Coinbase Launches cbBTC, Bridging Bitcoin To Ethereum And Base Networks
Portfolio Pulse from Murtuza Merchant
Coinbase has launched Coinbase Wrapped BTC (cbBTC), an ERC20 token backed 1:1 by Bitcoin, to enhance Bitcoin's utility in the DeFi ecosystem. The token initially supports the Base and Ethereum networks, allowing users to access DeFi applications with Bitcoin holdings. This move could increase adoption and liquidity in DeFi, despite concerns about wrapped Bitcoin products.
September 12, 2024 | 11:16 am
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Coinbase's launch of cbBTC, a wrapped Bitcoin token, aims to increase Bitcoin's utility in DeFi, potentially boosting Coinbase's user engagement and liquidity. However, concerns about wrapped Bitcoin products' centralization remain.
The launch of cbBTC by Coinbase is a strategic move to integrate Bitcoin into the DeFi ecosystem, which could increase user engagement and liquidity on Coinbase's platform. This is likely to have a positive short-term impact on Coinbase's stock as it expands its product offerings and taps into the growing DeFi market. However, the concerns about the centralization of wrapped Bitcoin products could pose risks.
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