Coinbase to add backup proofs to Bitcoin wrapper cbBTC
Coinbase confirmed to Cointelegraph on September 30 that a Coinbase spokesperson plans to add Coinbase Wrapped BTC (cbBTC) to the new Bitcoin (BTC) wrapper.
Adding Proof of Reserve (PoR) puts cbBTC on par with rival Bitcoin wrappers such as Wrapped Bitcoin (WBTC) and 21.co Wrapped Bitcoin (21BTC). It also addresses concerns about Coinbase's lack of transparency.
“We've been planning PoR since the early days with CBBTC and the team has been working hard to build it,” said Lucas Staniszewski, product manager at Coinbase, in a statement at the X Forum on September 23.
Chainlink backup verification. Source: Chainlink
Related: 21.co Bitcoin Wrapper to Add Chainlink Backup Verification
On September 23rd, Coinbase updated an earlier blog post to note that PoR was included in the cbBTC product roadmap but did not announce the plans.
“Greater transparency with backup verification has been part of our roadmap since the conception of cbBTC and has followed it,” said Coinbase.
In September, Coinbase was criticized for delaying the transparency of rival Bitcoin wraps. Coinbase was also the target of unfounded rumors that it was issuing unbacked Bitcoin IOUs to BlackRock, a crypto exchange-traded fund (ETF) sponsor.
“[A]Almost all coins (including WBTC) provide backup verifications so you can verify that they are backed up,” Defilama anonymous developer 0xngmi said in a post on the X forum on September 23rd.
“cbBTC is below par in terms of transparency,” added 0xngmi.
Capped tokens by market capitalization. Source: CoinGecko
Launched on September 12th, Coinbase's cbBTC proved to be one of the most popular BTC wrappers, with $250 million in total value locked (TVL) according to CoinMarketCap.
Coinbase's cbBTC stands out among Bitcoin wallets that are committed to reimbursing holders for losses from some cyber security exploits. It is also extensively regulated by the New York Department of Financial Services.
Initially mintable on Ethereum and Base – Coinbase's layer-2 scaling network – cbBTC will soon launch on Solana, according to an article posted on the X forum on September 20.
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