Bitcoin Backed Token Announced By Coinbase: BTC Holders Can Now Access DeFi Apps on Base
The post Bitcoin Backed Token Announced By Coinbase: BTC Holders Can Now Access DeFi Apps on Base appeared on BitcoinEthereumNews.com.
Bitcoin has surged over 5% since Wednesday, but volatility and uncertainty have clouded the past few weeks. However, a significant announcement from Coinbase is bringing fresh optimism for BTC holders eager to explore DeFi opportunities. As of yesterday, Coinbase launched Coinbase Wrapped BTC (cbBTC), an ERC20 token backed 1:1 by Bitcoin (BTC) held by Coinbase. Initially, cbBTC will be supported on Base and Ethereum, with plans to expand to more chains. This move allows Bitcoin holders to unlock new ways to engage with decentralized finance (DeFi), providing greater flexibility in using their BTC across multiple platforms. Coinbase’s introduction of cbBTC marks another step forward in increasing economic freedom in the crypto space. BTC users now have more opportunities to leverage their assets while staying connected to DeFi’s growing ecosystem. Bitcoin Is Now Available On Base Coinbase is taking a groundbreaking step by linking deep off-chain Bitcoin liquidity to fast, low-cost financial networks on Base and Ethereum. cbBTC announcement by Coinbase | Source: Coinbase on X Through cbBTC, the company enables Bitcoin holders to use their assets across more chains, fostering a more interconnected financial ecosystem. Wrapped assets like cbBTC allow users to utilize Bitcoin in new ways, helping bridge the gap between traditional Bitcoin holding and decentralized finance (DeFi). cbBTC eliminates the friction of moving assets between chains by offering seamless compatibility with DeFi applications. This opens the door to novel use cases such as providing Bitcoin as liquidity to DeFi protocols or as collateral for borrowing other crypto assets. At launch, cbBTC will be available on decentralized exchanges (DEXs) such as Aerodrome, Curve, Matcha, and Uniswap and lending platforms like Aave, Compound, Morpho, Moonwell, and Spark. Additionally, cbBTC can be used in real-world asset (RWA) protocols like Maple. When Coinbase users send Bitcoin from their accounts to an address…
Filed under: News - @ September 14, 2024 2:22 am