Coinbase has just taken a major step forward in the evolution of Bitcoin’s utility within the decentralized finance (DeFi) space by launching cbBTC on-chain. This new, wrapped version of Bitcoin, now available on Base and Ethereum, is designed to connect the world’s most popular crypto asset to a wider range of financial applications, enabling users to seamlessly access DeFi apps using their existing Bitcoin.
Why cbBTC Matters
As Bitcoin continues to play a crucial role in onboarding millions of users into the crypto space, cbBTC offers a new level of utility for Bitcoin holders. Historically, Bitcoin’s use has been somewhat limited in DeFi, but cbBTC changes that by enabling holders to interact with decentralized apps and financial services on Base and Ethereum chains.
Coinbase is building on its recent integration of the Lightning Network, which facilitates instant and low-cost Bitcoin payments. Now, with cbBTC, Coinbase is pushing Bitcoin’s role in DeFi further by bridging off-chain liquidity into decentralized ecosystems, creating more opportunities for users to put their Bitcoin to work.
What is cbBTC?
cbBTC is a wrapped version of Bitcoin, backed 1:1 by Bitcoin held securely in Coinbase’s custody. Coinbase has over 10 years of experience securing billions in Bitcoin for institutions and customers worldwide, giving cbBTC a trusted foundation. By issuing cbBTC, Coinbase links deep Bitcoin liquidity with the low-cost, high-speed financial rails of Base and Ethereum, providing a more interconnected financial system.
Unlike some other wrapped assets, cbBTC is designed for seamless compatibility with a wide range of DeFi applications, allowing users to provide liquidity, borrow crypto assets using Bitcoin as collateral, and participate in yield-generating strategies—all while keeping their Bitcoin exposure.
Where Can You Use cbBTC?
On day one, cbBTC has been integrated with a wide range of popular DeFi protocols and apps, making it easier than ever to put your Bitcoin to work. Users can engage in a variety of DeFi activities, including trading, lending, and yield farming.
Here are the key platforms supporting cbBTC at launch:
- DEXs: Aerodrome, Curve, BaseSwap, Matcha, Uniswap
- Lending Platforms: Aave, Compound, Morpho, Moonwell, Spark
- Yield Vaults: Mellow, Veda
- Cross-Chain Swaps: DeBridge, DeFinitive
- Oracles: Chronicle Labs
- Risk Management: Block Analitica, Gauntlet, Steakhouse
- Real-World Assets (RWA): Maple
By integrating with these platforms, cbBTC enables users to unlock a wide array of DeFi use cases, from liquidity provisioning and borrowing to yield farming, making it a versatile tool in any DeFi strategy.
How cbBTC Works
The process of converting Bitcoin to cbBTC is simple and seamless for Coinbase users. When users send their Bitcoin from Coinbase to an address on Base or Ethereum, the Bitcoin is automatically converted into cbBTC on a 1:1 basis. Similarly, when users receive cbBTC back into their Coinbase accounts, it will be converted from cbBTC to Bitcoin at the same 1:1 rate.
Importantly, cbBTC will not have a separate order book or trading pair on Coinbase itself, but it will be tradable on decentralized exchanges (DEXs) like BaseSwap, Curve, and Uniswap via Coinbase Wallet. It may also become available on third-party exchanges that choose to support the asset.
At launch, cbBTC is available in multiple regions, including the U.S. (excluding New York State), UK, EEA states, Singapore, Australia, and Brazil. Globally, cbBTC can be accessed on both Base and Ethereum chains.
Expanding Bitcoin’s DeFi Horizons
The introduction of cbBTC is a major milestone in making Bitcoin more accessible to the world of DeFi. By linking Bitcoin’s liquidity to faster, more cost-effective chains like Base and Ethereum, Coinbase is opening up new possibilities for both individual users and institutions. The move also positions Coinbase as a leader in bringing traditional Bitcoin liquidity into the DeFi space, helping to build a more efficient and interconnected financial system.
As Coinbase continues to innovate, the company plans to expand support for cbBTC to more blockchains, driving broader adoption of Bitcoin in DeFi and further pushing the boundaries of what can be done with digital assets.
To learn more about cbBTC, visit Coinbase’s official page or start exploring DeFi opportunities on BaseSwap, Uniswap, and other supported platforms.
Smart Contract Address for cbBTC:
- Base:
0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf - Ethereum:
0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf
As Coinbase puts it, cbBTC is moving money forward, taking us one step closer to bringing 1 billion people on-chain.