Coinbase Set to Launch Wrapped Bitcoin Token on Solana, Unlocking DeFi Potential
Coinbase is set to introduce its wrapped Bitcoin token, cbBTC, to the Solana blockchain, following its recent successful rollout on Ethereum and Base networks.
During the Solana Breakpoint conference, Hassan Ahmed from Coinbase Singapore expressed enthusiasm about the move, emphasizing the strong community support for Solana among users.
cbBTC is an ERC-20 token that is backed 1:1 by Bitcoin stored in Coinbase’s custody. The token aims to enhance Bitcoin’s functionality and provide economic freedom by allowing users to easily access decentralized finance (DeFi) applications with their existing Bitcoin holdings.
Initially launched on Base and Ethereum, Coinbase’s plans to expand to Solana mark a significant step in its broader strategy to integrate with multiple blockchain networks.
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This addition could stimulate DeFi activities on Solana, which is renowned for its rapid transaction speeds and low costs, making it an appealing option for Bitcoin holders interested in engaging with DeFi protocols.
For Coinbase users, cbBTC acts as a link between Bitcoin and various blockchain platforms. When users transfer BTC to a supported blockchain address, it is automatically converted to cbBTC at a 1:1 ratio. Conversely, cbBTC received is transformed back into BTC in the users’ Coinbase accounts.
While the expansion to Solana presents exciting possibilities for Bitcoin holders to tap into Solana’s expanding DeFi landscape, Coinbase has yet to announce a timeline for the integration or specify which DeFi protocols will support cbBTC at launch.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
