Aave

Bitcoin

Impact

Base

cbBTC

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/coinbase-initiates-bitcoin-tokenization-on-blockchains" data-wpel-link="internal" rel="noopener noreferrer nofollow">Coinbase Initiates Bitcoin Tokenization on Blockchains</a><br></p>
<p style="text-align: justify">Coinbase, a leading cryptocurrency exchange in the U.S., has introduced its latest product, cbBTC, enhancing the tokenization of <a href="https://en.bitcoinhaber.net/bitcoins-price-dynamics-analyzing-market-indicators-and-whale-activity" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> across multiple blockchains. This <a href="https://newslinker.co" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">innovation</a> emphasizes Coinbase’s commitment to integrating Bitcoin with decentralized finance (DeFi) applications. The cbBTC tokens are backed by a 1:1 Bitcoin reserve, securely held by Coinbase.</p>
<h2 id="what-is-cbbtc-and-how-does-it-work">What is cbBTC and How Does It Work?</h2>
<p style="text-align: justify">CbBTC tokens are created automatically when Bitcoin is transferred to Base or Ethereum addresses via Coinbase. According to Arkham, a blockchain analytics firm, Coinbase’s digital holdings include more than 843,783 Bitcoins, valued at roughly $48.7 billion. The issuance of cbBTC will be capped by Coinbase’s Bitcoin reserves, accounting for over 4% of the overall Bitcoin supply.</p>
<h2 id="how-will-cbbtc-impact-defi">How Will cbBTC Impact DeFi?</h2>
<p style="text-align: justify">Will Robinson, Coinbase’s Vice President of Engineering, conveyed that cbBTC is a step toward bringing a billion people onto blockchain platforms. The product aims to provide Bitcoin holders with greater access to DeFi, supporting an inclusive <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">financial</a> ecosystem. DeFi protocols such as Aerodrome and Curve will endorse cbBTC upon its release, marking a significant step in the integration of Bitcoin with decentralized finance.</p>
<h2 id="key-insights-from-the-launch">Key Insights from the Launch</h2>
<p style="text-align: justify">– Coinbase boasts over 843,783 Bitcoins, backing the cbBTC initiative.<br>– CbBTC aims to improve Bitcoin’s accessibility in DeFi.<br>– The product launch coincides with BitGo’s new custody operations, raising community interest.<br>– The Aave Chan Initiative is exploring cbBTC’s potential integration on Aave v3.<br>– Coinbase shares have experienced market volatility, despite product expansion.</p>
<p style="text-align: justify">Coinbase’s announcement closely followed BitGo’s declaration regarding its role in Justin Sun’s wBTC custody operations, stirring discussions within the cryptocurrency community. The Aave Chan Initiative has proposed integrating cbBTC into Aave v3 pools, with founder Marc Zeller optimistic about its market potential. Despite cbBTC’s promising outlook, Coinbase shares have faced recent declines, reflecting broader market fluctuations. Currently, Coinbase stock is priced at $157.22, indicating the inherent volatility in the market despite the company’s product advancements.</p>
<h5><span style="font-weight:bold;font-size:16px">Continue Reading: </span> <a href="https://en.bitcoinhaber.net/coinbase-initiates-bitcoin-tokenization-on-blockchains" data-wpel-link="internal" rel="noopener noreferrer nofollow">Coinbase Initiates Bitcoin Tokenization on Blockchains</a></h5>

Coinbase Initiates Bitcoin Tokenization on Blockchains

Table of Contents

BH NEWS

Other articles published on Sep 12, 2024

The Tie Launches Polkadot Ecosystem Dashboard on The Tie Terminal (12 Sep)

Injective Launches World’s ‘First Ever’ Tokenized Index for BlackRock's BUIDL Fund

Fast Payments Improve Financial Accessibility

Fetch.ai Price Rally Signals Strong Market Uptake Amid AI Focus

Musk Moon Memecoin Will Surge 18,000% Before Exchange Listings, While Shiba Inu and BONK Lag

FLOKI Completes $CAT Airdrop, But an Error Leaves Some Users Tokenless

Join our free newsletter for daily crypto updates!