Wrapped Bitcoin

<div class="intro-text">
 Coinbase may be preparing to launch a new product, specifically a wrapped Bitcoin token. 
</div>
Two<a style="color: #0000ff;" href="https://x.com/coinbase/status/1823501582006411614" rel="noopener noreferrer nofollow"> cryptic</a><a style="color: #0000ff;" href="https://x.com/coinbase/status/1823529439663403040" rel="noopener noreferrer nofollow"> posts</a> from the US-based cryptocurrency exchange’s official X account containing the words “cbBTC,” followed by a “coming soon,” have prompted this speculation.
<blockquote class="twitter-tweet">
 Coming soon.
 — Coinbase <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6e1.png" alt="🛡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@coinbase) <a href="https://twitter.com/coinbase/status/1823529439663403040?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 14, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet">
 cbBTC.
 — Coinbase <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6e1.png" alt="🛡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@coinbase) <a href="https://twitter.com/coinbase/status/1823501582006411614?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 13, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Also, Jesse Pollak, head of Coinbase’s Layer 2 network Base, expressed enthusiasm for Bitcoin in a recent<a style="color: #0000ff;" href="https://twitter.com/jessepollak/status/1823515062658830681?t=jZLIqR7UgvMBKHo_Fl3P3A&amp;s=19" rel="noopener noreferrer nofollow"> post</a> on X, stating there are plans to develop a “massive Bitcoin economy” on Base.
Meanwhile, these developments follow a recent controversy involving BitGo, the team behind the current leading Wrapped Bitcoin (WBTC) product, and Tron founder Justin Sun.
On August 9, BitGo<a href="https://blog.bitgo.com/bitgo-to-move-wbtc-to-multi-jurisdictional-custody-to-accelerate-global-expansion-plan-2ea0623fa2c8" rel="noopener noreferrer nofollow"> announced</a> plans to transfer control of WBTC to a new joint venture consisting of BitGo, Hong Kong-based investment manager BiT Global, and Sun’s Tron ecosystem. However, this move has sparked outrage from the crypto community.
In response to the announcement, Block Analitica (B.A.), a crypto risk management firm,<a style="color: #0000ff;" href="https://forum.makerdao.com/t/wbtc-changes-and-risk-mitigation-10-august-2024/24844/4" rel="noopener noreferrer nofollow"> proposed</a> on MakerDAO’s governance forum to halt all new Wrapped Bitcoin (WBTC) debts and stop borrowing against WBTC collateral. B.A. cited concerns about Justin Sun’s involvement in the new WBTC joint venture, deeming it an unacceptable risk.
<blockquote>
 “We find that Sun’s involvement as a controlling interest in the new WBTC joint venture presents an unacceptable level of risk,” 
</blockquote>
the firm wrote in the post, which was published on August 10.
In an attempt to alleviate concerns, Sun has<a style="color: #0000ff;" href="https://twitter.com/justinsuntron/status/1822370692014485937?t=UHDTV1M5JYV_oShY2WkZvg&amp;s=19" rel="noopener noreferrer nofollow"> addressed</a> the controversy, emphasizing that his role in the new WBTC venture is “strategic” and does not grant him direct access to funds.
BitGo’s CEO, Mike Belshe, has also<a style="color: #0000ff;" href="https://news.bitcoin.com/wbtc-custody-changes-prompts-defi-moves-bitgo-ceo-disregard-concerns/" rel="noopener noreferrer nofollow"> reportedly</a> addressed the concerns, stating they were valid. Belshe, however, noted that Sun was not part of the new venture’s management team and didn’t have key material access, but he was “materially involved.”
In a separate development, Coinbase is currently facing regulatory challenges in the UK. The country’s top regulator, <a style="color: #0000ff;" href="https://defi-planet.com/2024/07/coinbase-fined-3-5-million-by-uks-fca-for-violating-high-risk-client-restrictions/" rel="noopener noreferrer nofollow">the Financial Conduct Authority (FCA), has fined the exchange’s UK subsidiary, C.B. Payments Limited (CBPL), £3.5 million </a>for repeatedly breaching regulations designed to prevent it from serving high-risk customers. The FCA noted that these breaches resulted from significant lapses in compliance and oversight that went undetected for nearly two years.
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The post <a href="https://defi-planet.com/2024/08/coinbase-teases-new-wrapped-bitcoin-product-amidst-bitgo-wbtc-controversy/" rel="noopener noreferrer nofollow">Coinbase Teases New Wrapped Bitcoin Product Amidst BitGo–WBTC Controversy</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Coinbase Teases New Wrapped Bitcoin Product Amidst BitGo–WBTC Controversy

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