Coinbase is preparing to launch tokenized Bitcoin on the Base network

• Coinbase has announced the potential launch of cbBTC based on the Layer-2 network.
• cbBTC would be pegged 1:1 to the price of Bitcoin, serving as a source of liquidity for users on Base.
• Several members of the crypto community have expressed their displeasure with BitGo’s move to hand over wBTC to Bit Global.

Coinbase revealed its plans to launch a Bitcoin token bundled with the symbol cbBTC on its core network in an X post on Wednesday. The announcement comes after Bitgo announced plans to move ownership of wBTC to Bit Global, sparking massive criticism.

Coinbase prepares for cbBTC launch, wBTC FUD spreads

Cryptocurrency exchange Coinbase is preparing to launch a tokenized Bitcoin for users on its Layer-2 network base, according to a post on its X account on Wednesday. The exchange posted cbBTC and followed it up with a comment that said “coming soon,” suggesting that the launch of tokenized Bitcoin is imminent.

Coinbase tokenized Bitcoin cbBTC will launch on the Core Network – Coinbase’s Ethereum-based Layer-2 – and will be linked 1:1 to the market price of Bitcoin, giving Base users access to the largest crypto asset by market cap .

Base CEO Jesse Pollak expressed his excitement about the upcoming token launch after Coinbase’s announcement.

“Let me say it out loud: I love bitcoin, I’m so grateful for his role in starting crypto, and we’re going to build a massive Bitcoin economy on Base,” Jesse wrote on X.

The move from Coinbase comes after the crypto community expressed concern over BitGo’s plans to transfer custody of wBTC to Bit Global, a platform linked to Tron blockchain founder Justin Sun.

Several members of the crypto community reacted negatively to the announcement due to Sun’s reputation, claiming that BitGo’s move could be harmful to wBTC.

As a result, MakerDAO’s risk team proposed stopping lending options for wBTC to reduce the potential risks involved in the move.

However, Justin Sun urged the crypto community that wBTC will work as it always has and no changes will be made to its provision.

Meanwhile, BitGo also expressed in an X post that it will pay attention to potential user issues and concerns.

Bitcoin is down more than 3% in the last 24 hours.