Coinbase, one of the top US-based crypto exchanges, is gearing up to introduce a wrapped version of Bitcoin (BTC) on the Ethereum (ETH) layer-2 scaling solution Arbitrum (ARB). The announcement was made on the social media platform X by Coinbase Assets, teasing the upcoming launch of Coinbase Wrapped Bitcoin (cbBTC) on Arbitrum.
Earlier this month, Coinbase unveiled cbBTC, a token designed to provide BTC holders with access to decentralized finance (DeFi) protocols across the Ethereum and Base blockchains. The introduction of cbBTC was aimed at simplifying the DeFi experience for Bitcoin holders, allowing them to participate in various DeFi applications seamlessly. The token was also expected to be compatible with popular DeFi platforms such as Aave, Curve Finance, Compound Finance, Moonwell, and Maple Finance.
In a blog post accompanying the announcement, Coinbase elaborated on how cbBTC would enable users to leverage their existing Bitcoin holdings in innovative ways within the DeFi ecosystem. The token would enable BTC holders to engage in activities like providing liquidity to DeFi protocols or using their Bitcoin as collateral to borrow other crypto assets.
Following the successful launch of cbBTC on Base, Coinbase executive Hasan Ahmen revealed plans to bring the token to Solana, Ethereum’s primary competitor. Expressing excitement about the move, Ahmen stated that the decision was influenced by the growing popularity of Solana among users and the exchange’s commitment to supporting the platform.
At the time of writing, Bitcoin and cbBTC were trading at $66,011, marking a 1% gain in the last 24 hours. The introduction of cbBTC on Arbitrum and the upcoming expansion to Solana underscore Coinbase’s efforts to enhance the accessibility and utility of Bitcoin within the DeFi space.
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