Coinbase to delist WBTC, halt trading on Dec. 19

Coinbase will disable Wrapped Bitcoin (WBTC) trading pairs from its speech and Prime platforms connected Dec. 19, citing the token’s nonaccomplishment to conscionable its listing standards, according to a Nov. 19 announcement.

Users volition inactive beryllium capable to retreat their funds past this date.

Coinbase did not specify however WBTC falls beneath its listing standards, the determination comes 3 months aft WBTC issuer BitGo announced a multi-jurisdictional custody exemplary to boost its planetary enlargement plan. 

BitGo transferred WBTC’s power to a associated task with BiT Global, which is tied to TRON laminitis Justin Sun. As a result, the assemblage showed interest implicit however overmuch power Sun would person implicit WBTC.

This alteration prompted DeFi protocols specified arsenic Sky (former Maker) to ballot for WBTC removal arsenic collateral for its stablecoin DAI.

Some firms, including Coinbase, person stepped successful to screen the spread near by WBTC successful the synthetic Bitcoin (BTC) market. The speech precocious launched the Coinbase BTC (cbBTC).

Challenging dominance

According to a Kaiko report, Coinbase’s cbBTC is making notable inroads successful adoption connected the starring wealth market, Aave. Since aboriginal October, cbBTC’s stock of Aave’s synthetic Bitcoin marketplace has surged from 3% to 17%, marking a 5x summation successful conscionable weeks.

Launched successful September, cbBTC has already reached a marketplace headdress of $1.3 billion, capturing astir 10% of the marketplace dominated by WBTC.

Its accelerated ascent reflects its entreaty arsenic a diversifier to WBTC and the interaction of targeted incentives, specified arsenic Aave’s October Merit reward program, which promotes cbBTC deposits and USD Coin (USDC) borrowing.

Unlike stablecoins, wrapped assets similar WBTC and cbBTC are not pegged to BTC, trading astatine values that tin deviate from their underlying plus owed to marketplace conditions. Since August, WBTC has consistently traded astatine a discount versus BTC, marking its steepest divergence since the FTX collapse.

The study noted that arsenic WBTC navigates mounting scrutiny, cbBTC’s momentum signals a imaginable displacement successful the competitory scenery for wrapped Bitcoin assets.

The station Coinbase to delist WBTC, halt trading connected Dec. 19 appeared archetypal connected CryptoSlate.