{"id":"coinbase-wrapped-btc-cbbtc","title":"Coinbase Wrapped BTC (cbBTC)","content":"**Coinbase Wrapped BTC (cbBTC)** is a wrapped [Bitcoin](https://iq.wiki/wiki/bitcoin) token issued by [Coinbase](https://iq.wiki/wiki/coinbase) that maintains a 1:1 backing with [Bitcoin (BTC)](https://iq.wiki/wiki/bitcoin-btc) held in secure custody. This digital asset enables users to utilize their [Bitcoin](https://iq.wiki/wiki/bitcoin) holdings in [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) applications while maintaining the ability to redeem the underlying [BTC](https://iq.wiki/wiki/bitcoin-btc) through [Coinbase](https://iq.wiki/wiki/coinbase). [\\[1\\]](#cite-id-lJbGDFZRq1) [\\[2\\]](#cite-id-KNtMlF8HnY)\n\n## Overview\n\ncbBTC is a wrapped [Bitcoin](https://iq.wiki/wiki/bitcoin) token issued by [Coinbase](https://iq.wiki/wiki/coinbase), backed 1:1 by [BTC](https://iq.wiki/wiki/bitcoin-btc) held in custody, including [cold storage](https://iq.wiki/wiki/cold-wallet). It allows users to convert [BTC](https://iq.wiki/wiki/bitcoin-btc) into a transferable token that can be redeemed for the underlying asset by depositing it into their [Coinbase](https://iq.wiki/wiki/coinbase) accounts. Designed for compatibility with [DeFi](https://iq.wiki/wiki/defi) applications, cbBTC enables users to provide [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity), use it as collateral for borrowing, or utilize it for payments. Wrapped assets like cbBTC increase [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) and expand onchain financial use cases.\n\ncbBTC maintains a 1:1 backing with [BTC](https://iq.wiki/wiki/bitcoin-btc) through a [minting](https://iq.wiki/wiki/minting) and [burning](https://iq.wiki/wiki/token-burn) process that ensures supply matches reserves. When users withdraw [BTC](https://iq.wiki/wiki/bitcoin-btc) from [Coinbase](https://iq.wiki/wiki/coinbase) to [Ethereum](https://iq.wiki/wiki/ethereum), [Base](https://iq.wiki/wiki/base), or [Solana](https://iq.wiki/wiki/solana), an equivalent amount of cbBTC is [minted](https://iq.wiki/wiki/minting) and sent to their wallet. When cbBTC is deposited back into a [Coinbase](https://iq.wiki/wiki/coinbase) address, it is [burned](https://iq.wiki/wiki/token-burn), and the corresponding [BTC](https://iq.wiki/wiki/bitcoin-btc) is released to the user’s [Bitcoin](https://iq.wiki/wiki/bitcoin) account.\n\nThis process is managed on [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm) chains through audited [smart contracts](https://iq.wiki/wiki/smart-contract) that regulate [minting](https://iq.wiki/wiki/minting) and [burning](https://iq.wiki/wiki/token-burn). The [smart contract](https://iq.wiki/wiki/smart-contract) structure is based on [Coinbase’s](https://iq.wiki/wiki/coinbase) wrapped token framework, which is also used for [cbETH](https://iq.wiki/wiki/coinbase-wrapped-staked-eth-cbeth). It is open-source on GitHub. Key contract management roles include administrators, minters, and security functions, requiring multi-party approval. On [Solana](https://iq.wiki/wiki/solana), cbBTC operates as an [SPL](https://iq.wiki/wiki/spl-20-solana-program-library-20) token with similar controls over [minting](https://iq.wiki/wiki/minting), freezing, and updating metadata. [\\[3\\]](#cite-id-fRAbC4eD7G) [\\[4\\]](#cite-id-Rd6qoS0WmQ)\n\n![](https://ipfs.everipedia.org/ipfs/QmWHvaJPTtfBdgyNyyRFp4R4kj5jNHpNnvXbYWruTtciM8)\n\n### Security & Compliance\n\n[Coinbase](https://iq.wiki/wiki/coinbase) secures the [BTC](https://iq.wiki/wiki/bitcoin-btc) backing cbBTC through wallet infrastructure, regular audits, and monitoring systems. [Smart contracts](https://iq.wiki/wiki/smart-contract) involved in the [minting](https://iq.wiki/wiki/minting) and redemption process undergo third-party security audits, including by [OpenZeppelin](https://iq.wiki/wiki/openzeppelin). The contract framework used for cbBTC is based on the audited [cbETH](https://iq.wiki/wiki/coinbase-wrapped-staked-eth-cbeth) [Solidity](https://iq.wiki/wiki/solidity) contract, with no material changes.