Coinbase Debuts Wrapped Bitcoin on Ethereum and Base

Publicly traded crypto exchange Coinbase has launched a wrapped Bitcoin product (cbBTC), an ERC20 token backed 1:1 by the company’s Bitcoin (BTC) holdings.

The launch confirms Coinbase’s previously disclosed plan to introduce a new wrapped Bitcoin.

Coinbase Unveils Wrapped Bitcoin

In a blog post, the exchange said that cbBTC will be rolled out on Base and Ethereum, with plans to support more chains.

According to the firm, this product aims to increase Bitcoin’s utility and economic freedom by enabling Coinbase customers to seamlessly access DeFi apps within the Ethereum ecosystem using their existing Bitcoin holdings.

“As the oldest and most widely held crypto asset, Bitcoin plays an important role in onboarding users to crypto. Starting today, millions of Coinbase customers can seamlessly and securely access financial apps within the Ethereum ecosystem using the Bitcoin they already hold. Bringing assets across more chains, wrapped assets like cbBTC help build a more efficient, interconnected and expansive financial ecosystem,” the company said.

cbBTC ensures secure liquidity by being fully backed by Bitcoin, which is held in Coinbase custody and has a track record of over ten years. Popular DeFi protocols supporting this product at launch include Aerodrome, Curve, Aave, Morpho, and Compound.

How Coinbase Wrapped BTC Works

Coinbase Wrapped BTC enables users to send their bitcoin from Coinbase to their on-chain addresses on Ethereum or Base, with the funds automatically converted 1:1 to cbBTC. Conversely, when users send on-chain cbBTC to their Coinbase accounts, it is converted back 1:1 to BTC.

Notably, cbBTC will not have a separate order book or trading pair on Coinbase. However, it will be available to trade on DEXs using Coinbase Wallet and may be listed on other third-party exchanges that choose to support it.

The exchange said the cbBTC send & receive will be available on Coinbase in the US (excluding New York State), UK, EEA states, Singapore, Australia, and Brazil. It will also be accessible globally on Base and Ethereum.