Crypto exchange Coinbase said Thursday its wrapped Bitcoin product, cbBTC, has launched on Solana following its debut in September as it seeks to broaden its use outside the Ethereum ecosystem.

Representing the first token issued by the San Francisco-based exchange on Solana, Coinbase said that cbBTC will take the form of a so-called SPL token. According to Solana documentation, SPL tokens can be used to represent both fungible and non-fungible assets.

Whether it’s traded on a decentralized exchange or used as collateral in a lending protocol, Coinbase’s cbBTC is expected to be used in decentralized finance (DeFi). Backed 1:1 with Bitcoin, the token effectively allows crypto users to tap Bitcoin on other networks.

As Solana’s DeFI ecosystem competes for crypto users, Coinbase’s product is cementing the presence of one of the industry’s most popular exchanges on the Ethereum competitor. Given the product’s swift rise on Ethereum and Coinbase’s layer-2 scaling solution, Base, the wrapped product could find similar success as a means of using Bitcoin on Solana.

Since it was introduced earlier this year, cbBTC has challenged Bitcoin-based incumbents, such as the BitGo-launch

Go to Source to See Full Article
Author: André Beganski