Bitcoin

Litecoin

Ethereum

Bitcoin Cash

Wrapped Bitcoin

Compound Wrapped BTC

Coinbase, one of the largest crypto exchanges globally, has launched a wrapped version of Bitcoin, cbBTC, designed to bridge the gap between Bitcoin and the decentralized finance (DeFi) ecosystem. This new ERC-20 token, backed 1:1 by Bitcoin held in Coinbase’s custody, allows users to seamlessly convert their Bitcoin into cbBTC, making it usable across Ethereum and Coinbase’s Base network.<h3 id="what-is-cbbtc">What Is cbBTC?</h3><a href="https://x.com/coinbase/status/1823529439663403040" rel="noopener noreferrer nofollow">cbBTC</a> (Coinbase Wrapped Bitcoin) offers a simple solution for Bitcoin holders to participate in the DeFi world. It opens doors to lending, borrowing, and liquidity provision without having to sell or convert their Bitcoin into other assets. This means users can now stake, lend, or provide liquidity using Bitcoin on various DeFi protocols like Aave, Compound, and Curve.The Bitcoin-Coinbase conversion process is seamless. When users send Bitcoin from their Coinbase account to an address on Base or Ethereum, the platform automatically converts it to cbBTC at a 1:1 ratio. Likewise, receiving cbBTC will convert it back to regular Bitcoin.<h3 id="impact-on-bitcoin-and-defi-ecosystem">Impact on Bitcoin and DeFi Ecosystem</h3>The launch of cbBTC is significant for Bitcoin’s role in the broader cryptocurrency market. It allows millions of <a href="https://x.com/coinbase" rel="noopener noreferrer nofollow">Coinbase</a> users to interact with DeFi applications using Bitcoin—previously challenging because Bitcoin’s native blockchain doesn’t support smart contracts or DeFi in its traditional form. Now, by linking Bitcoin’s deep liquidity to Ethereum’s flexible financial system, cbBTC could enhance Bitcoin’s utility and adoption in DeFi.Moreover, Coinbase’s robust reputation adds a layer of security and trust to cbBTC, addressing concerns about centralization that have emerged with other wrapped Bitcoin products like WBTC.<h3 id="what-s-next">What’s Next?</h3>Coinbase’s move to integrate Bitcoin into DeFi not only offers more liquidity and accessibility to users but also opens the door for further expansion. The exchange has indicated that it plans to extend cbBTC to other blockchains beyond Ethereum and Base, further broadening the scope of Bitcoin’s integration into decentralized finance.As the DeFi market continues to evolve, cbBTC’s success could set the stage for even more mainstream adoption, while also giving <a href="https://icogemhunters.com/bitcoin-ready-to-explode-market-indicators-suggest-a-massive-rally-soon/" rel="noopener noreferrer nofollow">Bitcoin</a> holders a way to generate yield and participate in the broader financial ecosystem without sacrificing their Bitcoin holdings.This development is seen as a bullish signal for Bitcoin, as it could drive demand and liquidity, while also showcasing Bitcoin’s evolving role in the DeFi space.Disclaimer: This article is intended for informational purposes only and should not be construed as legal, tax, investment, financial, or any other form of advice.Source: <a href="https://icogemhunters.com/bitcoin-in-defi-coinbases-latest-launch-could-change-everything/" rel="noopener noreferrer nofollow">ICOGemHunters</a>

Bitcoin in DeFi? Coinbase's Latest Launch Could Change Everything!

Table of Contents

ICOGemHunters

Other articles published on Sep 12, 2024

Growing Concerns: Will Solana Be Sold From FTX Wallet?

SEC Chair Gensler Under Investigation. Here’s How It Could Benefit Ripple and XRP

2024 SEC Earnings From Crypto Fines

Floki's Valhalla Partners with OG Esports as Official Jersey Sleeve Sponsor

Only Stage 1 Rollups Will Be Highlighted: Buterin

Cathie Wood-Led Ark Invest Turns Downturn Into Opportunity! Bought Millions of Dollars Worth of C...

Join our free newsletter for daily crypto updates!