Coinbase Launches cbBTC Wrapped Bitcoin on Solana Blockchain
Coinbase, the leading crypto exchange, has launched its wrapped Bitcoin on the Solana blockchain. Announced on November 7, the initiative aims to enhance Bitcoin's adoption in decentralized finance (DeFi) with cbBTC, a token backed 1:1 by Bitcoin.
“This is the first token Coinbase has issued on Solana, and we’re excited to bring easy access to BTC,” the company stated on X. The cbBTC token operates as a Solana Program Library (SPL) token, representing fungible assets on the Solana network.
cbBTC is live on @solana.
cbBTC is an SPL token that is backed 1:1 by Bitcoin (BTC) held in custody by Coinbase.
This is the first token Coinbase has issued on Solana, and with it, we're excited to bring easy access to BTC.
Here’s what you can do with your cbBTC on day one ↓
— Coinbase 🛡️ (@coinbase) November 7, 2024
According to Solscan, Coinbase has transferred around 135 cbBTC, valued at approximately $10 million, to Solana. The token is available on several Solana-based decentralized exchanges and DeFi platforms, including Jupiter, Meteora, Kamino Finance, Raydium, Phoenix, Jito, and Drift.
Solana's DeFi Expansion with cbBTC
“Bitcoin is king, and the vision is for Kamino to be one of the largest cbBTC venues in DeFi,” stated the team behind Kamino Finance, a Solana-based lending and liquidity protocol. The introduction of cbBTC addresses the gap left by soBTC, which declined during the FTX exchange collapse.
Coinbase's Singapore country director, Hassan Ahmed, announced plans for cbBTC at the Breakpoint event in September. The token adds to a growing list of programmable Bitcoin variants on Solana, including Threshold's tBTC, Zeus Network's zBTC, and WBTC via Wormhole, as noted by the Solana team on November 7.
Since its mid-September launch, Coinbase's wrapped Bitcoin asset has achieved a market capitalization exceeding $1 billion, positioning it as a notable competitor to BitGo's Wrapped Bitcoin, which has a market cap of $11 billion and is widely utilized across various blockchain networks.
Solana's DeFi Sector Sees Significant Growth
In 2024, Solana's DeFi sector has expanded significantly. The total value locked in Solana DeFi reached $8.25 billion, up 250% since the year's start, according to DefiLlama. In contrast, Ethereum's DeFi has seen a slower recovery, with its total value locked increasing by 72% to $60 billion this year.
Positive developments have also benefited Solana's native token SOL. Following the cbBTC announcement, prices increased by 3.4%, reaching $200 in early trading on November 8.
Coinbase's launch of cbBTC on Solana enhances Bitcoin's utility in the DeFi space and supports the diversification of decentralized financial services. This move reflects the increasing collaboration between major crypto platforms and blockchain networks to promote digital asset adoption.