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    Coinbase to Discontinue Wrapped Bitcoin Trading by 2024, Introduces Own Version Amid Transparency Concerns

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    Coinbase has announced it will end trading of Wrapped Bitcoin (WBTC) in December 2024, due to the token not meeting expected standards. The platform has already stopped market trading for WBTC, only handling limit orders presently. Despite the move causing dissension among some users, Coinbase assures that account holders will still have access to their WBTC funds, including withdrawal capabilities. Coinbase has launched its variant called Coinbase Wrapped BTC (cbBTC), which attracted around $1.4 billion in total value locked. Amid criticisms on transparency, Coinbase plans to add verifiable proof of reserves to cbBTC.

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    Hey there, have you heard the latest from Coinbase? They’ve announced they’ll be stopping the trading of Wrapped Bitcoin (WBTC) in December. The exact reasoning is a bit hush-hush, but it appears that WBTC hasn’t lived up to Coinbase’s standards. In fact, they made the announcement on November 19 and said trading would stop on December 19, 2024, at about noon Eastern Time.

    To add to this, Coinbase has already ceased market trading of WBTC, they’re just handling trades as limit orders now. In case you’re not in the know, Bitcoin wrappers like WBTC are just tokens that act as Bitcoin, but they live on other blockchain networks.

    Coinbase wants to reassure everyone that although trading will end, you’ll still have access to your WBTC funds. You even have the ability to withdraw your funds at any time.

    This move hasn’t gone down well with everyone. BitGo, who hold WBTC’s Bitcoin backing, found themselves part of a controversy when they decided to let the Hong Kong-based crypto exchange BiT Global to have some control over the wallet containing the Bitcoin.

    Despite all the controversy, WBTC is still a favourite among Bitcoin wrappers. It clocks up a total value locked (TVL) of around $13 billion.

    The folks representing Wrapped BTC weren’t too cheerful about Coinbase’s decision to remove WBTC. They said on November 19 that they’re disappointed and shocked. They’ve also requested that Coinbase rethink their decision and continue supporting WBTC trading.

    Coinbase did launch their own version of WBTC, cleverly called Coinbase Wrapped BTC (cbBTC) back on September 12. It’s turned out to be a hit, with a TVL of around $1.4 billion.

    The murky waters of crypto exchanges have been turbulent for Coinbase recently. They faced criticism back in September, when they were left trailing by other Bitcoin wrappers regarding transparency. Then they were hit with unfounded rumours suggesting they were issuing unbacked Bitcoin IOUs to BlackRock, a crypto exchange-traded fund (ETF) sponsor.

    To deal with these criticisms, Coinbase has plans to include verifiable proof of reserves to cbBTC. They’ll be working on that this year. So despite the drama, Coinbase is still pushing ahead.

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