Coinbase will drop WBTC due to the expansion of cbBTC

On By Pranco

  • Coinbase announced that it would suspend WBTC trading on all its platforms starting December 19.
  • Users would still be able to access their funds and withdraw funds at any time.
  • Coinbase’s cbBTC launched on Ethereum-based Arbitrum as it continues its expansion.

Coinbase announced via an X-post on Tuesday that it will suspend WBTC trading on all its platforms on December 19. Meanwhile, the exchange also revealed that its wrapped Bitcoin token, cbBTC, was launched on Arbitrum earlier today.

WBTC takes a hit as Coinbase expands cbBTC

Crypto exchange, Coinbase, has revealed its latest decision to suspend all trading operations for BitGo’s wrapped Bitcoin token WBTC. The exchange claims that the decision is based on the fact that the token does not meet listing standards.

Although the suspension will take effect on December 19, WBTC holders can still access their funds and make withdrawals on Coinbase at any time.

The company also stated that it has moved its order books for the token to ‘limit-only’ mode, meaning traders can only place limit orders with WBTC.

The WBTC team expressed strong dissatisfaction with Coinbase’s decision and stated that they have maintained a good partnership with the exchange.

“We have maintained active communication and full cooperation with all due diligence processes, including with Coinbase, to ensure our product meets all compliance standards,” the WBTC team wrote in an X-post on Tuesday.

The team also requested that Coinbase reconsider its decision and stated that they would answer any questions that might warrant the removal of WBTC.

Coinbase’s action may have been largely influenced by the recent controversy surrounding WBTC’s custodian BitGo’s decision to enter into a joint venture agreement with BitGlobal, which was co-founded by Justin Sun. Sun’s involvement raised concerns about the credibility of an ongoing decentralized structure for WBTC.

Other members of the crypto community argued that the recent expansion of Coinbase’s wrapped Bitcoin token, cbBTC, has made the exchange insecure, prompting WBTC’s delisting.

cbBTC has been integrated into several blockchain platforms in recent months, including the Solana ecosystem. Coinbase announced Tuesday that it has wrapped Bitcoin token has made its way to the Arbitrum network.