**Coinbase Enters Wrapped Bitcoin Arena, Quickly Gains Ground**

Coinbase has jumped into the wrapped Bitcoin (BTC) market, and it's making waves. Just a week after launching on Sept. 12, Coinbase's cbBTC has amassed nearly 2,000 tokens, swiftly becoming the third-largest wrapped BTC token. This rapid growth puts it ahead of long-standing tokens like Huobi BTC (HBTC) and renBTC (RENBTC).

For context, BitGo’s wBTC, the first wrapped BTC token, took over a year to reach similar numbers. Currently, wBTC dominates with around 153,000 tokens in circulation.

Wrapped BTC tokens are digital assets that let Bitcoin holders engage in decentralized finance (DeFi) activities. Coinbase's substantial BTC holdings could boost its market share in this space. CryptoQuant notes that Coinbase users hold over 1 million BTC on the platform.

Most cbBTC (64%) is on Ethereum, used in decentralized exchanges like Uniswap. Another 26% is held within Coinbase and its network, Base. This could enhance Coinbase's fee revenue, which saw a 148% increase in the second quarter of 2024.

Meanwhile, BitGo is expanding its wBTC reach, adopting LayerZero’s Omnichain Fungible Token Standard and partnering with BitGlobal to strengthen its presence in Asia.

Stay tuned as the wrapped BTC race heats up!