Coinbase, the largest cryptocurrency trading platform in the United States, announced the launch of Coinbase Wrapped Bitcoin (cbBTC), a Bitcoin (BTC)-based Ethereum (ETH)-based token.
In a new thread on social media platform X, Coinbase announced that cbBTC is now on-chain and ready to go. This means anyone holding the top cryptocurrency by market cap can now access decentralized finance (DeFi) apps on the Base and Ethereum blockchains.
According to Coinbase, cbBTC will be available on several popular DeFi networks, including Aave (AAVE), Curve Finance (CRV), Compound Finance (COMP), Moonwell (WELL), and Maple Finance (MPL).
In a new blog post, Coinbase explains how BTC holders can streamline their DeFi experience by using the king of cryptocurrencies offered by Coinbase.
“cbBTC removes a key point of friction by allowing users to use the Bitcoin they already own in new ways on-chain. cbBTC is built to be fully compatible with DeFi applications, so users can now leverage new DeFi use cases, such as providing Bitcoin as liquidity to DeFi protocols or using it as collateral to borrow other crypto assets…
When a Coinbase user sends BTC from Coinbase to a Base or Ethereum address, that BTC is automatically converted 1:1 to cbBTC. When a user receives cbBTC in their Coinbase account, the cbBTC is converted 1:1 to BTC.”
At the time of writing, Bitcoin is trading at $57,688, up 2% over the last 24 hours.
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Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investment in Bitcoin, cryptocurrencies or digital assets. Your transfers and transactions are at your own risk and any losses you may incur are your own responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets and The Daily Hodl is not an investment advisor. The Daily Hodl participates in affiliate marketing.
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