In September, Coinbase unveiled cbBTC, a wrapped version of Bitcoin that enabled users to utilize their Bitcoin holdings in decentralized finance (DeFi) applications on Ethereum and Base without selling or converting to other cryptocurrencies. Some of the most popular DeFi platforms that will support cbBTC from the start include well-known names like Uniswap, Aave, Compound, and Curve.
One of the key benefits of cbBTC is its 1:1 backing by Bitcoin held in custody by Coinbase. By wrapping Bitcoin and bridging it to more blockchain networks, Coinbase aims to create a more interconnected financial ecosystem that can accelerate the adoption of Bitcoin across various DeFi platforms.
Bitcoin users can now provide liquidity, participate in lending, or even borrow against their Bitcoin through these platforms. In addition to DeFi, cbBTC is expected to support cross-chain swaps, oracles, and real-world asset protocols, further broadening its potential use cases.
For Coinbase users, converting Bitcoin to cbBTC is straightforward. When users send their Bitcoin from Coinbase to a Base or Ethereum address, the system automatically converts it to cbBTC on a 1:1 basis. Similarly, when users receive cbBTC in their Coinbase account, it is instantly converted back to Bitcoin.
At launch, cbBTC became available to users in regions such as the U.S., UK, EEA states, Singapore, Australia, and Brazil, with global accessibility on Base and Ethereum networks.
Well, yesterday, in a post on X, Coinbase announced the launch of cbBTC on Solana. It has already transferred approximately $10 million worth of cbBTC to the Solana network, according to data from Solscan. Coinbase’s wrapped Bitcoin has accumulated over $1 billion in market capitalization, though it still trails behind the industry-standard BitGo’s WBTC, which holds $11 billion in market cap and spans multiple networks.
Trump’s victory in the 2024 U.S. presidential election has brought hopes that under his administration, the U.S. SEC will be a lot more crypto-friendly and therefore increased in the minds of many in the crypto community the odds of approval for a US-listed spot Solana ETF.
Yesterday’s announcement increased the excitement around Solana, seemingly helping the SOL price break above $200 for the first time since April 2. At the time of writing (8:50 a.m. UTC on November 8), SOL is trading at around $202.34, up 7.5% in the past 24-hour period.
