Key Points
- Coinbase has launched Coinbase Wrapped Bitcoin (cbBTC) on the Solana blockchain.
- Solana’s value has surged, closing in on its all-time high.
Coinbase has introduced its Wrapped Bitcoin (cbBTC) on the Solana blockchain.
The wrapped asset, an SPL token, is fully backed on a 1:1 ratio by Bitcoin and is securely held in Coinbase’s custody.
cbBTC’s Integration into Solana
Coinbase’s move to introduce cbBTC to the Solana blockchain comes after its announcement at the Solana Breakpoint event in Singapore in late September.
The Bitcoin-backed wrapped token is expected to play a significant role in Solana’s decentralized finance (DeFi) landscape, providing new opportunities for liquidity and collateral in lending protocols.
Upon its launch, cbBTC was supported by several prominent Solana-based DeFi platforms.
Solana’s Total Value Locked (TVL) has increased by 385% YTD, standing at $6.8 billion at the time of the report.
cbBTC’s $1B Milestone
The cbBTC token was initially launched on Ethereum and Coinbase’s Layer 2 network, Base.
The token reached a $1 billion market cap within nine weeks, a milestone that came before its Solana launch.
Despite being a new player, cbBTC has secured its position as the sixth-largest wrapped asset, according to CoinMarketCap.
Meanwhile, Solana has seen a significant rally over the last seven days, triggered by Bitcoin’s bull run.
At the time of the report, Solana exchanged hands at $198, around 23% shy of its all-time high.
The coin’s market capitalization also rose to $93.53 billion.
The integration of cbBTC and other innovative assets continues to strengthen Solana’s position in the crypto market.