The leading US-based cryptocurrency exchange, Coinbase, has recently listed Wrapped Bitcoin (WBTC) on its platform to enable its users to trade, send, and store the token with ease. In a Wednesday announcement, the exchange stated that its clients can now buy, sell, send, receive, and store WBTC via its online trading platform, Android, and iOS apps.
Coinbase had announced in July that WBTC was among the many DeFi-focused focused tokens it was considering for a potential listing on the platform amid growing adoption in that corner of the cryptocurrency industry.
WBTC Lands on Coinbase
WBTC is an ERC-20 token, built on the Ethereum network to represent Bitcoin on the Ethereum network. WBTC seeks to combine the best features of both networks by bringing the value of Bitcoin to the Ethereum network as well as making it viable for use in DeFi protocols.
WBTC is not a replacement for Bitcoin but rather a token created to keep track of Bitcoin’s value. The token’s value is equal to the value of Bitcoin so that users can exchange 1 Bitcoin for 1 Wrapped Bitcoin on the trading platform and vice versa.
Kyber, Ren, and BitGo first started the token. It is currently maintained by an organized group known as the WBTC DAO, which is made up of more than thirty members, including Compound, Airswap, and MakerDAO. WBTC is primarily used on DeFi protocols with over $1.2 billion worth of bitcoins currently locked in the token’s smart contract according to tracking website, DeFi Pulse.
The listing of WBTC on Coinbase can thus be attributed to several requests from Coinbase users looking to diversify their portfolios and participate in DeFi. Coinfomania recently reported that the number of people wrapping their bitcoins grew by 300% in September.
Meanwhile, Coinbase is also reportedly making plans for a landmark stock market listing that would allegedly happen next year. The exchange is said to be in talks to hire top law firms and investment banks to help with the official filing of the stock market listing which would be approved by the US Securities and Exchange Commission (SEC).
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Author: Obike Favour