Coinbase to delist WBTC in favor of its own token cbBTC
WBTC may no longer meet its listing standards.
According to an announcement by the cryptocurrency exchange, Coinbase will cease support for Wrapped Bitcoin (WBTC) on December 19, 2024, at 12:00 PM ET.
While specific reasons were not disclosed, Coinbase stated that the decision followed a "recent review," suggesting that WBTC may no longer meet its listing standards.
The decision will affect all Coinbase platforms, including Coinbase.com, Coinbase Exchange, and Coinbase Prime.
The exchange has transitioned WBTC order books to "limit-only" mode, allowing users to place and cancel limit orders. Users will retain access to their WBTC holdings and the ability to withdraw funds even after support is suspended.
WBTC is an Ethereum-based token backed 1:1 by Bitcoin, enabling users to interact with decentralized finance (DeFi) applications on the Ethereum blockchain.
Competition among wrapped tokens
Since its launch in 2019, WBTC has played a key role in providing Bitcoin liquidity for DeFi markets, fostering the growth of decentralized exchanges and lending platforms. However, as the cryptocurrency landscape evolves, exchanges like Coinbase periodically reassess the relevance of listed tokens.
Notably, Coinbase recently introduced its own wrapped Bitcoin token, cbBTC, on the Ethereum and Base networks. cbBTC directly competes with WBTC and has already reached a market capitalization of $1.3 billion, surpassing 15,000 tokens in circulation.
The concerns, raised by users and industry observers, center around fears that Coinbase could seize users' Bitcoin holdings under certain conditions outlined in the service terms for the cbBTC product. Grewal has moved quickly to clarify the situation and reassure users, emphasizing Coinbase's commitment to protecting its customers' assets. He said Coinbase will fully reimburse customers if the exchange loses the underlying bitcoin.
