Coinbase Unveils cbBTC to Expand Bitcoin Utility in DeFi Across Ethereum and Base

• cbBTC allows Bitcoin holders to engage with DeFi apps on Ethereum and Base, offering new financial opportunities.
• Bitcoin sent to Base or Ethereum converts to cbBTC, providing seamless access to decentralized finance without extra steps.
• Coinbase plans to expand cbBTC across more chains, building a more interconnected and flexible financial ecosystem.

Coinbase has launched cbBTC, an ERC-20 token backed 1:1 by Bitcoin (BTC) held in custody by the exchange. This new initiative allows Bitcoin holders to access decentralized finance (DeFi) apps on Ethereum and Base networks. 

Millions of BTC holders can now participate in the DeFi space without having to convert their Bitcoin into other assets. Coinbase plans to expand cbBTC support to more chains in the future, creating more flexibility for users.

cbBTC: Expanding Bitcoin’s Utility in DeFi

cbBTC opens up new possibilities for Bitcoin holders by enabling them to participate in the DeFi ecosystem. This token allows users to use their Bitcoin on Base and Ethereum networks, introducing liquidity and collateral options. 

With cbBTC, users can provide liquidity to DeFi protocols or borrow other crypto assets by using their Bitcoin as collateral. The move is part of Coinbase’s efforts to integrate Bitcoin into financial applications, enhancing its utility beyond simple storage.

Notably, cbBTC does not require separate order books or trading pairs. Bitcoin sent from Coinbase to Ethereum or Base will automatically convert to cbBTC, while cbBTC received in Coinbase accounts will be converted back to BTC. This seamless integration offers a streamlined process for users, reducing friction in transactions.

Coinbase’s Trusted Custody and Secure Integration

Coinbase, with its over 10-year history of securely storing billions in Bitcoin for institutional and retail customers, underpins cbBTC with a strong reputation in asset custody. cbBTC is fully backed by Bitcoin, ensuring trust and transparency. Users can send their BTC to Base or Ethereum networks, knowing their assets are securely converted and held by Coinbase.

This integration links off-chain Bitcoin liquidity to fast, low-cost networks like Base and Ethereum. By bridging these chains, Coinbase is laying the groundwork for a more interconnected and efficient financial ecosystem, leveraging the power of wrapped assets.

cbBTC: Global Availability and Expanding Chain Support

At launch, Coinbase offers cbBTC send and receive services in the U.S., UK, Europe, Singapore, Australia, and Brazil. However, more regions and chains are expected to join soon. cbBTC will also be accessible on decentralized exchanges (DEXs) via Coinbase Wallet and could be listed on third-party exchanges that support it.