Coinbase has announced the release of cbBTC – an ERC-20 tokenized Bitcoin that will be available on Base as well as other Ethereum ecologies.
Coinbase is likely to hold the new Bitcoin token in central custody.
Coinbase teased cbBTC for the first time on August 14th amid a flurry of controversy around BitGo. The official announcement was made today.
Dune says that BitGo’s Wrapped Bitcoin (WBTC) is now facing a significant threat. WBTC currently holds 96.6% share of the Ethereum ecosystem.
Coinbase tweeted that cbBTC would be available for several protocols, including Aerodrome (curve), Aave (Aave), Morpho, Compound Moonwell Spark, Compound Compound and others.
“Coinbase is helping users do more with their bitcoin,” Will Robinson, vice president of Coinbase’s engineering department, told Blockworks. He said that “cbBTC is a big step forward for DeFi, giving bitcoin a much more active role.”
BitGo announces a new. “strategic partnership” Sky (formerly Maker) removed WBTC from DAI’s stablecoin after concerns were raised.
BitGo refused to make a statement on cbBTC’s launch.
Spark Protocol, following Coinbase’s announcement, immediately proposed to join cbBTC. “a strategic need to have a replacement BTC on SparkLend as collateral.”
Aave DAO floated a governance proposal on Tuesday to add the collaterals to Base and Ethereum Mainnet. It also offered incentives of about $150,000 to help boost growth.
Early comments made to the proposal highlighted the concerns raised about cbBTC’s regulatory and security risks.
“If Coinbase were ever to have their accounts frozen for investigation or face further regulatory action, it would put all Aave users at severe risk,” “DeFiWhale” said user @DeFiWhale.
One user @midapple cited the proposal in this way “premature” The public is not aware of the mechanisms for cbBTC’s minting and redemption.
Market share is over 1% for BTCB and BTC.b.
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