Here’s Why Coinbase Plans to Delist wBTC in December

Coinbase has announced plans to end support for wrapped Bitcoin (wBTC) across its platforms, including Coinbase.com, Coinbase Exchange, and Coinbase Prime, starting December 19, 2024.

We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on December 19, 2024, on or around 12pm ET.

— Coinbase Assets 🛡️ (@CoinbaseAssets) November 19, 2024

While the exchange did not specify the reasons behind the decision, it cited findings from its “most recent review,” implying that wBTC no longer aligns with its listing standards. wBTC trading has already shifted to limit-only mode, enabling users to place and cancel limit orders. However, users will still be able to access their wBTC funds and withdraw them even after the token is delisted. 

Coinbase Introduces Wrapped BTC (cbBTC)

The move follows Coinbase’s introduction of its wrapped Bitcoin token, Coinbase Wrapped BTC (cbBTC), in September. cbBTC is an ERC-20 token backed 1:1 by Bitcoin (BTC) held in Coinbase custody. It is designed to offer users a more integrated and reliable option for interacting with decentralized applications (dApps). 

As of November 19, cbBTC has surpassed a $1.3 billion market capitalization, according to Dune Analytics, with a circulating supply of 15,070 tokens. Most of the supply is distributed across Base (82%), Ethereum (16%), and Solana.

The token was introduced as part of Coinbase’s ongoing efforts to expand Bitcoin’s usability in decentralized finance (DeFi). cbBTC directly competes with BitGo’s wBTC, which is currently the most popular wrapped BTC token in the decentralized finance (DeFi) space.

TRON Founder Gains Influence Over wBTC Protocol

wBTC was launched in January 2019 through a collaboration between BitGo, Kyber Network, and Ren. It allows Bitcoin holders to interact with Ethereum-based DeFi protocols, establishing itself as a vital bridge between Bitcoin and decentralized finance.

Recently, TRON founder Justin Sun has started gaining greater influence over the wBTC protocol. BitGo, wBTC’s primary custodian, entered a joint venture with Hong Kong-based BiTGlobal, a company tied to Sun, raising questions about the token’s future governance. 

BitGo, which has historically overseen the custody of Bitcoin-backed wBTC, announced in August that it would transfer custody responsibilities to multiple entities to enhance geographical resilience. This included BiTGlobal, sparking concerns within the crypto community.

Critics have raised questions about Sun’s involvement due to his controversial reputation, but the partnership could signal significant changes for wBTC’s governance and future direction. Despite these challenges, wBTC remains a key asset in the crypto ecosystem, with a market capitalization of over $13.6 billion, closely mirroring BTC’s price movements.