Coinbase intends to launch its wrapped Bitcoin product, cbBTC, on the Solana blockchain to enhance Bitcoin accessibility for customers.
The declaration was issued by Hassan Ahmed, Coinbase’s Country Director for Singapore, during the Solana Breakpoint conference on September 21.
cbBTC, collateralized 1:1 by Coinbase’s Bitcoin reserves, is intended for programmable blockchains such as Base and Ethereum. Notwithstanding its success, cbBTC remains subordinate to BitGo’s WBTC, which commands 96.6% of the wrapped Bitcoin market on Ethereum. Coinbase recognizes the potential for growing cbBTC to Solana and is assured of its growth trajectory.
Critics, like Tron founder Justin Sun, raise concerns regarding the risks associated with cbBTC’s openness. Coinbase’s CEO, Brian Armstrong, has informed the community that the Bitcoin supporting cbBTC is securely maintained by a centralized custodian.
Coinbase’s initiative coincides with other platforms, including Stacks, that are also seeking to integrate Bitcoin into Solana. Stacks seeks to provide answers to the issues associated with wrapped Bitcoin items, including elevated fees throughout the wrapping and unwrapping processes.
Despite competition from WBTC and other alternatives such as sBTC, Coinbase has optimism that its expansion to Solana will reinforce cbBTC’s standing in the increasing wrapped Bitcoin industry.
