Top US crypto exchange platform Coinbase announces the launch of Coinbase Wrapped Bitcoin (cbBTC), a Bitcoin (BTC)-backed Ethereum (ETH)-based token.
In a new thread on the social media platform X, Coinbase say that cbBTC is now onchain and ready, meaning holders of the top crypto assets by market cap can now access decentralized finance (DeFi) apps on the Base and Ethereum blockchains.
According to Coinbase, cbBTC will be available on many prominent DeFi networks, including Aave (AAVE), Curve FInance (CRV), Compound Finance (COMP), Moonwell (WELL), and Maple Finance (MPL).
In a new blog post, Coinbase explains how BTC holders can use the Coinbase-wrapped version of the crypto king to streamline their DeFi experience.
“cbBTC removes a key point of friction by allowing customers to use the Bitcoin they already own on-chain in new ways. cbBTC is built to be seamlessly compatible with DeFi applications, so users can now leverage new DeFi use cases, such as providing their Bitcoin as liquidity to DeFi protocols, or using it as collateral to borrow other crypto assets. .
When Coinbase users send their BTC from Coinbase to an address on Base or Ethereum, that BTC is automatically converted 1:1 to cbBTC. When users receive cbBTC into their Coinbase accounts, it will be converted 1:1 from cbBTC to BTC.”
Bitcoin is trading at $57,688 at the time of writing, a gain of 2% over the past 24 hours.
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