Coinbase's cbBTC aims to enhance Bitcoin utility in DeFi on Solana.
Key Takeaways
- Coinbase's cbBTC, backed 1:1 by Bitcoin, expands to Solana to access DeFi platforms.
- Solana's fast transactions and low fees could attract more Bitcoin holders through cbBTC.
Coinbase has confirmed plans to expand its wrapped Bitcoin token cbBTC to the Solana blockchain. This move follows the successful launch of cbBTC on Ethereum and Base networks just days prior.
“Our users love Solana, and so do we. We’re very excited to announce that we will be bringing cbBTC to Solana,” Hassan Ahmed of Coinbase Singapore said in a statement during the Solana Breakpoint conference.
Bitcoin 🤝 Solana
Just in from Breakpoint: @Hassan_NY announced that @coinbase plans to bring cbBTC to Solana! pic.twitter.com/e1UdoUDgbY
— Solana (@solana) September 21, 2024
Coinbase Wrapped BTC (cbBTC) is an ERC-20 token backed 1:1 by Bitcoin held in Coinbase custody. The token aims to increase Bitcoin’s utility and economic freedom by enabling Coinbase customers to seamlessly access decentralized finance (DeFi) applications using their existing Bitcoin holdings.
When it was initially launched, cbBTC was supported on Base and Ethereum, with Coinbase expressing intentions to expand to additional blockchain networks. The planned integration with Solana sees this expansion strategy come to fruition.
The move to bring cbBTC to Solana could potentially boost DeFi activity on the high-performance blockchain. Solana, known for its fast transaction speeds and low fees, may offer an attractive environment for Bitcoin holders looking to engage with DeFi protocols.
For Coinbase users, cbBTC functions as a bridge between Bitcoin and other blockchain ecosystems. When a user sends BTC to a supported blockchain address, it is automatically converted to cbBTC at a 1:1 ratio. Similarly, received cbBTC is converted back to BTC in users’ Coinbase accounts.
The expansion of cbBTC to Solana could open up new opportunities for Bitcoin holders to participate in Solana’s growing DeFi ecosystem. However, Coinbase has not yet provided a specific timeline for the Solana integration or details on which Solana-based DeFi protocols might support cbBTC upon launch.