Ethereum

Bitcoin

DeFi

Base

cbBTC

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/coinbase-launches-new-tokenization-product-cbbtc-on-base-layer-2-and-ethereum/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Coinbase Launches New Tokenization Product cbBTC on Base Layer 2 and Ethereum</a><br></p>
<p style="text-align: justify"><a href="https://en.coin-turk.com/ftx-exchange-resurfaces-with-an-outstanding-debt-of-8-85-billion-comprehensive-report/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Coinbase</a> announced the launch of its new tokenization product, cbBTC, on Thursday. This development highlights the significant role of the largest U.S. <a href="https://en.coin-turk.com/bitcoin-and-ethereums-sharpe-ratio-is-rising-a-sign-of-recovery-in-the-crypto-market/" data-wpel-link="internal" rel="noopener noreferrer nofollow">cryptocurrency</a> exchange in facilitating the tokenization of Bitcoin (BTC) across different blockchains. cbBTC will be supported by the 1:1 backing of Bitcoin held under Coinbase’s custody.</p>
<h2 id="understanding-cbbtc-and-its-parity">Understanding cbBTC and Its Parity</h2>
<p style="text-align: justify">When users send BTC via Coinbase to Base or Ethereum addresses, the BTC will automatically convert to cbBTC. According to data from blockchain analytics firm Arkham, Coinbase’s on-chain assets include over 843,783 Bitcoins, valued at approximately $48.7 billion at current prices. The number of cbBTC tokens will be limited by the amount of Bitcoin owned by Coinbase, representing more than 4% of the total BTC supply.</p>
<h2 id="defi-applications-and-cbbtc">DeFi Applications and cbBTC</h2>
<p style="text-align: justify">Will Robinson, Coinbase’s Vice President of Engineering, stated that cbBTC takes a step closer to the vision of bringing “1 billion people on-chain.” He emphasized that this new product will facilitate Bitcoin holders’ access to DeFi, contributing to the construction of a more inclusive financial system. Various DeFi protocols, such as Aerodrome and Curve, will support cbBTC on its launch day.</p>
<p style="text-align: justify">The launch of cbBTC came shortly after BitGo announced its involvement in new custody operations for Justin Sun’s wBTC. This change raised concerns within <a href="https://en.coin-turk.com/comparison-of-2016-and-2020-bitcoin-prices-and-the-future-of-cryptocurrencies/" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto</a> communities. Coinbase announced cbBTC just four days after BitGo’s announcement.</p>
<p style="text-align: justify">The Aave Chan Initiative has proposed governance to enable the use of cbBTC on Aave v3. Marc Zeller, founder of the Aave Chan Initiative, expressed confidence that cbBTC will find a natural market fit in both Base and Mainnet Aave pools.</p>
<p style="text-align: justify">Despite nearly doubling last year, Coinbase’s stock has seen an 18% decline in the last month, currently trading at $157.22. This reflects the volatility of market conditions despite Coinbase’s expanding product lineup.</p>
<p>The post <a href="https://en.coin-turk.com/coinbase-launches-new-tokenization-product-cbbtc-on-base-layer-2-and-ethereum/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Coinbase Launches New Tokenization Product cbBTC on Base Layer 2 and Ethereum</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.</p>

Coinbase Launches New Tokenization Product cbBTC on Base Layer 2 and Ethereum

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