Coinbase said that cbBTC is the first token issued on Solana.
Coinbase, the world’s leading crypto exchange, has rolled out its version of wrapped Bitcoin on the Solana blockchain. Announced on November 7, the move aims to broaden Bitcoin’s adoption in decentralized finance (DeFi) by introducing cbBTC, a token backed 1:1 with Bitcoin.
“This is the first token Coinbase has issued on Solana, and with it, we’re excited to bring easy access to BTC,” the company shared in a post on X. The cbBTC token functions as a Solana Program Library (SPL) token, representing fungible assets on the Solana network.
cbBTC is live on @solana.
— Coinbase 🛡️ (@coinbase) November 7, 2024
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 ↓
According to Solscan, Solana’s blockchain explorer, Coinbase, has already transferred around 135 cbBTC, worth approximately $10 million, to Solana. The token is now accessible 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 fills a void left by soBTC, a previous Solana-based wrapped Bitcoin that faltered during the FTX exchange collapse.
Coinbase’s Singapore country director, Hassan Ahmed, first revealed plans for cbBTC at the Breakpoint event in September. The new token joins 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 launch in mid-September, Coinbase’s wrapped Bitcoin asset has seen its market capitalization soar to over $1 billion. This positions it as a significant competitor to BitGo’s Wrapped Bitcoin, which has a market cap of $11 billion and is widely used across various blockchain networks.
Solana’s DeFi Sector Sees Significant Growth
In 2024, Solana’s decentralized finance sector has grown significantly. The total value locked in Solana DeFi reached $8.25 billion, increasing by 250% since the beginning of the year, according to DefiLlama. In comparison, Ethereum’s DeFi has been recovering more slowly, with its total value locked rising by 72% to $60 billion this year.
Positive developments have also boosted Solana’s native token SOL. After the cbBTC announcement, prices went up by 3.4%, reaching $200 in early trading on November 8.
Coinbase’s introduction of cbBTC to Solana enhances Bitcoin’s use in the DeFi space and supports the diversification of decentralized financial services. The move shows the growing collaboration between major crypto platforms and blockchain networks to advance the adoption of digital assets.
next