Coinbase Launches Wrapped Bitcoin on Solana for DeFi

by | Nov 8, 2024 | Bitcoin News, Latest News | 1 comment

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Coinbase, the largest cryptocurrency exchange in the U.S., has introduced its wrapped Bitcoin token, cbBTC, on the Solana blockchain. This new token strengthens Bitcoin’s role in decentralized finance (DeFi) by offering users broader, more flexible access to Bitcoin through Solana’s network.

Coinbase’s First Token on Solana

On Nov. 7, Coinbase announced on X (formerly Twitter) that cbBTC is its first asset issued on Solana. The company expressed excitement, stating, “This is the first token Coinbase has issued on Solana, and with it, we’re excited to bring easy access to BTC.” Backed 1:1 with Bitcoin, cbBTC allows users to securely transfer value within Solana’s DeFi ecosystem.

Boosting Solana’s DeFi Capabilities

As a Solana Program Library (SPL) token, cbBTC works seamlessly with multiple DeFi protocols on Solana, including Jupiter, Kamino Finance, and Phoenix. Commenting on this launch, Kamino’s team said, “Bitcoin is king, and the vision is for Kamino to be one of the largest cbBTC venues in DeFi.” Initially announced at the Breakpoint conference in September, Coinbase’s launch of cbBTC marks a significant push into Solana’s ecosystem.

Addressing a Key Market Gap

Coinbase’s cbBTC addresses a gap left by soBTC, a previous Bitcoin-backed asset on Solana that lost its peg after FTX’s collapse. cbBTC now joins other wrapped Bitcoin tokens on Solana, including Threshold’s tBTC, Zeus Network’s zBTC, and WBTC via Wormhole.

Since its debut in September, cbBTC has seen strong adoption, reaching a market cap of over $1 billion. Comparatively, BitGo’s Wrapped Bitcoin (WBTC) remains the most popular, with an $11 billion market cap across various networks.

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Solana’s Growing DeFi Sector

In 2024, Solana’s DeFi sector has surged. Total value locked (TVL) rose by 250%, reaching $8.25 billion, according to DefiLlama. By comparison, Ethereum’s DeFi TVL is around $60 billion, following a 72% increase this year. After Coinbase’s cbBTC announcement, Solana’s SOL token rose 3.4%, trading at $200 on Nov. 8, per CoinGecko data.

This launch highlights Coinbase’s commitment to expanding DeFi access. Leveraging Solana’s speed and low fees, cbBTC enhances Bitcoin’s utility in DeFi, strengthening Solana’s position in this rapidly growing space.

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Normally I do not read article on blogs however I would like to say that this writeup very forced me to try and do so Your writing style has been amazed me Thanks quite great post

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