On November 19, 2024, Coinbase garnered attention by declaring the removal of Wrapped Bitcoin (wBTC) from its service, set to commence on December 19, 2024. This resolution stems from an ordinary evaluation that ascertained that Bitcoin no longer aligns content with the criteria set forth in the exchange’s registry. The news shocked lots of people in the crypto world because wBTC is really important in the DeFi world, and it has a total value of over $13.5 billion locked in.
This choice is important because it happens at the same time as Coinbase starts its own Bitcoin product, Coinbase Wrapped Bitcoin (cbBTC), which they began in September 2024. Unlike wBTC, which is administered by BitGo and has encountered examination due to governance issues attributed to Justin Sun’s participation, cbBTC is wholly overseen by Coinbase. This transition emphasizes an increasing rivalry in the partitioned Bitcoin realm, with Coinbase advancing cbBTC as a more lucid and encompassing alternative for clients.
The de-listing of wBTC provokes inquiries regarding its prospective role within DeFi frameworks such as MakerDAO and Aave, which have historically depended on wBTC for collateral and liquidity purposes. As the financial landscape transforms, the influence of Coinbase’s ruling will be closely surveilled by investors and users alike.
