Coinbase plans to add verifiable reserve evidence to its newly launched Bitcoin (BTC) wrapper, Coinbase Wrapped BTC (cbBTC), a Coinbase spokesperson confirmed to Cointelegraph on September 30.
The addition of Proof of Reserves (PoR) puts cbBTC on par with competing Bitcoin wrappers such as Wrapped Bitcoin (WBTC) and 21.co Wrapped Bitcoin (21BTC). It also addresses concerns about Coinbase’s lack of transparency.
“With cbBTC, we have been planning PoR from the beginning and the team is working hard to build it,” Lukas Staniszewski, product manager at Coinbase, said in a September 23 X platform post.
Proof of Chainlink holdings. source: chain link
relevant: 21.co Bitcoin Wrapper Adds Chainlink Proof of Holdings
On September 23, Coinbase updated its previous blog post to note that cbBTC’s product roadmap includes PoR, but has not otherwise announced any plans.
“Increasing transparency through Proof of Reserves has been and will continue to be a part of our roadmap since the conception of cbBTC,” Coinbase said.
Last September, Coinbase came under criticism for lagging behind rival Bitcoin Wrapper in transparency. It was also the target of unsubstantiated rumors that Coinbase had issued unsecured Bitcoin IOUs to cryptocurrency exchange-traded fund (ETF) sponsor BlackRock.
“(A)very single bridge (including WBTC) offers proof of holdings, so you can check if your minted coins are supported but not Coinbase,” 0xngmi, a pseudonymous developer at DefiLlama, posted to X on September 23. said in the post. platform.
“cbBTC is far below the standard in terms of transparency,” 0xngmi added.
Tokens wrapped based on market capitalization. source: CoinGecko
Launched on September 12, Coinbase’s cbBTC has emerged as one of the most popular BTC wrappers, with a total value locked (TVL) of approximately $250 million, according to CoinMarketCap.
Coinbase’s cbBTC stands out among Bitcoin wrappers, promising to compensate holders for losses caused by certain cybersecurity attacks. It is also subject to extensive oversight by the New York State Department of Financial Services.
According to a September 20th post on the cbBTC will be launched on Solana soon.
magazine: Ordinals turned Bitcoin into a worse version of Ethereum. Can we fix it?