Cryptocurrency exchange Coinbase announced Thursday that its Bitcoin product, cbBTC, has launched on Solana. debut In September, we plan to expand our use outside of the Ethereum ecosystem.
It represents the first token issued by San Francisco-based exchange Solana and Coinbase. said cbBTC will take the form of so-called SPL tokens. According to Solana documentationSPL tokens can be used to represent both fungible and non-fungible assets.
Coinbase’s cbBTC is expected to be utilized in decentralized finance (DeFi), whether traded on decentralized exchanges or used as collateral in lending protocols. Supported 1:1 with Bitcoin, this token allows cryptocurrency users to tap Bitcoin on other networks.
As Solana’s DeFI ecosystem competes for cryptocurrency users, Coinbase’s product is solidifying the presence of one of the industry’s most popular exchanges among its Ethereum rivals. Considering the rapid growth of the product on Ethereum and Base, Coinbase’s layer 2 scaling solution, a packaged product could find similar success as a means of spending Bitcoin on Solana.
Since its introduction earlier this year, cbBTC has been challenging Bitcoin-based incumbents such as WBTC launched by BitGo. Even though WBTC made profits of $11 billion. market capitalization Since 2019, the total value of cbBTC has exceeded $1 billion for 9 weeks.
The move to Solana has been welcomed by several decentralized exchanges operating on Solana, a fast layer-1 network. rival Ethereum in terms of DeFi activity this year. Among my passion projects: orca and tendencyTwitter (aka X) issued a congratulatory statement.
“Drift welcomes Coinbase’s wrapping of Bitcoin on Solana.” Drift said“You can use Coinbase’s cbBTC as collateral to trade on Drift,” the user added.
Coinbase’s move into the Bitcoin space coincides with some of the controversy surrounding its BitGo product. BitGo’s association with Justin Sun comes after the company announced a partnership with Hong Kong-based BiT Global in August to diversify its custody operations. raised an eyebrow The Tron co-founder has been closely examining Coinbase’s products.
Until recently, soBTC was a popular form of wrapped Bitcoin on Solana. A token believed to have been issued by collapsed cryptocurrency exchange FTX or its sister company Alameda Research. Depegged side by side breakdown Former FTX CEO Sam Bankman-Fried’s Empire in November
Coinbase initially said Bitcoin-based products would launch on Solana in late September. announce Movement at Solana Breakpoint, Singapore. Speaking at the annual Solana conference, Coinbase Singapore Country Manager Hassan Ahmed explained that this move was a no-brainer.
“We recently launched cbBTC on Base, but users love Solana and so do we, so we’re excited to announce that we’re bringing native cbBTC to Solana as well.”
Edited by Sebastian Sinclair
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