Coinbase Expands cbBTC to Solana, Enhancing DeFi Options for Bitcoin Holders

Coinbase has officially expanded its wrapped Bitcoin product, cbBTC, to the Solana blockchain. Launched initially in September, cbBTC was available only on Ethereum and Coinbase's Layer 2 Base. This new integration on Solana allows cbBTC to function as a Solana Program Library (SPL) token, representing both fungible and non-fungible assets.

cbBTC Launch on Solana

With the launch of cbBTC on Solana, it will be integrated into several major DeFi platforms, including Jupiter Exchange, Meteora, Kamino Finance, Jito, Phoenix, Drift Protocol, Raydium, Orca, Save Finance (formerly Solend), Manifest, and Loopscale Labs. This expansion reflects Coinbase's strategy to extend the reach of cbBTC beyond just the Ethereum ecosystem.

Coinbase has emphasized its commitment to transparency and security, stating that cbBTC is backed 1:1 by Bitcoin held in custody, drawing on their decade-long experience in securely managing billions in Bitcoin for institutional clients. The company has also highlighted its roadmap for greater transparency, including proof of reserves.

Growth of Wrapped Bitcoin Tokens

The market for wrapped Bitcoin tokens is rapidly expanding, allowing Bitcoin holders to interact with various networks and DeFi applications without needing to liquidate their assets. These tokens are primarily backed 1:1 by Bitcoin and have gained traction, especially on Ethereum.

The first wrapped Bitcoin token, WBTC, was introduced in 2019 by BitGo and remains the largest, with a supply of approximately 150,000 and a market capitalization of around $11.18 billion. Other notable entries include HBTC from HTX, tBTC by Threshold Network, and renBTC by Ren Protocol. Additionally, Kraken has launched its own wrapped Bitcoin token, kBTC, available on both Ethereum and OP Mainnet.