Nikolas Sargeant
Coinbase has sparked intrigue with a cryptic announcement of "cbBTC" on August 13. The brief teaser on X (formerly Twitter) has led to speculation about Coinbase launching its own wrapped Bitcoin token.
Jesse Pollak, head of Coinbase's layer-2 network Base, added to the speculation. He expressed enthusiasm for Bitcoin and hinted at plans to develop a "massive Bitcoin economy" on the Base network.
The timing is notable, following recent controversy involving BitGo's Wrapped Bitcoin (WBTC). On August 9, BitGo announced plans to transfer WBTC control to a joint venture including Justin Sun's Tron ecosystem, raising concerns in the DeFi community.
Some DeFi members called for reduced WBTC support. Block Analitica Labs proposed that MakerDAO close new WBTC debts and prevent further borrowing against WBTC collateral.
BitGO CEO Matt Belshe attempted to allay fears, stating the controversy was more about Sun's reputation than security risks. Sun also responded, emphasizing no changes to WBTC and his lack of direct access to funds.
As the crypto community eagerly awaits more details about Coinbase's cbBTC, the timing of this announcement highlights the ongoing discussions and potential shifts in the wrapped Bitcoin landscape.