\n\nThe [BTC](https://iq.wiki/wiki/bitcoin-btc) reserves backing cbBTC are held 1:1 at [Coinbase](https://iq.wiki/wiki/coinbase), with redemption rights assigned to cbBTC holders. Custodial services follow [Coinbase’s](https://iq.wiki/wiki/coinbase) user agreement and utilize hot and [cold wallets](https://iq.wiki/wiki/cold-wallet). [Cold wallet](https://iq.wiki/wiki/cold-wallet) private keys are stored in encrypted, secured facilities in the U.S. and Europe and require multi-party authorization for access. Internal audits verify private key management, and [Coinbase](https://iq.wiki/wiki/coinbase) does not use sub-custodians for asset storage.\n\ncbBTC operates within regulatory frameworks, adhering to [Anti-Money Laundering (AML)](https://iq.wiki/wiki/anti-money-laundering-aml) and [Know Your Customer (KYC)](https://iq.wiki/wiki/know-your-customer-kyc) requirements. [Coinbase](https://iq.wiki/wiki/coinbase) holds licenses for [crypto](https://iq.wiki/wiki/cryptocurrency) custody and trading across multiple jurisdictions, including the U.S., Germany, Singapore, Canada, and Bermuda, and is registered as a Virtual Asset Service Provider in several countries. [\\[4\\]](#cite-id-Rd6qoS0WmQ)\n\n## Bit Global Sues Coinbase\n\nIn a recent legal case, [Coinbase](https://iq.wiki/wiki/coinbase) has been sued by Bit Global, a company linked to [Justin Sun](https://iq.wiki/wiki/justin-sun), over the delisting of Wrapped Bitcoin (WBTC). Bit Global alleges that Coinbase's decision to delist [WBTC](https://iq.wiki/wiki/wrapped-bitcoin-wbtc) was strategically aimed at promoting its own wrapped Bitcoin product, cbBTC. This lawsuit highlights the competitive tensions in the [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) market, where exchanges and platforms vie for dominance in offering wrapped token solutions. The case underscores the complexities and competitive nature of the crypto industry, particularly in the realm of wrapped assets, which are crucial for enabling liquidity and [DeFi](https://iq.wiki/wiki/defi) applications.\n\nAccording to the lawsuit filed on December 13, 2024, in the U.S. District Court for the Northern District of California, BiT Global Digital Limited accuses Coinbase of anti-competitive behavior for delisting [wBTC](https://iq.wiki/wiki/wrapped-bitcoin-wbtc) shortly after announcing cbBTC. BiT Global claims this move effectively prevents competition and forces users to adopt cbBTC, violating federal and state laws. The complaint emphasizes [Coinbase's](https://iq.wiki/wiki/coinbase) market dominance and alleges a strategy to replace competitors' [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency) with its own versions, starting with wBTC.\n\nBiT Global also suggests that [Coinbase](https://iq.wiki/wiki/coinbase) is subsidizing its [Ethereum](https://iq.wiki/wiki/ethereum) [Layer 2](https://iq.wiki/wiki/layer-2) network, [Base](https://iq.wiki/wiki/base), to boost cbBTC adoption by reducing or eliminating fees, a practice they believe will cease once competition is diminished. The company is seeking a judgment against Coinbase's actions, demanding financial penalties, including punitive damages exceeding one billion dollars to reflect [wBTC's](https://iq.wiki/wiki/wrapped-bitcoin-wbtc) loss in value, and the disgorgement of profits derived from these business practices.