Key Takeaways
- Coinbase will officially delist wBTC on Dec. 19, 2024.
- wBTC was initially created in Bitgo, Kyber Network, and REN collaboration.
- wBTC will remain accessible to Coinbase Exchange and Coinbase Prime.
Cryptocurrency exchange Coinbase has decided to delist Wrapped Bitcoin (wBTC), citing failures to meet unspecified listing criteria.
It is now focusing on the proliferation of its wrapped product, cbBTC.
Coinbase wBTC Delisting
As per the official announcement from Coinbase, wBTC trading will be officially suspended on Dec. 19, 2024, at roughly 12:00 ET. The decision follows a recent review which found that wBTC fails to meet the exchange’s listing standards.
Coinbase has not specified these faults or standards.
The decision has been somewhat surprising, considering that wBTC is an extremely popular decentralized finance (DeFi) asset with over $13.6 billion in locked assets.
The core team behind wBTC expressed disappointment in the move, explaining that they’d built wBTC to become the most “decentralized and transparent” wrapped BTC product through innovation and “rigorous governance,” writing:
“WBTC has consistently demonstrated the highest level of professionalism and responsibility. We have maintained active communication and full cooperation with all due diligence processes, including with Coinbase, to ensure that our product meets all compliance standards.“
The team has urged Coinbase to reconsider the move and maintain support for wBTC trading.
However, the move follows Coinbase’s version of wrapped Bitcoin, cbBTC, which was released in Sept. 2024 and initially launched on the exchange’s Layer-1 blockchain, Base.
Centralization Concerns
Until recently, the crypto exchange BitGo, one of the creators of wBTC, was the sole custodian of wBTC, which raised centralization concerns that were not so different from those of cbBTC.
Further compounding worries is the scrutiny following BitGo’s decision to partner with BitGlobal, a partially owned custody platform by Tron founder Justin Sun.
Some had raised concerns that Sun’s involvement at an operational level could pose risks to the project. However, BitGo CEO Mike Belshe dismissed these concerns and noted that Sun cannot access the custodians’ asset keys. Sun has reiterated this.
Ironically, Coinbase’s cbBTC has drawn criticism for being a centralization risk itself, as Coinbase appears to be the sole custodian. Furthermore, according to Sun, cbBTC lacks proof-of-reserve or audits and alleges Coinbase or the U.S. government can freeze and seize funds.
cbBTC Push
Coinbase will now focus its energy on seeing cbBTC flourish, and efforts are well underway. On Nov. 8, America’s largest crypto exchange deployed cbBTC, the first token it issued, onto the Solana (SOL) network.
So far, 2,578 holders have given SOL-based cbBTC a market cap of $31.8 million. Decentralized finance (DeFi) platform Kamino Finance is one of the top destinations, with $6 million in cbBTC.
But it faces stiff competition, as other cryptocurrency exchanges such as Kraken also have their own wrapped BTC products (kBTC), not to mention the growing number of variants on Solana, such as Zeus Network’s BTC.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
