Coinbase launched cbBTC, a Bitcoin-backed SPL token on Solana, with Coinbase as custodian.
Coinbase has now announced that cbBTC will be the first token on Solana to have Bitcoin backing. Coinbase is the custodian of the newly created SPL token, which has a 1:1 backing from Bitcoin. Users will have an easier time gaining access to Bitcoin directly on the Solana blockchain thanks to this feature.
By bringing the power of Bitcoin onto Solana’s high-speed network, cbBTC by Coinbase expands the availability of Bitcoin to decentralized applications and traders all across the world, as said in the announcement that was made on X.
Bitcoin Now Accessible on Solana with Coinbase’s cbBTC
The cryptocurrency exchange Coinbase has officially launched cbBTC on the Solana blockchain in order to broaden access to Bitcoin within the rapidly expanding DeFi ecosystem of Solana. It holds native Bitcoin at a ratio of one to one, backing cbBTC in the form of an SPL token.
The chain will add this new innovation to the existing array of wrapped Bitcoin options. Examples include tBTC, WBTC via Wormhole, and soon-to-be-listed zBTC and sBTC. Additionally, this completes the Bitcoin service offered by Solana.
Major decentralized finance platforms, including Jupiter Exchange, Meteora, Kamino Finance, Jito Sol, PhoenixTrade, DriftProtocol, Raydium, Orca, Save Finance, ManifestTrade, and Loopscale Labs, integrated it on the very first day. Additionally, it offers users the majority of liquidity and collateral opportunities found in Solana’s decentralized finance applications.
As positive momentum continues to gain strength, the price of Solana (SOL) appears to be on the verge of breaking out of its current range. Additionally, it elevates the cryptocurrency to a high not seen in three months. Some industry professionals believe that it could soon surpass the BNB token and hit $300.
cbBTC Making Inroads in Global Crypto Markets
Coinbase introduced cbBTC customers to Singapore, Australia, the United Kingdom, and the United States of America on September 12, excluding New York. The company initially made its wrapped Bitcoin offering available on Ethereum and Base.
The custodian of this cryptocurrency, Coinbase, fully backs it at a 1:1 ratio with Bitcoin. Additionally, the platform will manage the cbBTC cryptocurrency without the need for order books or trading pairs specifically designated for it.
By doing so, it ensures that its utilization is consistent throughout a number of chains .In just one week, CryptoQuant reports that the cryptocurrency known as cbBTC has risen to the third most used wrapped Bitcoin asset. To regain lost ground in the wrapped Bitcoin market, the token has outperformed established competitors such as Huobi BTC, HBTC, and renBTC, RENBTC.
