Coinbase will formally cease Wrapped Bitcoin (WBTC) trading on December 19, 2024, due to the token’s failure to meet the exchange’s new listing standards. While the exchange has already switched to a limit-only trading mode, allowing customers to place and cancel orders, all WBTC trading will end by mid-December. However, Coinbase promised users that their WBTC assets will remain safe and accessible, with the option to withdraw at any moment.
This decision is consistent with Coinbase’s developing support for its own wrapped Bitcoin product, cbBTC, which debuted in September 2024. cbBTC, which is backed 1:1 by Bitcoin and held in Coinbase custody, has swiftly gained popularity as an alternative to WBTC, providing a secure way to connect with decentralized applications. As of November 2024, cbBTC boasts a market capitalization of $1.3 billion and is rapidly becoming a significant competitor to Bitcoin in the DeFi arena.
Wrapped Long a popular token, Bitcoin enables its use on Ethereum and other blockchains, significantly contributing to decentralized finance. However, Coinbase’s increasing focus on its own coin, along with concerns about WBTC’s transparency and management, could suggest a shift in the market towards more reliable options.
