{"id":90046,"date":"2024-08-16T11:42:51","date_gmt":"2024-08-16T15:42:51","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=90046"},"modified":"2024-08-16T11:44:28","modified_gmt":"2024-08-16T15:44:28","slug":"coinbases-cbbtc-token-to-transform-btc-defi-adoption","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/coinbases-cbbtc-token-to-transform-btc-defi-adoption\/","title":{"rendered":"Coinbase’s cbBTC Token To Transform Bitcoin DeFi Adoption"},"content":{"rendered":"\n

Coinbase's entry <\/a>signals the latest major institutional entrant into the field\u00a0of BTCFi.<\/p>\n\n\n\n

\"Coinbase's<\/figure>\n\n\n\n

Coinbase, the world\u2019s second-largest cryptocurrency exchange, is poised to significantly advance the adoption of Bitcoin-native decentralized finance (DeFi).<\/p>\n\n\n\n

The exchange recently hinted at developing a new Wrapped Bitcoin<\/a> (BTC) token, Coinbase BTC (cbBTC), sparking considerable excitement among crypto investors.<\/p>\n\n\n\n

\"Coinbase's
cbBTC announcement. Source: Coinbase<\/em><\/figcaption><\/figure>\n\n\n\n

According to Rena Shah, Chief Operating Officer of Trust Machines, a company focused on Bitcoin solutions, the new token could greatly enhance Bitcoin-native DeFi. Shah told Cointelegraph:<\/p>\n\n\n\n

\n

\u201cThe opportunity for cbBTC, based solely on current Coinbase users, is a massive onboarding opportunity for Bitcoin DeFi\u2026\u201d<\/p>\n<\/blockquote>\n\n\n\n

This move by Coinbase represents a significant step for Bitcoin DeFi, or BTCFi, a broader initiative aimed at increasing the utility of the Bitcoin network. <\/p>\n\n\n\n

Interest in BTCFi surged with the launch of Runes, a new protocol for creating fungible tokens on the Bitcoin network, which debuted on April 20, coinciding with the halving event.<\/p>\n\n\n\n

The announcement comes three months after the introduction of USDh, the first Bitcoin-backed synthetic dollar, which launched with a 25% yield for investors.<\/p>\n\n\n\n

Coinbase cbBTC Adoption Relies on DApp Usage<\/h2>\n\n\n\n

Coinbase\u2019s new wrapped token stands to benefit from the mainstream trust associated with the exchange. <\/p>\n\n\n\n

However, its adoption will primarily hinge on the demand generated by decentralized applications (DApps) and the use cases offered by the token, according to Shah:<\/p>\n\n\n\n

\n

\u201cThe value proposition made by these EVM wrappers isn't compelling enough for Bitcoin native audiences, and I predict those who enter through them will soon see the benefit in more decentralized approaches that keep the secure and immutable nature of Bitcoin intact.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Shah also noted that the success of cbBTC will depend on the number of developers attracted to the token, with builders seeking more decentralized and non-custodial solutions.<\/p>\n\n\n\n

Bitcoin Liquidity Could Drive DeFi Growth<\/h2>\n\n\n\n

The DeFi sector could experience significant growth from the liquidity provided by the Bitcoin ecosystem. <\/p>\n\n\n\n

This insight was a key factor in developing Wrapped Bitcoin (wBTC), as Loi Luu, a core contributor to wBTC, explained in an Aug. 13 X post:<\/p>\n\n\n\n

\n

\u201cDeFi's total value locked (TVL) was only in the tens of millions. We realized that to really help DeFi grow, we needed to bring Bitcoin liquidity into the ecosystem.\u201d<\/p>\n<\/blockquote>\n\n\n\n

While wBTC is an ERC-20 token on the Ethereum network<\/a>, it is considered one of the first major BTCFi innovations, enhancing utility and capital efficiency for Bitcoin. <\/p>\n\n\n\n

\"Coinbase's
WBTC market cap. Source: CoinMarketCap<\/em><\/figcaption><\/figure>\n\n\n\n

According to CoinMarketCap\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, Wrapped Bitcoin has a market capitalization exceeding $9 billion, marking a more than 100% increase over the past year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Coinbase’s entry signals the latest major institutional entrant into the field\u00a0of BTCFi. Coinbase, the world\u2019s second-largest cryptocurrency exchange, is poised to significantly advance the adoption of Bitcoin-native decentralized finance (DeFi). The exchange recently hinted at developing a new Wrapped Bitcoin (BTC) token, Coinbase BTC (cbBTC), sparking considerable excitement among crypto investors. According to Rena Shah, […]<\/p>\n","protected":false},"author":56,"featured_media":90057,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[12094,152,10580,710,150,984,1996,197],"class_list":["post-90046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-adoption-2","tag-bitcoin","tag-bitcoin-halving","tag-business","tag-coinbase","tag-cryptocurrency-exchange","tag-decentralization","tag-defi"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/08\/Coinbases-cbBTC-Token-To-Transform-Bitcoin-DeFi-Adoption.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/90046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=90046"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/90046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/90057"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=90046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=90046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=90046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}