Originally published on: September 30, 2024
Coinbase is gearing up to enhance its recently launched Bitcoin wrapper, Coinbase Wrapped BTC (cbBTC), by incorporating verifiable proof of reserves (PoR). This move aims to boost transparency and address concerns regarding Coinbase’s level of openness, as confirmed by a Coinbase spokesperson to Cointelegraph on September 30.
By including PoR, cbBTC will join the ranks of competitors like Wrapped Bitcoin (WBTC) and 21.co Wrapped Bitcoin (21BTC). Product manager at Coinbase, Lukas Staniszewski, stated in a recent post on the X platform that PoR has been a part of cbBTC’s plan since the beginning, with the team actively working on its implementation.
Despite not making a formal announcement, Coinbase updated a previous blog post on September 23 to outline the inclusion of PoR in cbBTC’s product roadmap.
Ensuring greater transparency through proof of reserves has been a key element of cbBTC’s development from its inception, according to Coinbase. This move comes after critiques were raised against Coinbase for lagging behind other Bitcoin wrappers in terms of transparency.
The launch of cbBTC on September 12 has garnered significant attention, with approximately $250 million in total value locked (TVL), as per CoinMarketCap. One of cbBTC’s distinguishing features is its commitment to reimbursing holders in the event of specific cybersecurity breaches and its close scrutiny by New York’s Department of Financial Services.
Originally available on Ethereum and Base, Coinbase’s layer-2 scaling network, cbBTC is set to expand its reach to the Solana blockchain, as detailed in a recent post on the X platform.
With the incorporation of PoR and a focus on transparency and security, Coinbase’s cbBTC is poised to maintain its position as a leading Bitcoin wrapper in the market.
