereum (ETH)-based token.
In a new thread on the social media platform X, Coinbase says that cbBTC is now onchain and ready, meaning that holders of the top crypto asset by market cap can now access decentralized finance (DeFi) apps on the Base and Ethereum blockchains.
According to Coinbase, cbBTC will be available on many prominent DeFi networks, including Aave (AAVE), Curve FInance (CRV), Compound Finance (COMP), Moonwell (WELL), and Maple Finance (MPL).
In a new blog post, Coinbase explains how BTC holders can use the Coinbase-wrapped version of the crypto king to streamline their DeFi experience.
“cbBTC removes a key point of friction by allowing customers to use Bitcoin they already hold in new ways onchain. cbBTC is built to be seamlessly compatible with DeFi applications, so users can now tap into novel DeFi use cases like providing their Bitcoin as liquidity to DeFi protocols, or using it as collateral to borrow other crypto assets…
When Coinbase users send their BTC from Coinbase to an address on Base or Ethereum, that BTC will automatically be converted 1:1 to cbBTC. When users receive cbBTC in their Coinbase accounts, it will be converted 1:1 from cbBTC to BTC.”
Bitcoin is trading for $57,688 at time of writing, a 2% gain during the last 24 hours.