\n\n[Coinbase's](https://iq.wiki/wiki/coinbase) official statement claimed that [wBTC](https://iq.wiki/wiki/wrapped-bitcoin-wbtc) no longer meets its listing standards, but BiT Global argues that no specific issues were raised prior to the delisting announcement and that Coinbase has virtually no standards, pointing to the listing of [memecoins](https://iq.wiki/wiki/memecoins) like [PEPE](https://iq.wiki/wiki/pepe-cryptocurrency), [Dogwifhat](https://iq.wiki/wiki/dogwifhat-wif), and Mog Coin. The delisting of wBTC has raised concerns about the precedent it sets for the [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) space, particularly regarding the ability of large exchanges to delist cryptocurrencies in favor of their own products.\n\nThe context of this lawsuit also involves [Justin Sun's](https://iq.wiki/wiki/justin-sun) connection to BiT Global and the concerns surrounding his involvement in the [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) space, including allegations of market manipulation and the use of the [TRON](https://iq.wiki/wiki/tron) [blockchain](https://iq.wiki/wiki/blockchain) by Islamic terror groups. These factors add complexity to the legal battle and highlight the broader regulatory and ethical considerations in the cryptocurrency industry. [\\[1\\]](#cite-id-lJbGDFZRq1) [\\[6\\]](#cite-id-yr3yE7GESk) [\\[7\\]](#cite-id-BkKULGVk3V) [\\[8\\]](#cite-id-ErIzuWwJ6X)\n\n## Expansion to Solana and DeFi Integrations\n\n[Coinbase](https://iq.wiki/wiki/coinbase) has expanded its wrapped Bitcoin product, cbBTC, to the [Solana](https://iq.wiki/wiki/solana) [blockchain](https://iq.wiki/wiki/blockchain), enhancing its integration with [decentralized finance](https://iq.wiki/wiki/defi) (DeFi) applications. This move allows cbBTC to be utilized within Solana's rapidly growing DeFi ecosystem, offering users the ability to engage in various financial activities such as lending, borrowing, and trading with lower transaction costs and faster processing times compared to other blockchains.\n\nThe integration of cbBTC on [Solana](https://iq.wiki/wiki/solana) is part of [Coinbase's](https://iq.wiki/wiki/coinbase) broader strategy to increase the utility and accessibility of its wrapped Bitcoin product across multiple [blockchain](https://iq.wiki/wiki/blockchain) platforms. By leveraging Solana's high throughput and low latency, Coinbase aims to provide a more efficient and scalable solution for users looking to utilize [Bitcoin](https://iq.wiki/wiki/bitcoin) in [DeFi](https://iq.wiki/wiki/defi) applications.\n\nAdditionally, cbBTC is now available on Coinbase's own [Layer 2](https://iq.wiki/wiki/layer-2) network, [Base](https://iq.wiki/wiki/base), as well as on [Ethereum](https://iq.wiki/wiki/ethereum), further broadening its reach and functionality. These integrations are designed to offer users more flexibility and options for using [Bitcoin](https://iq.wiki/wiki/bitcoin) in a decentralized manner, aligning with the growing demand for cross-chain compatibility and interoperability in the [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) space.\n\nThe launch of cbBTC on these platforms underscores [Coinbase's](https://iq.wiki/wiki/coinbase) commitment to expanding its [DeFi](https://iq.wiki/wiki/defi) offerings and enhancing the overall user experience by providing seamless access to [Bitcoin](https://iq.wiki/wiki/bitcoin)-backed assets across different [blockchain](https://iq.wiki/wiki/blockchain) networks. [\\[9\\]](#cite-id-Decrypt) [\\[10\\]](#cite-id-CoinMarketCap) [\\[11\\]](#cite-id-CryptoBriefing) [\\[12\\] ](#cite-id-UnchainedCrypto)[\\[15\\]](#cite-id-rlSsOsCzXl)","summary":"Coinbase Wrapped BTC (cbBTC) is a wrapped Bitcoin token by Coinbase, backed 1:1 by BTC, enabling onchain transfers and DeFi interactions. Users can redeem BTC by depositing cbBTC into Coinbase accounts, facilitating liquidity and financial utility.","images":[{"id":"QmfB35HfpFpZES5mKUK4GFRBw9SVSFKHR2F83mYDoqrvyn","type":"image/jpeg, 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| Coinbase\",\"timestamp\":1741638050803,\"url\":\"https://www.coinbase.com/en-ca/cbbtc\"},{\"id\":\"KNtMlF8HnY\",\"description\":\"cbBTC | CoinGecko\",\"timestamp\":1741638457094,\"url\":\"https://www.coingecko.com/en/coins/coinbase-wrapped-btc\"},{\"id\":\"fRAbC4eD7G\",\"description\":\"ccBTC | Koinly\",\"timestamp\":1741638528086,\"url\":\"https://koinly.io/blog/coinbase-cbbtc/\"},{\"id\":\"Rd6qoS0WmQ\",\"description\":\"cbBTC Whitepaper\",\"timestamp\":1741638599175,\"url\":\"https://coinbase.bynder.com/m/1303c2f4d78fc966/original/cbBTC-White-Paper.pdf\"},{\"id\":\"yr3yE7GESk\",\"description\":\"Coinbase sued by Justin Sun-linked BiT Global over wBTC delisting\\n\",\"timestamp\":1747863285064,\"url\":\"https://coingeek.com/coinbase-sued-by-justin-sun-linked-bit-global-over-wbtc-delisting/\"},{\"id\":\"BkKULGVk3V\",\"description\":\"BiT Global Sues Coinbase for Planning to Delist Wrapped Bitcoin in Favor of cbBTC\\n\",\"timestamp\":1747863295664,\"url\":\"https://decrypt.co/296540/bit-global-sues-coinbase-delisting-wrapped-bitcoin\"},{\"id\":\"ErIzuWwJ6X\",\"description\":\"BiT Global Accuses Coinbase of Delisting wBTC To Propel Rival cbBTC in Heated Crypto Battle\\n\",\"timestamp\":1747863306780,\"url\":\"https://coinmarketcap.com/academy/article/bit-global-accuses-coinbase-of-delisting-wbtc-to-propel-rival-cbbtc-in-heated-crypto-battle\"},{\"id\":\"AVAqenUtr4\",\"url\":\"https://coinmarketcap.com/academy/article/coinbase-unveils-wrapped-bitcoin-cbbtc-with-solana-defi-integrations\",\"description\":\"News about Coinbase unveiling cbBTC with Solana DeFi integrations\",\"timestamp\":1747863947517},{\"id\":\"NtWclSMDRX\",\"url\":\"https://cryptobriefing.com/coinbase-cbbtc-launch/\",\"description\":\"News about Coinbase debuting wrapped Bitcoin token on Ethereum and Base\",\"timestamp\":1747863947517},{\"id\":\"TSmgNBqPBW\",\"url\":\"https://unchainedcrypto.com/coinbases-wrapped-bitcoin-product-cbbtc-launches-on-base-and-ethereum/\",\"description\":\"News about Coinbase’s Wrapped Bitcoin Product cbBTC Launches on Base and Ethereum\",\"timestamp\":1747863947517},{\"id\":\"aF1X9uq0Lk\",\"url\":\"https://decrypt.co/290731/coinbase-brings-its-wrapped-bitcoin-to-solana\",\"description\":\"News article about Coinbase bringing its wrapped Bitcoin to Solana\",\"timestamp\":1747863947517},{\"id\":\"Gkzw0WN5Gg\",\"url\":\"https://www.coindesk.com/markets/2024/12/14/bit-global-sues-coinbase-over-wbtc-delisting-cbbtc-promotion/\",\"description\":\"News article about Bit Global suing Coinbase over WBTC delisting\",\"timestamp\":1747863947517},{\"id\":\"cjKXAsErtM\",\"url\":\"https://www.theblock.co/post/267420/bit-global-sues-coinbase-alleging-anti-competitive-behavior\",\"description\":\"News article about Bit Global suing Coinbase\",\"timestamp\":1747863947517},{\"id\":\"eI7d1k6hmA\",\"url\":\"https://decrypt.co/308818/coinbase-sued-by-justin-sun-linked-firm-over-bitcoin-pegged-token\",\"description\":\"News article about Coinbase being sued by Justin Sun-Linked Firm\",\"timestamp\":1747863947517},{\"id\":\"rlSsOsCzXl\",\"description\":\"Coinbase Unveils Wrapped Bitcoin cbBTC With Solana DeFi Integrations\\n\",\"timestamp\":1747864004648,\"url\":\"https://coinmarketcap.com/academy/article/coinbase-unveils-wrapped-bitcoin-cbbtc-with-solana-defi-integrations\"}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmZzXnsCfoQZjWwdgvvQQX9BG93UZq1HbrhSnyEkLcPyqY\""},{"id":"commit-message","value":"\"Add founders and fix citation formatting for cbBTC article.\""},{"id":"previous_cid","value":"QmZzXnsCfoQZjWwdgvvQQX9BG93UZq1HbrhSnyEkLcPyqY"}],"events":[{"id":"cd4f57ea-eca9-4efb-97d8-f50d793258e4","date":"2024-09","title":"Launched by Coinbase","type":"CREATED","description":"Coinbase Wrapped BTC (cbBTC) was launched by Coinbase on September 12, 2024","link":"https://messari.io/project/coinbase-wrapped-btc","multiDateStart":null,"multiDateEnd":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["coinbase"],"founders":["fred-ehrsam","brian-armstrong"],"speakers":[]}}