Coinbase Wrapped BTC (cbBTC) is an ERC-20 token backed by bitcoins stored in Coinbase's 1:1 vaults. The token aims to increase the utility and financial freedom of bitcoin by allowing Coinbase customers to seamlessly access decentralized financial applications (DeFi) with their existing bitcoins.
At the time of the service's launch, cbBTC was supported on Base and Ethereum, but #Coinbase has announced its intention to expand to other #blockchain networks. The planned integration with #Solana will enable this expansion strategy.
the migration of cbBTC to Solana could increase DeFi activity on the high-performance blockchain. Known for its high transaction speeds and low fees, Solana could be an attractive environment for #bitcoin holders looking to participate in the DeFi protocol.
For Coinbase users, cbBTC acts as a bridge between bitcoin and other blockchain ecosystems. When a user sends BTC to a supported blockchain address, it is automatically converted to cbBTC at a 1:1 ratio. Similarly, the cbBTC received is converted back to BTC in the user's Coinbase account.
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