|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Coinbase Rolls Out cbBTC to Bolster Its Burgeoning DeFi Business
Sep 12, 2024 at 07:02 pm
The token is a one-to-one version of Bitcoin, backed by coins held in custody by Coinbase.
Coinbase has rolled out a new product called cbBTC, a one-to-one version of Bitcoin that can be held and traded on programmable blockchains like Ethereum.
This move is designed to bolster Coinbase's burgeoning DeFi business, as it allows its customers to leverage their $18 billion of Bitcoin holdings across Ethereum and Base's combined $45 billion DeFi ecosystems.
Currently, adoption of cbBTC could provide a much-needed boost to Ethereum's ailing DeFi ecosystem.
Despite Bitcoin hitting an all-time high in March, analysis shows that deposits to Ethereum DeFi protocols have not reached their 2021 levels.
Bitcoin is the most traded crypto asset on Coinbase, accounting for almost 37% of trading volume, according to data compiled by CoinMarketCap.
Coinbase customers store approximately one million coins on the exchange, worth some $58 billion, says an analysis by blockchain data platform Arkham Intelligence.
While around $40 billion of this amount is Bitcoin the exchange holds on behalf of exchange-traded fund issuers like BlackRock, some $18 billion is held by retail and institutional customers.
There’s plenty of ways for Coinbase’s customers to use cbBTC in DeFi. Integrations with popular decentralised exchange Curve Finance and top lending protocol Aave are already live.
Here's the full list of cbBTC's DeFi protocol integrations on Ethereum and Base:
Aerodrome, Curve, Aave, Morpho, Compound, Moonwell, Sky (f.k.a. MakerDAO), Spark, Veda, Mellow, DeFinitive, DeBridge and Maple.
This is important because these protocols let cbBTC holders earn yield on their tokens and incentivise its use.
Coinbase's move comes amid a shakeup in the market for DeFi-compatible versions of Bitcoin.
In recent weeks, several protocols and their users have started looking for alternatives to Wrapped Bitcoin, the biggest DeFi-compatible version of Bitcoin.
The token's issuer, BitGo, recently inked a new partnership involving Tron founder Justin Sun. Critics say Sun's history of turbulent crypto acquisitions could cause issues, and warn the move jeopardises the $9 billion Bitcoin held by BitGo that backs the token.
Coinbase’s timely launch of cbBTC could be an attempt to lure users unhappy with BitGo.
Other firms have the same idea, though.
Bitcoin layer 2 Stacks is in the process of launching its own DeFi-compatible version of Bitcoin called sBTC, set to go live in mid-September.
Lombard Staked BTC, a version of Bitcoin that earns yield from Bitcoin staking protocol Babylon, has attracted almost $300 million of deposits since its August 21 launch.
But cbBTC isn’t the first time Coinbase has a similar product.
In 2022, Coinbase launched cbETH, a DeFi-compatible version of Ethereum's Ether token that earns staking yield. It's grown to become the fifth-largest staked Ether token with almost $500 million in circulation.
The question now is whether cbBTC will be able to achieve similar success.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- MemeBet Token — World's First Meme Coin Casino That Could Explode After Launch
- Sep 26, 2024 at 04:25 am
- The goal of meme cryptos is to deliver massive gains to their investors in record time. However, many lack the utilities or strategic tokenomics to become sustainable.
-
- Worldcoin (WLD) Price Chart Hints a Bullish Trend is Brewing; Can Bulls Reclaim the $6 Mark?
- Sep 26, 2024 at 04:25 am
- The Worldcoin price chart has reached a fascinating point where it resembles a previous pattern but the technicals suggest a huge bull run is on the horizon.
-
- Bitcoin Price Prediction: Will BTC Reach $100K or Even $1M by 2025?
- Sep 26, 2024 at 04:25 am
- Bitcoin experienced a significant rally in early 2024, following the launch of the first spot bitcoin exchange-traded funds in January.
-
- SEC Chair Gary Gensler Defends Crypto Custody Regulation Firmly
- Sep 26, 2024 at 04:25 am
- SEC Chair Gary Gensler has assured Congress during a congressional testimony that the Staff Accounting Bulletin (SAB) 121 will continue to be operational.
-
- MemeFi ($MEMEFI) Makes Debut on Bitget Exchange, Offers Pre-Market Trading Ahead of TGE
- Sep 26, 2024 at 04:25 am
- MemeFi ($MEMEFI) has officially made its debut on the Bitget exchange, offering pre-market trading ahead of the Token Generation Event (TGE).
-
- Worldcoin's WLD Token Surges 54% in Three Days, Retesting $2 Resistance
- Sep 26, 2024 at 04:25 am
- Worldcoin’s WLD token surged for a third consecutive day, climbing 54% from its August low, following the project’s expansion into three additional countries.
-
- Bitcoin ETFs Record Fresh Inflows, SwissCheese’s Price Rallies, & BlockDAG Launches Testnet—30,000x ROI on the Horizon?
- Sep 26, 2024 at 04:25 am
- The spotlight is once again on Bitcoin ETFs, which have just welcomed a hefty $263 million in new inflows, marking a robust revival of interest from institutional traders.
-
- The Sandbox (SAND) Poised for a Price Decline as Millions of Tokens Are Dumped onto Centralized Exchanges
- Sep 26, 2024 at 04:25 am
- After experiencing a notable rally over the past few days, The Sandbox [SAND] looked poised for a price decline as millions of tokens are being dumped onto centralized exchanges.
-
- Hedera (HBAR) Price Prediction: HBAR Continues Positive Trend, Up 17% in a Week
- Sep 26, 2024 at 04:25 am
- Over the past 24 hours, Hedera's HBAR/USD price rose 3.04% to $0.06. This continues its positive trend over the past week where it has experienced a 17.0% gain