- Although users will still be able to remove wBTC from the exchange, the exchange stated that it will delist the coin in December.
- Longtime guardian BitGo declared in August that it was entering into a “strategic partnership” with Justin Sun and the TRON ecosystem to relinquish some authority over the wBTC protocol.
- In just a few months, the market capitalization of Coinbase’s wrapped bitcoin, or cbBTC, has increased to around $1.5 billion.
On Tuesday, Coinbase declared that it will stop trading wrapped bitcoin, or wBTC, the following month. The biggest tokenized form of Bitcoin that is traded on Ethereum and other blockchains is called wrapped bitcoin.
To make sure the assets on our exchange fulfill our listing requirements, we keep a close eye on them. Our latest assessment indicates that Coinbase will stop trading wBTC (wBTC) on December 19, 2024, at or around 12 p.m. ET.
We have switched to limit-only mode for our wBTC order books. Users can take their wBTC tokens off the exchange even after it is delisted, and limit orders can be set and canceled. Matches can also happen.
The action was taken when BitGo, the main wBTC custodian, agreed to form a joint venture with BiTGlobal, allowing TRON creator Justin Sun to have more control over the wBTC protocol.
Since its launch in January 2019, WBTC has increased bitcoin’s liquidity inside the larger cryptocurrency market. With a current market valuation of more than $13.6 billion, the asset, which is backed one to one by bitcoin, roughly matches the price of bitcoin.
For many years, BitGo served as the primary key holder for the wBTC protocol and was responsible for maintaining the underlying bitcoin tokens that represented the created wBTC tokens on several blockchains.
In an effort to strengthen its geographical resilience, BitGo declared in August that it would divide custody of the project among three companies in what it referred to as a bit. Among them was BiT Global, a trust firm with connections to Sun that is situated in Hong Kong.
The crypto industry was agitated by this alleged “strategic partnership between BitGo, Justin Sun, and the Tron ecosystem,” in part due to ongoing disputes involving Sun, one of the most significant players in the field.
For example, decentralized lender Aave stated it will keep an eye on the situation, but stablecoin issuer MakerDAO first voted to restrict minting its DAI stablecoin using wBTC as collateral.
The market value of cbBTC, Coinbase’s tokenized version of wrapped bitcoin, has increased to over $1.5 billion in a few of months.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
