Coinbase is developing a new token called ‘cbBTC,’ an alternative to BitGo’s Wrapped Bitcoin (wBTC), designed to integrate Bitcoin on Coinbase’s layer 2, Base.
Première étape de teasing sur les réseaux sociaux
The initiative was enigmatically revealed through posts on X (formerly Twitter) by both Coinbase and Jesse Pollack, the creator of Base. The messages posted on Wednesday morning contained clues such as ‘cbBTC’ and ‘Coming soon,’ hinting at the imminent arrival of this new asset.
Pollack also mentioned the desire to build a ‘massive Bitcoin economy’ on the Base blockchain, fueling speculation about Coinbase’s plans.
Fonctionnement des wrapped tokens
The concept of wrapping a crypto like Bitcoin allows it to be used on blockchains other than its original network. In this case, a token like wBTC or potentially cbBTC represents an equal amount of the original Bitcoin, held in reserve by a trusted entity. When the token owner wants to convert it back into real BTC, the token is burned, and the equivalent Bitcoin is released from the reserve.
Contexte autour du wBTC de BitGo
Coinbase’s initiative comes at a time when BitGo’s Wrapped Bitcoin, although still stable and functional, is facing discussions and controversies. BitGo recently announced a partnership with BiT Global, a Hong Kong-based custody platform partially owned by the Tron ecosystem led by Justin Sun.
This partnership, while not changing anything technically about the wBTC product, has sparked mixed reactions within the crypto community. Justin Sun has long been seen as a risky personality in the ecosystem, with controversial decisions and actions.
Réactions et conséquences pour l’avenir
On the MakerDAO forums, the issuer of the stablecoin DAI, some have voiced opposition to using wBTC, with an executive proposal to stop borrowing in wBTC and reduce debt limits to zero to minimize risks. However, data from Dune shows no significant change in wBTC supply, suggesting that users are not fleeing the protocol en masse.
Justin Sun has also attempted to reassure the community by stating that there will be ‘no changes for wBTC’ outside the new joint venture, and that he does not control the protocol’s private keys or associated BTC reserves.
The development of cbBTC by Coinbase could be a significant alternative for users looking to use Bitcoin on the Base blockchain, especially in a context where trust in wBTC is being scrutinized. This project could strengthen Coinbase’s position in the crypto ecosystem while providing a new opportunity for integrating Bitcoin into decentralized applications (dApps) on Base.
