Coinbase has launched its highly-anticipated wrapped Bitcoin token, cbBTC. On Sept. 12, Coinbase, the largest U.S.-based cryptocurrency exchange, began rolling out cbBTC, comprising an ERC-20 token fully backed with Bitcoin held by Coinbase. The token is live on Ethereum and Base, Coinbase’s Layer 2 network, with plans to deploy on additional chains moving forward. “As the oldest and most widely held crypto asset, Bitcoin plays an important role in onboarding users to crypto,” Coinbase said. “Starting today, millions of Coinbase customers can seamlessly and securely access financial apps within the Ethereum ecosystem using Bitcoin they already hold.” Wrapped Bitcoin tokens allow users to utilize the value of BTC holdings on other networks, with the majority of tokenized Bitcoin making its way into Ethereum’s DeFi sector. Coinbase announced an expansive list of major DeFi protocols that have already integrated support for cbBTC on Ethereum and Base, including the lending protocols Aave, Morpho, Sky, and Compound, decentralized exchanges Aerodrome and Curve, yield vaults Veda and Mellow, and the web3 credit platform Maple. “By bringing assets across more chains, wrapped assets like cbBTC help build a more efficient, interconnected, and expansive financial ecosystem,” Coinbase said. “Coinbase is excited to spur innovative financial apps and wider adoption of Bitcoin in DeFi.” CbBTC is available to Coinbase users in the United Kingdom, the European Economic Area, Singapore, Australia, Brazil, and the United States with the exclusion of New York State. Coinbase capitalizes on WBTC controversy Coinbase first announced plans for cbBTC on Aug. 13, just a few days after BitGo’s Wrapped Bitcoin, the largest Bitcoin-backed token, found itself at the center of controversy after announcing plans to shake up its ownership structure. On Aug. 9, BitGo revealed it would transfer control over Wrapped Bitcoin to a joint venture between itself and BiT Global, with plans to partner with Justin Sun, Tron’s controversial founder, and the Tron ecosystem in 60 days. Critics highlighted concerns regarding reduced transparency regarding WBTC’s management, the joint venture’s headquarters moving from the U.S. to Singapore, and Justin’s Sun’s increased involvement — with Sun’s association with TrueUSD precipitating disruptions and depegs for the stablecoin. Wrapped Bitcoin currently commands an $8.9 billion market cap, accounting for just 0.77% of Bitcoin’s capitalization, according to CoinGecko. Coinbase’s cbETH currently ranks as the seventh-largest Ethereum liquid staking token with a market cap of $492.3 million, and comes in fourth excluding restaking tokens.