- Coinbase launches its first Solana-based wrapped Bitcoin asset, cbBTC, to boost Solana’s DeFi network.
- cbBTC, backed 1:1 with Bitcoin, aims to replace previous Solana-wrapped BTC like soBTC.
- Solana’s DeFi network reaches $8.25 billion in total value locked, marking a 250% recovery in 2024.
Coinbase has introduced a Solana-based wrapped Bitcoin asset, cbBTC, designed to enhance Bitcoin’s use in Solana’s decentralized finance (DeFi) space. Coinbase announced the new asset, its first token issued on Solana, in a Nov. 7 post on X, stating it will serve as a straightforward means for users to leverage Bitcoin in Solana’s DeFi ecosystem.
Coinbase’s cbBTC is a Solana Program Library (SPL) token, allowing it to represent fungible and non-fungible assets on the Solana network. It is backed 1:1 with Bitcoin, offering users a secure Bitcoin option within Solana’s DeFi protocols, including Jupiter, Raydium, Drift, and Kamino Finance.
Source: Coinbase on X
Filling a Gap in Solana’s DeFi Market
This asset launch addresses a notable gap in Solana’s DeFi landscape left by the collapse of soBTC, a previous Solana-wrapped Bitcoin variant that lost its peg amid FTX’s shutdown. Coinbase’s cbBTC joins other wrapped Bitcoin versions on Solana, including tBTC and zBTC, adding diversity to Bitcoin assets within Solana’s DeFi sphere.
As Solana’s DeFi sector grows, Coinbase deployed 135 cbBTC tokens worth approximately $10 million on Solana, according to data from Solscan. Hassan Ahmed, Coinbase’s Singapore country director, introduced cbBTC at the Breakpoint event in September, highlighting Coinbase’s commitment to broadening DeFi access.
Solana’s Growth in the DeFi Sector
Solana’s DeFi ecosystem has made a strong recovery in 2024, with total value locked (TVL) reaching $8.25 billion, reflecting a 250% increase this year, as reported by DefiLlama. In comparison, Ethereum’s DeFi sector has seen a slower rise in TVL, achieving a 72% increase to reach $60 billion.
Meanwhile, Solana’s native token, SOL, gained 3.4% following the cbBTC announcement, peaking at $200 during early trading on Nov. 8, indicating positive market reactions to Coinbase’s launch.
