**Coinbase, America’s leading cryptocurrency exchange, has officially introduced a wrapped version of Bitcoin on Solana’s layer-1 blockchain, aiming to broaden the cryptocurrency's adoption within decentralized finance (DeFi). This pioneering step marks Coinbase's first token issuance on Solana, a testament to its commitment to enhancing Bitcoin accessibility.
This fresh digital asset, cbBTC, is categorized as a Solana Program Library (SPL) token. SPL tokens in Solana can symbolize both fungible and non-fungible assets. Coinbase assures that each unit of cbBTC is backed by actual Bitcoin on a 1:1 basis, facilitating its integration into Solana’s dynamic DeFi ecosystem, allowing for enhanced utility and engagement of Bitcoin.
Prominent DeFi protocols and decentralized exchanges such as Jupiter, Meteora, Kamino Finance, Raydium, Phoenix, Jito, and Drift will support cbBTC. "Our ambition is for Kamino to ascend as a premier cbBTC venue within DeFi," expressed the team behind Solana-based lending and liquidity services.
Coinbase had previously outlined plans for launching cbBTC on Solana at the Breakpoint event in September, revealed by its Singapore country director, Hassan Ahmed. Through this initiative, approximately 135 cbBTC, translating to an estimated $10 million, has been deployed to Solana, as evidenced by blockchain explorer Solscan data.
This move also addresses the void left by soBTC, a former Solana-based wrapped Bitcoin, which struggled during the FTX downfall. Coinbase’s cbBTC now joins other wrapped Bitcoin variants on Solana, including Threshold’s tBTC, Zeus Network’s zBTC, and WBTC accessed via Wormhole, as highlighted by the Solana team.
Since its launch in mid-September, Coinbase’s wrapped Bitcoin has witnessed its market capitalization climb above $1 billion. It stands as a contender to BitGo’s Wrapped Bitcoin (WBTC), which holds an industry standard reputation and boasts a market cap of $11 billion, being accessible across multiple networks.
Remarkably, Solana’s DeFi sector has experienced a robust resurgence in 2024. The total value locked has soared by 250% since the year's onset, reaching $8.25 billion, according to data from DefiLlama. Comparatively, Ethereum’s DeFi recovery trails, although its total value locked has grown by 72%, totaling $60 billion presently.
In direct response to these developments, Solana’s prices have seen an upward trend, with a 3.4% rise after the announcement, reaching $200 in early trading on Nov. 8, as per CoinGecko.