Coinbase Launches cbBTC on Ethereum & Base

Coinbase's cbBTC is now live on Ethereum and Base, backed 1:1 by bitcoin held by the exchange.

What's the Scoop?

• DeFi Integration: Users can provide bitcoin as liquidity or as collateral in DeFi protocols, with exchanges like Aerodrome and Curve supporting cbBTC from launch.
• Automatic Conversion: Bitcoin sent to specific Coinbase addresses on Ethereum or Base will automatically convert to cbBTC, with a 1:1 conversion back to BTC when returned to Coinbase.
• Geographical Availability: cbBTC is available in the U.S., U.K., EEA, Singapore, Australia, and Brazil, excluding New York State.

Bankless Take:

Coinbase’s entry into the wrapped bitcoin market with cbBTC will not only challenge BitGo’s dominant yet distrusted WBTC, but also likely drive more users to Base as the opportunities to put BTC to work, earning more yield, on the L2 increase. This move continues the larger trend of exchanges launching branded derivatives, like Binance and Bybit’s Solana liquid staking tokens, BNSOL and bbSOL. While these initiatives may boost DeFi liquidity, they further embed centralized actors in decentralized environments, raising concerns about the balance of power onchain. Overall, though, given Coinbase’s existing network effect and trusted reputation, cbBTC will most likely be a strong success.