3 Coinbase Wrapped BTC (cbBTC) Facts in Extending Bitcoin Utility to Multi-Chain & DeFi

Jakarta, Pintu News – Coinbase Wrapped BTC (cbBTC) comes as an innovative solution that allows users to utilize their Bitcoin (BTC) in the world of crypto and DeFi cryptocurrencies without having to offload the original asset. With one-to-one support of BTC stored by Coinbase, cbBTC allows interaction across blockchains such as Ethereum, Base, and Solana. Let’s take a look at three key points that make cbBTC an attractive asset in the DeFi space today.

1. Trusted and Guaranteed 1:1 by Coinbase

cbBTC is an ERC-20 token fully backed by Bitcoin (BTC) that is securely held in a Coinbase custodial account, with a 1:1 guarantee ratio. Coinbase has over a decade of reputation as a secure digital asset custodian for institutions and global users.

This transparency is reinforced through Proof of Reserves which is part of Coinbase’s public roadmap. This makes cbBTC an attractive option for users who want to access DeFi without worrying about the security of BTC reserves.

Also Read: A Year of DCA XRP: From Rp12 Million to Rp29.78 Million, Here’s the Journey

2. Extending Bitcoin Utility to Multi-Chain & DeFi

One of the major drawbacks of Bitcoin is the lack of cross-blockchain support and interaction with smart contracts. cbBTC addresses this by being a compatible representation of BTC on networks such as Ethereum, Base, Solana, and Arbitrum.

This allows users to use BTC as collateral, liquidity provision, or to lend through DeFi applications such as Aave, Curve, Compound, Morpho, and others. Thus, users can earn yield or utilize modern financial tools without giving up their assets.

3. Practical, Fast, and Cost-Efficient Solution

Coinbase designed cbBTC to be easy to use: sending BTC to an Ethereum, Base, or Solana address will automatically convert it to cbBTC 1:1, and vice versa if sent back to a Coinbase account.

There is no specific order book or trading pairs on the Coinbase platform, making the process seamless and ideal for both novice and experienced users. In addition, with a faster blockchain and low fees compared to Binance BTC offices, cbBTC provides a more efficient experience in the DeFi ecosystem.

With guaranteed 1:1 security, cross-blockchain compatibility, and ease of use, Coinbase Wrapped BTC (cbBTC) is an important bridge to Bitcoin adoption in the DeFi world. However, users need to consider security, transparency, and regulatory factors before utilizing this feature. cbBTC has so far paved a new way in the integration of digital assets into open financial platforms.

Also Read: 7 Crypto Predictions for 2030

Follow us on Google News to get the latest information about the world of crypto and blockchain technology. Check today‘ s bitcoin price, today’s solana price, pepe coin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app through Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinbase. Coinbase Wrapped BTC (cbBTC) is now live. Accessed August 11, 2025.