30s Summary

Coinbase has introduced cbBTC, linking Bitcoin to the Solana blockchain, in hopes of stimulating DeFi activity on Solana. This development is significant as it fills the gap left by the collapse of company FTX in Solana-based decentralized finance. Coinbase’s cbBTC allows traders to interchange between the Bitcoin-backed token and their Solana wallets conveniently. Expectations are high for cbBTC, particularly as Bitcoin reaches record highs. Coinbase has nearly $10 million worth of cbBTC ready for deployment into Solana DeFi, and $500,000 of cbBTC is already in use in trading pools.

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Check out this cool news about Coinbase and Bitcoin. Coinbase has come up with cbBTC, a way to link Bitcoin to the Solana blockchain.

You know how Bitcoin’s a big deal for trading, lending and borrowing on central crypto exchanges? Well, it’s a bit trickier in DeFi, but some reckon Coinbase’s move might boost DeFi activity on Solana.

This move is a big deal because a couple of years back when company FTX collapsed, it left a huge gap in Solana-based decentralized finance. Now, Coinbase is hoping to fill this gap with cbBTC.

The cool thing about cbBTC is that it lets traders switch between the Bitcoin-backed token and their Solana wallets super easily. Some people are hopeful that cbBTC will be just as good as gold across the entire ecosystem.

There’s a high expectation that cbBTC will be well-received, particularly now that Bitcoin is hitting record highs after Donald Trump’s election.

Since FTX’s fraudulent exchange died in November 2022, Solana DeFi hasn’t had a straightforward Bitcoin alternative. But now, Coinbase’s cbBTC on Solana could change this and improve things for Solana protocols.

InfraRay, a contributor to prominent Solana-based decentralized exchange Raydium, is positive about the change, saying it “reduces the risk surface by half.”

He also suggests that the change could lead to a surge of Bitcoin liquidity on-chain, which could boost usage in many different DeFi protocols.

Of course, Coinbase will only succeed if it can make cbBTC the standard for Bitcoin on Solana. Other companies have tried and failed this before.

However, Coinbase seems to be doing well so far with nearly $10 million worth of cbBTC ready to deploy into Solana DeFi, according to blockchain data. And, an additional $500,000 of cbBTC is already being used in trading pools on Meteora and Orca and in a reserve on trading protocol Kamino.

Marius Ciubotariu, co-founder of Kamino, said, “I think and hope it’s gonna be big. There’s no reason for most BTC DeFi stuff to happen on Ethereum.”

Previously, Coinbase hasn’t participated much in Solana DeFi. CbBTC is its first token issued natively on the Solana blockchain. Usually, the exchange is more involved in the Ethereum world, especially through its own layer-2 network, Base.

But things are changing. A spokesperson for Coinbase said, “Unlocking BTC utility for our customers across the on-chain economy is at the heart of our decision to launch cbBTC. Expanding support to Solana and potentially other chains gives our customers more options and aligns with our overall strategy of bringing billions of users on-chain.”