Coinbase Wrapped BTC

Coinbase Wrapped BTC (CBBTC)

Coinbase Wrapped BTC (CBBTC) is an innovative token that serves as a bridge between the world of traditional Bitcoin and the dynamic landscape of decentralized finance (DeFi). Each CBBTC token is backed 1:1 by native Bitcoin (BTC) securely held by Coinbase, ensuring that for every CBBTC in circulation, an equivalent amount of BTC is maintained in a robust custody solution, including cold storage.

Key Features of CBBTC

• Transferable and Redeemable: CBBTC is a wrapped asset, making it a transferable token that can be easily redeemed for its underlying asset, Bitcoin.
• Seamless Integration: CBBTC is designed to be fully compatible with various DeFi applications, enabling users to explore new financial possibilities.
• DeFi Utility: Users can leverage their Bitcoin for a variety of DeFi use cases, including providing liquidity to protocols, using it as collateral for borrowing other crypto assets, or even utilizing it for payments.

Enhanced Financial Ecosystem

By allowing users to use their existing Bitcoin holdings in new and innovative ways on-chain, CBBTC significantly reduces friction in the crypto transaction process. Wrapped assets like CBBTC are integral to the maturing cryptocurrency landscape, as they help bring more liquid assets on-chain and facilitate a broader and more expansive financial ecosystem.

With CBBTC, Coinbase customers can easily unwrap their tokens and redeem a corresponding amount of BTC by depositing their CBBTC into their Coinbase accounts, making it a user-friendly option for those looking to maximize their Bitcoin's potential in the DeFi space.