Bitcoin Is Worth Over $1 Trillion. How Much Will Coinbase’s New cbBTC Grab? - Ep. 703

Sep 13, 2024

Will Robinson, VP of Engineering at Coinbase, dives into the launch of cbBTC, a groundbreaking tokenized Bitcoin designed to enhance DeFi engagement. He explains how cbBTC differs from existing wrapped Bitcoin options, assuring listeners of its strategic importance amidst custodial controversies. The discussion unpacks Coinbase's plans for cbBTC, addressing concerns over centralization and the company’s ability to manage assets effectively. With insights into regulatory challenges and user trust, Robinson paints a picture of Bitcoin's evolving role in the DeFi landscape.

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INSIGHT

cbBTC Utility

Coinbase launched cbBTC to add utility to Bitcoin held by their users.
This allows users to wrap Bitcoin and use it in DeFi applications.

INSIGHT

Minting cbBTC

Users can choose to send Bitcoin on the Bitcoin network, Lightning network, or wrap it to send on Base or Ethereum L1.
Wrapping mints one new CBBTC, backed by one Bitcoin custodied by Coinbase.

INSIGHT

Trust and cbBTC

Coinbase believes its reputation as a trusted custodian differentiates cbBTC.
They emphasize their long track record and large existing Bitcoin holdings.

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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

Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

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Guest

Will Robinson, VP of Engineering at Coinbase

Bitcoin Is Worth Over $1 Trillion. How Much Will Coinbase’s New cbBTC Grab? - Ep. 703

cbBTC Utility

Minting cbBTC

Trust and cbBTC

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