Coinbase has launched its wrapped Bitcoin product, cbBTC, on Solana, which allows crypto users to use Bitcoin on other networks. The token is backed 1:1 with Bitcoin and represents Coinbase’s first token issued on Solana. Coinbase hopes the wrapped product will find similar success on Solana as it has on Ethereum, where it has challenged Bitcoin-based incumbents.
Solana’s DeFi ecosystem is competing for crypto users, and Coinbase’s product helps cement the presence of one of the industry’s most popular exchanges on Ethereum’s competitor. The wrapped product could also find success as a means of using Bitcoin on Solana, given the product’s swift rise on Ethereum and Base, Coinbase’s layer-2 scaling solution.
