Coinbase to delist trading of WBTC in December

As a seasoned crypto investor with over a decade of experience navigating the volatile and ever-evolving landscape of digital assets, I find myself intrigued by Coinbase’s decision to delist Wrapped Bitcoin (WBTC) from its platforms.


On December 19, 2024, Coinbase has indicated that they will no longer support trading of Wrapped Bitcoin (WBTC) on all their platforms, which includes both Coinbase.com and Coinbase Prime.

The choice is made based on a standard assessment of assets and will transition WBTC trading to a “limit-only” model. However, users are still able to pull out their WBTC from the platform following the delisting, as Coinbase explained in a statement on date X.

We frequently check the coins listed on our platform to make sure they adhere to our criteria. Our latest assessment indicates that trading for wBTC will be halted on December 19, 2024, approximately at noon Eastern Time.

— Coinbase Assets 🛡️ (@CoinbaseAssets) November 19, 2024

2019 saw the introduction of WBTC, which facilitates the movement of Bitcoin’s liquidity into the decentralized finance sector by converting Bitcoin (BTC) into tokens. Each token matches the value of one Bitcoin and has a market capitalization surpassing $13.6 billion.

BitGo, its primary custodian, has traditionally maintained the underlying Bitcoin reserves.

BitGo controversy 

As a researcher, I’ve noticed that recent changes within the governance structure of the WBTC protocol have ignited some apprehension across the industry. Specifically, in August, BitGo unveiled a strategic partnership with BiTGlobal, a Hong Kong-based trust company associated with the founder of TRON, Justin Sun.

Through this collaboration that focuses on expanding geographic dispersal, there’s been a closer examination of Sun’s expanding sway within the protocol. Given concerns about possible governance hazards, crypto initiatives are already modifying their dealings with Wrapped Bitcoin (WBTC).

The action taken by Coinbase aligns with the expansion of their own tokenized Bitcoin product, cbBTC, that they introduced earlier this year. This product, which currently has a $1.5 billion market capitalization, is making its presence felt in the wrapped Bitcoin market as it gains popularity and competes against other similar offerings.

WBTC’s response 

The group responsible for WBTC voiced shock and dismay about Coinbase’s choice to remove the asset from their platform on date X, underscoring their dedication to adhering to regulations, maintaining openness, and upholding the principles of decentralization.

The WBTC team emphasized that their product stands out due to its robust governance, safe storage procedures, and commitment to regulatory standards. They underlined the fact that WBTC is currently the most decentralized option for wrapping Bitcoin available in the market.

Apologetically and astonished by Coinbase’s choice to remove Wrapped Bitcoin (WBTC) from its platform, we, as the primary developers of WBTC, have consistently prioritized delivering a compliant, transparent, and decentralized BTC tokenization solution to our community.

— WBTC (@WrappedBTC) November 19, 2024

In an effort to change Coinbase’s mind, the WBTC team suggested they could offer more details or explanations to alleviate any worries or doubts.

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2024-11-19 21:55