On Thursday, Coinbase unveiled cbBTC, a tokenized version of Bitcoin on its Base layer 2 and Ethereum. This launch follows the recent BitGo controversy about the custody arrangement for Wrapped Bitcoin (WBTC) now involving Justin Sun, sparking concerns within the crypto community.
In this episode, Will Robinson, Coinbase’s VP of engineering, discusses the strategic importance of cbBTC, how it differs from other wrapped Bitcoin products, and what this means for the future of Bitcoin within DeFi ecosystems.
Will Coinbase’s reputation as a "trusted custodian" be enough to make cbBTC the go-to choice for Bitcoin in DeFi, or will the industry remain skeptical?
- 01:54 Why Coinbase launched cbBTC and how it aims to bring Bitcoin into the world of DeFi
- 04:05 What happens behind the scenes when users mint cbBTC
- 05:21 What sets cbBTC apart from other wrapped Bitcoin options, according to Will
- 06:32 Whether Coinbase will expand cbBTC to other layer 2s and where users can already use it on major DeFi platforms
- 08:45 Will’s response to criticisms about the centralization of cbBTC
- 12:28 Why Coinbase's cbBTC launch was part of long-term plans, unrelated to the recent controversy around WBTC and Justin Sun
- 13:31 How Coinbase plans to make money from cbBTC, considering that WBTC has not been a big moneymaker for BitGo
- 15:38 Why Coinbase has the ability to freeze and blacklist cbBTC addresses
- 19:34 How Coinbase ensures that Bitcoin backing cbBTC remains the property of token holders and won’t be used as collateral or rehypothecated
- 20:58 Why Coinbase, a centralized entity, is launching cbBTC, a product for the decentralized, onchain world
- 23:57 Why Will doesn't want to predict how much demand there'll be for cbBTC
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cbBTC
BitGo changing custody and its implications:
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