Coinbase launches cbBTC, an ERC20 token backed 1:1 by Bitcoin in its custody. cbBTC allows BTC holders to access DeFi apps like Aave, Compound, and MakerDAO. Over 843,783 Bitcoins back cbBTC, representing 4% of the total Bitcoin supply.

Coinbase, the largest cryptocurrency exchange in the US, has officially launched its new tokenization product, Coinbase Wrapped Bitcoin (cbBTC), marking a significant development in the tokenization of Bitcoin across blockchains. The newly launched ERC20 token is fully backed 1:1 by Coinbase’s Bitcoin holdings, allowing holders to interact with decentralized finance (DeFi) applications on Ethereum and Base. The release of cbBTC provides an innovative bridge between Bitcoin and Ethereum’s DeFi ecosystem, giving Bitcoin holders more ways to lend, borrow, and earn yields with their assets. cbBTC is backed by Coinbase’s Bitcoin holdings Coinbase’s extensive Bitcoin holdings back the entire supply of cbBTC. As of now, Coinbase holds over 843,783 Bitcoins in custody, valued at around $48.7 billion, representing more than 4% of the total Bitcoin supply. This ensures robust liquidity for cbBTC holders. The number of cbBTC tokens in circulation will be directly limited by the amount of Bitcoin Coinbase owns. How cbBTC works The mechanics behind cbBTC are simple yet effective. When users transfer Bitcoin from Coinbase to an address on Base or Ethereum, their BTC is automatically converted into cbBTC at a 1:1 ratio. This conversion happens seamlessly, and the reverse process occurs when cbBTC is sent back to a Coinbase account, transforming the wrapped asset back into Bitcoin. Unlike a typical token launch, cbBTC will not have a separate order book or trading pair on Coinbase, but it will be accessible on decentralized exchanges (DEXs) like Aerodrome and Curve. Additionally, third-party exchanges may choose to list cbBTC in the future. Expanding decentralized financial access The introduction of cbBTC is not just a technical advancement but also part of Coinbase’s broader mission to expand decentralized financial access. Will Robinson, Coinbase’s Vice President of Engineering, has highlighted cbBTC’s potential to bring “1 billion people on-chain.” By providing Bitcoin holders with access to DeFi applications such as Aave, Compound, and MakerDAO, cbBTC enhances the utility of Bitcoin, helping users integrate their BTC into a wider financial ecosystem. With the growing demand for Bitcoin-based DeFi products, cbBTC positions Coinbase as a leader in the tokenization space. Notably, Coinbase’s move comes shortly after BitGo’s announcement regarding custody services for wBTC, further fueling competition in the wrapped Bitcoin market. With support from major DeFi protocols, cbBTC is could play a key role in shaping the future of decentralized finance.

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Flowcarbon have refunded investors after failing to launch the Goddess Nature Token (GNT). The GNT token was meant to tokenize carbon credits but faced market and regulatory challenges. Flowcarbon raised $70M in funding but continues to face delays in the carbon market.

Flowcarbon, a blockchain-based carbon credit platform co-founded by former WeWork CEO Adam Neumann, has begun refunding investors after the highly anticipated launch of its “Goddess Nature Token” (GNT) was cancelled. The startup, which promised to revolutionize carbon markets by tokenizing carbon credits, cited tough market conditions and resistance from carbon registries as the primary reasons behind the failure to launch. The failed GNT token launch Some investors, including the prominent venture capital firm Andreessen Horowitz, have been waiting over a year for the launch, which never materialized. The refunds, confirmed by Flowcarbon’s spokesperson reportedly began a few weeks ago. According to the spokesperson, the refunds to retail GNT buyers were ready since last year but have been delayed due to delays in the industry. Notably, the refund process required purchasers to sign waivers of claims against the company and agree to confidentiality terms. The GNT was designed to be backed 1:1 with carbon credits, certificates that large corporations use to offset their carbon emissions. Tokenizing these credits would have allowed broader investor participation in the carbon market. Despite its promising concept, Flowcarbon failed to overcome the technical and regulatory challenges associated with the project. However, despite the setback, Flowcarbon remains active in the climate finance sector. The startup raised $70 million in Series A funding in May 2022, with major backers like Andreessen Horowitz, General Catalyst, and Samsung NEXT. While at least $38 million of that sum came from the sale of Flowcarbon’s token, it remains unclear if retail investors were included. The broader market for energy and environment-related tokens currently holds a market cap of $186 million, with Powerledger’s POWR and Energy Web’s EWT accounting for 94% of that value.

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