Coinbase to Drop WBTC and Focus on cbBTC

• Coinbase has announced plans to delist Wrapped Bitcoin (WBTC) from its trading platforms on December 19, 2024
• The decision coincides with the expansion of Coinbase’s own wrapped Bitcoin token, cbBTC, which has recently launched on the Solana network
• This strategic move reflects Coinbase’s commitment to enhancing its proprietary offerings and addressing listing concerns associated with third-party tokens

Coinbase has revealed its intention to remove Wrapped Bitcoin (WBTC) from all its trading platforms effective December 19, 2024. This announcement aligns with the company’s recent efforts to promote its native wrapped Bitcoin token, cbBTC, which has been introduced to the Solana blockchain. The delisting decision underscores Coinbase’s focus on bolstering its in-house products while mitigating potential risks linked to external tokens.

Delisting WBTC Amid cbBTC Expansion

Coinbase announced its delisting yesterday, saying only that WBTC no longer complied with its listing criteria:

<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on December 19, 2024, on or around 12pm ET.</p>&mdash; Coinbase Assets 🛡️ (@CoinbaseAssets) <a href=”https://twitter.com/CoinbaseAssets/status/1858921827159945638?ref_src=twsrc%5Etfw”>November 19, 2024</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>

The planned delisting of WBTC comes at a time when Coinbase is actively expanding cbBTC, its own wrapped Bitcoin token. On November 7, 2024, Coinbase launched cbBTC on the Solana network, marking the first token issued by the company on this blockchain. This initiative aims to provide users with seamless access to Bitcoin within Solana’s decentralized finance (DeFi) ecosystem, enhancing liquidity and fostering innovation. 

Enhanced User Experience and Security

By phasing out WBTC and promoting cbBTC, Coinbase is strategically shifting towards proprietary tokens to ensure greater control over its offerings and to address listing concerns associated with third-party assets. The introduction of cbBTC on Solana is part of Coinbase’s broader strategy to integrate Bitcoin into various DeFi applications, offering users opportunities to lend, borrow, and trade with enhanced efficiency.

Coinbase’s decision to delist WBTC reflects its commitment to providing a secure and streamlined user experience. By focusing on cbBTC, which is backed 1:1 by bitcoins held in custody by Coinbase, the company aims to offer a more transparent and reliable wrapped Bitcoin option. The company hopes that cbBTC will build trust among users and encourage broader adoption of Coinbase’s native token within the DeFi space at a time when stablecoin transparency is a hot topic with regulators.