America’s biggest crypto exchange Coinbase has launched its wrapped Bitcoin token—first teased in August—at a time when the leading version of the token is stirring lots of controversy in the fast-moving space.
The idea with the new token—called Coinbase Wrapped BTC, or cbBTC—is that traders can use their Bitcoin on Ethereum: It runs on the crypto network behind ETH, the second-biggest cryptocurrency by market cap, but is backed 1:1 with Bitcoin.
Why? So traders can use their Bitcoin on decentralized finance (DeFi) apps, mainly.
“By bringing assets across more chains, wrapped assets like cbBTC help build a more efficient, interconnected, and expansive financial ecosystem,” the San Francisco-based exchange said in a statement.
DeFi is the space in crypto that wants to replace things like banks and lenders via automated, decentralized apps. Think taking out a loan—but with no middleman, annoying questionnaires, or…
