Coinbase, America's leading cryptocurrency exchange, has announced the launch of wrapped Bitcoin on Solana, signifying the company's effort to strengthen Bitcoin's integration into decentralized finance.
Introduction of cbBTC and Its Role
The new digital asset, cbBTC, is released as a Solana Program Library (SPL) token, with each unit backed by real Bitcoin on a 1:1 basis. This allows Bitcoin to be integrated into Solana's dynamic DeFi ecosystem.
Support and Coinbase's Plans
Prominent DeFi protocols and decentralized exchanges such as Jupiter, Meteora, Kamino Finance, Raydium, Phoenix, Jito, and Drift will support cbBTC. At the Breakpoint event in September, Coinbase's Singapore country director, Hassan Ahmed, revealed plans for launching cbBTC on Solana. Approximately 135 cbBTC, equivalent to about $10 million, has been deployed to Solana.
Impact on Solana and the Market
Coinbase's move replaces soBTC, a wrapped Bitcoin on Solana that struggled after the FTX collapse. cbBTC joins other wrapped Bitcoin variants on Solana, including Threshold’s tBTC, Zeus Network’s zBTC, and WBTC accessed via Wormhole. cbBTC's market capitalization has surpassed $1 billion.
The launch of cbBTC strengthens Solana's position in the DeFi sector. The total value locked on Solana has sharply increased in 2024, exceeding $8.25 billion, indicating a revival of DeFi on the platform.
