Coinbase Ditches wBTC, Backs Its Own Bitcoin-Wrapped Token, cbBTC

• Coinbase launches cbBTC on Solana, allocating $10M to protocols and $500K for liquidity reserves.  
• Coinbase delists wBTC citing listing standards amid scrutiny over BitGo’s ties to Justin Sun’s BiT Global.  
• Transparency issues and lack of proof-of-reserves fuel debate over Bitcoin-wrapped tokens cbBTC and wBTC.  

The battle for dominance in the Bitcoin-wrapped token space intensified as Coinbase endorsed its own product, cbBTC, while delisting Wrapped Bitcoin (wBTC).

Coinbase’s cbBTC: Expanding to Solana

Coinbase recently introduced cbBTC, its Bitcoin-wrapped token to the Solana blockchain. This integration will allow users to send Bitcoin to Coinbase, receive cbBTC in their Solana wallets, and trade it within Solana’s growing DeFi protocols.

Read also : Justin Sun Explains the Limits of His Influence on WBTC

Additionally, Coinbase allocated $10 million worth of cbBTC to Solana protocols and an additional $500,000 in trading pools to increase liquidity.

However, questions remain about the transparency and security of cbBTC, given criticisms of the token’s lack of proof-of-reserves and audit processes.

wBTC Delisting

Conversely, Wrapped Bitcoin (wBTC), a popular token representing Bitcoin on Ethereum and other blockchains, is facing delisting from Coinbase.

Starting December 19, trading for wBTC will be suspended across Coinbase.com, Coinbase Exchange, and Coinbase Prime, although users can still withdraw their funds. The exchange cited its “listing standards” as the reason.

https://twitter.com/CoinbaseAssets/status/1858921827159945638

This decision coincides with growing scrutiny of wBTC’s custodian, BitGo, which recently entered a joint venture with BiT Global. The partnership has drawn criticism due to BiT Global’s partial ownership by Justin Sun.

Although BitGo CEO Mike Belshe emphasized that Sun has limited control over BiT Global’s operations and the custodian’s keys are managed by multiple parties, the association has raised concerns among crypto enthusiasts.

Concerns over custodial control and proof-of-reserves continue to shape the discussion around Bitcoin-wrapped tokens. Both wBTC and cbBTC face challenges as they strive to meet the demands in the crypto market.

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