Table of Contents
- Coinbase Begins Phasing Out wBTC
- Coinbase Launches Its Own Version of Wrapped Bitcoin
Coinbase will suspend Wrapped Bitcoin (WBTC) trading on December 19, 2024. The exchange cited undisclosed failures to meet its listing standards.
Coinbase announced it would suspend trading of Wrapped Bitcoin (wBTC) in December due to undisclosed failures to meet the exchange’s listing standards.
Coinbase Begins Phasing Out wBTC
Cryptocurrency exchange Coinbase (COIN) announced it would delist and suspend Wrapped Bitcoin (wBTC) trading over alleged failures to meet its listing standards. In a November 19 X post, the exchange said:
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on December 19, 2024, on or around 12pm ET.
— Coinbase Assets (@CoinbaseAssets) November 19, 2024
The exchange has already begun phasing out wBTC, explaining it is in the process of removing wBTC from its platform due to an issue with the token under Coinbase’s listing standards. Coinbase explained that it had already discontinued market trading of wBTC, only facilitating trades in limit orders. In a thread, the exchange said:
“Trading will be suspended on Coinbase.com (Simple and Advanced Trade), Coinbase Exchange and Coinbase Prime. Your wBTC funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time.”
Coinbase Launches Its Own Version of Wrapped Bitcoin
Coinbase’s decision to remove wBTC from its platform comes shortly after the exchange announced its own version of wrapped Bitcoin, called cbBTC. cbBTC exists on the exchange’s blockchain, Base. According to the exchange, “Coinbase is pioneering a new era for DeFi with cbBTC,” backed by the exchange’s “10+ year record of securely custodying billion in Bitcoin for institutions and customers.”
On its website, Coinbase detailed how cbBTC works, explaining:
“Coinbase customers in select geos can use the send & receive feature to seamlessly move their BTC on and offchain. When users send their BTC from Coinbase to Base, Solana, or Ethereum, it will automatically be converted 1:1 to cbBTC. When users receive cbBTC in their Coinbase accounts, it will be converted 1:1 from cbBTC to BTC. Notably, cbBTC will not have a separate order book or trading pair on Coinbase.”
Wrapped Bitcoin, or wBTC, is a token that represents Bitcoin on other blockchains, such as Ethereum. wBTC is offered by BitGo, or in other words, is the cryptocurrency custodian holding the Bitcoin backing wBTC.
wBTC has recently faced significant controversy after BitGo announced it was entering into a joint venture with BiT Global, a custodian partially owned by Justin Sun. On August 9, BitGo agreed to grant the Hong Kong-based BiT Global partial control of the multi-sig wallet that holds the custodied Bitcoin. Many have expressed concern over Sun’s involvement, including Threshold, a rival Bitcoin wrapper. Threshold commented on Sun’s involvement in the joint venture, stating:
“This announcement has proven controversial due to the involvement of Justin Sun, with many in the ecosystem expressing concern over his ‘affiliated projects show worrying signs of possible misappropriation’ of collateral.”
Justin Sun is TRON’s founder and owns the crypto exchange Poloniex. In 2023, the US Securities and Exchange Commission (SEC) sued Sun, alleging that he and his companies engaged in fraudulent activity to inflate the price of TRON (TRX) and BTT tokens and engaged in the sale of unregistered securities. Weeks after the charges against Sun and his companies, crypto exchange Binance delisted TRON (TRX).
In a recent X Spaces discussion, BitGo’s CEO, Mike Belshe, assured the community that Sun has minimal operational control over BiT Global. BiT Global is structured in such a way that no individual has more than 20% ownership, and the keys are split between multiple parties.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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