Coinbase has launched a wrapped Bitcoin asset, cbBTC, on the Solana blockchain. The November 7 announcement highlights Coinbase’s intent to provide accessible Bitcoin functionality within Solana’s rapidly growing DeFi ecosystem. Designed as an SPL token, cbBTC is backed 1:1 with Bitcoin, making it possible for holders to use BTC in Solana-native DeFi protocols.
This is Coinbase’s first token offering on Solana, expanding options for Bitcoin integration in decentralized finance and marking another milestone in the platform’s evolution. “We’re thrilled to bring simple BTC access to Solana’s ecosystem,” Coinbase stated on X.
It added that the cbBTC token will be supported on several Solana-based decentralized exchanges, including Jupiter, Raydium, Phoenix, and Drift. The Kamino Finance team, a Solana DeFi protocol, also expressed optimism about cbBTC, noting, “Bitcoin is king, and Kamino aims to be one of the largest cbBTC venues in DeFi.”
cbBTC Fills a Key Market Void Post-FTX
Coinbase’s new cbBTC asset is set to fill a gap left by soBTC, an earlier Solana-based wrapped Bitcoin token that depegged following the collapse of the FTX exchange. Since then, Solana DeFi enthusiasts have sought a reliable Bitcoin asset for their transactions and investments. Now, with Coinbase’s robust backing, cbBTC brings a credible and secure alternative to Solana’s DeFi network. This asset joins other programmable Bitcoin options on the platform, including Threshold’s tBTC and zBTC from Zeus Network.
Coinbase has already allocated 135 cbBTC, valued around $10 million, to the Solana network, according to Solana blockchain data from Solscan. This initial rollout underscores the broader ambition of Coinbase to push deeper into the DeFi landscape, leveraging the growing popularity of Solana, which has witnessed a 250% rise in total value locked (TVL) this year, reaching $8.25 billion according to DefiLlama.
Strong Competition with Wrapped Bitcoin (WBTC)
While cbBTC brings fresh Bitcoin utility to Solana, it enters a market dominated by BitGo’s Wrapped Bitcoin (WBTC), which boasts an $11 billion market cap and multi-network availability. Nevertheless, Coinbase’s introduction of cbBTC could spark greater competition in the market for wrapped Bitcoin assets, especially on newer networks like Solana.
With this launch, Coinbase has not only supported Solana’s DeFi revival but also tapped into the surging demand for secure, interoperable Bitcoin assets across blockchains. Following the announcement, Solana’s native token, SOL, saw a 3.4% uptick, reaching $200 on November 8.
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