Coinbase to Delist Wrapped Bitcoin (WBTC) on Dec 19, 2024

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As a seasoned researcher who has closely followed the crypto market for years, I find Coinbase’s decision to delist wrapped Bitcoin (WBTC) intriguing. Having witnessed the rise and fall of numerous digital assets, it seems that the exchange is strategically positioning itself in the rapidly evolving DeFi space with its own wrapped Bitcoin token, Coinbase Wrapped BTC (cbBTC).

Coinbase has revealed intentions to stop offering assistance for Wrapped Bitcoin (WBTC) on all its services, such as Coinbase.com, the Coinbase trading platform, and Coinbase Prime.

On December 19, 2024, around 12 PM Eastern Time, trading of WBTC will be temporarily halted on Coinbase. This decision was made following their latest evaluation, which found that WBTC no longer aligns with their listing criteria. The exact reasons for this delisting have not been disclosed at this time.

Coinbase has transitioned its WBTC order system into a ‘limit-only’ model, enabling users to submit and revoke limit orders. Although trading is set to end in December, users can still manage their WBTC assets and make withdrawals following the temporary halt.

This choice corresponds to the increasing use of Coinbase’s own version of the Bitcoin token wrapped as Coinbase Wrapped BTC (cbBTC), which was introduced in September 2024. Each cbBTC is backed by an equivalent amount of Bitcoin held securely in Coinbase vaults, providing a secure platform for engaging with decentralized applications.

By November 19, 2024, the market capitalization of cbBTC stood at approximately $1.3 billion, with a total of 15,070 tokens in circulation. The majority of these tokens were traded on Base (82%), Ethereum (16%), and Solana (2%). This swift expansion makes cbBTC a compelling competitor within the DeFi sector, offering a robust alternative to current wrapped Bitcoin solutions.

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2024-11-19 23:16