Originally published on: November 08, 2024
Coinbase, the leading cryptocurrency exchange in the US, has made a groundbreaking move by introducing its version of wrapped Bitcoin on Solana’s layer-1 blockchain. This strategic deployment aims to boost the adoption of this asset in the world of decentralized finance (DeFi).
In an exciting announcement on Nov. 7, Coinbase shared its plans to bring easy access to BTC through its new token, cbBTC, on Solana. This Solana Program Library (SPL) token is backed 1:1 with Bitcoin, allowing users to seamlessly utilize Bitcoin within Solana’s growing DeFi ecosystem.
The company highlighted that cbBTC will be available on various Solana-based decentralized exchanges and DeFi protocols, including Jupiter, Meteora, Kamino Finance, Raydium, Phoenix, Jito, and Drift. The team behind Kamino Finance expressed their vision for Kamino to become a major venue for cbBTC trading in the DeFi space.
This move by Coinbase marks a significant milestone as it aims to address the gap left by previous Solana-based wrapped Bitcoin assets. With the market capitalization of cbBTC surpassing $1 billion since its launch, it is poised to make a strong impact in the DeFi realm.
Furthermore, cbBTC joins the ranks of other programmable Bitcoin variants on Solana, such as tBTC by Threshold, zBTC by Zeus Network, and WBTC via Wormhole, strengthening the network’s position in the crypto space.
Solana’s DeFi sector has experienced a remarkable recovery in 2024, witnessing a 250% increase in total value locked since the beginning of the year, reaching $8.25 billion. This growth reflects the rising demand for DeFi solutions on the Solana network.
As the industry continues to evolve, Coinbase’s initiative to launch wrapped Bitcoin on Solana signifies a new era for DeFi innovation and accessibility. With the market evolving rapidly, crypto enthusiasts can expect more exciting developments in the DeFi space in the days to come.
Don’t miss out on the latest trends in DeFi and crypto finance. Subscribe to the Finance Redefined newsletter for weekly insights, analysis, and opportunities to stay ahead of the curve. Join us as we explore the future of finance together.
