Wrapped Bitcoin

Bitcoin

cbBTC

Coinbase Wrapped BTC

Coinbase plans to add verifiable proof of reserves to its newly launched Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) wrapper, Coinbase Wrapped BTC (cbBTC), a spokesperson for Coinbase confirmed to Cointelegraph on Sept. 30.
Adding proof of reserves (PoR) will put cbBTC on par with rival Bitcoin wrappers such as Wrapped Bitcoin (WBTC) and 21.co Wrapped Bitcoin (21BTC). It also addresses concerns about Coinbase’s perceived lack of transparency.&nbsp;
“With cbBTC, we’ve planned PoR since the early days and the team is hard at work building it,” Lukas Staniszewski, a product manager at Coinbase, said in a Sept. 23 <a data-ct-non-breakable="null" href="https://x.com/call_me_lukas/status/1838333569975853117" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://x.com/call_me_lukas/status/1838333569975853117">post</a> on the X platform.&nbsp;
<figure><img alt="Coinbase to add proof of reserves to Bitcoin wrapper cbBTC" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01924487-3f58-7b10-9aef-813368364305">
 <figcaption style="text-align: center;">
 Chainlink proof of reserve. Source: <a data-ct-non-breakable="null" href="https://chain.link/proof-of-reserve" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://chain.link/proof-of-reserve">Chainlink</a>
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/21-co-bitcoin-wrapper-chainlink-proof-of-reserve" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/21-co-bitcoin-wrapper-chainlink-proof-of-reserve">21.co Bitcoin wrapper to add Chainlink proof of reserve</a>
On Sept. 23, Coinbase updated an earlier blog <a data-ct-non-breakable="null" href="https://www.coinbase.com/blog/coinbase-wrapped-btc-cbbtc-is-now-live" rel="noopener noreferrer nofollow" target="null" text="null" title="null">post</a> to note PoR’s inclusion on cbBTC’s product roadmap but has not announced the plans otherwise.&nbsp;
“Greater transparency with proof of reserves has been part of our roadmap since the conception of cbBTC and will follow,” Coinbase said.&nbsp;
In September, Coinbase was criticized for allegedly lagging rival Bitcoin wrappers in transparency. It was also the target of unfounded rumors alleging Coinbase was issuing unbacked Bitcoin IOUs to BlackRock, a crypto exchange-traded fund (ETF) sponsor.&nbsp;
“[A]lmost every single bridge (including WBTC) provides a Proof of Reserves so you can check that the issued coins are backed but Coinbase doesn’t,” 0xngmi, DefiLlama’s pseudonymous developer, said in a Sept. 23 <a data-ct-non-breakable="null" href="https://x.com/0xngmi/status/1838210973192130581" rel="noopener noreferrer nofollow" target="null" text="null" title="null">post</a> on the X platform.&nbsp;
“cbBTC is way below the standard in terms of transparency,” 0xngmi added.
<figure><img alt="Coinbase to add proof of reserves to Bitcoin wrapper cbBTC" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01924489-a347-71f3-ad52-43cf92a768d6">
 <figcaption style="text-align: center;">
 Wrapped tokens by market capitalization. Source: <a data-ct-non-breakable="null" href="https://www.coingecko.com/en/categories/wrapped-tokens" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.coingecko.com/en/categories/wrapped-tokens">CoinGecko</a>
 </figcaption>
</figure>
Launched on Sept. 12, Coinbase’s cbBTC has emerged as one of the most popular BTC wrappers, with some $250 million in total value locked (TVL), according to CoinMarketCap.&nbsp;
Coinbase’s cbBTC stands out among Bitcoin wrappers in <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-chief-legal-officer-responds-to-cb-btc-service-terms-fears" rel="noopener noreferrer nofollow" target="null" text="null" title="null">committing</a> to reimburse holders for losses from certain cybersecurity exploits. It is also subjected to extensive oversight by New York’s Department of Financial Services.
Initially mintable on Ethereum and Base — Coinbase’s layer-2 scaling network — cbBTC will soon launch on Solana, according to a Sept. 20 <a data-ct-non-breakable="null" href="https://x.com/solana/status/1837338949955768613" rel="noopener noreferrer nofollow" target="null" text="null" title="null">post</a> on the X platform.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/ordinals-turned-bitcoin-into-a-worse-version-of-ethereum-can-we-fix-it/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Ordinals turned Bitcoin into a worse version of Ethereum: Can we fix it?</a><advertisement>
 <advertisement>
 <advertisement>
 <advertisement>
 <advertisement>
 <template data-name="subscription_form" data-type="defi_newsletter" label="Subscription Form: DeFi Newsletter"></template> 
 </advertisement> 
 </advertisement> 
 </advertisement> 
 </advertisement> 
</advertisement>

Coinbase to add proof of reserves to Bitcoin wrapper cbBTC

Cointelegraph

Other articles published on Sep 30, 2024

Bitcoin, Ethereum, Dogecoin Price Dip Before Powell’s Speech

What is a Block Reward: Miners’ Motivation in Blockchain

Bitcoin Flash Crashes: What’s Causing Them and What to Do?

Merlin Chain Partners with UXUY to Enhance DeFi Accessibility on Telegram

Smart contract blockchains will become less cypherpunk, says VC boss

Over $1 Billion in Bitcoin Spot ETFs, What Happened?

Join our free newsletter for daily crypto updates!