Coinbase Wrapped BTC (cbBTC) is a token fully backed 1:1 by Bitcoin (BTC) held securely by Coinbase. For each cbBTC issued, an equivalent amount of BTC is stored by Coinbase in custodial solutions, including cold storage. As a wrapped asset, cbBTC allows BTC to be used in DeFi applications across Ethereum, Base, and Solana. Users can convert cbBTC back to BTC by depositing it in their Coinbase accounts. cbBTC can be used in DeFi protocols to provide liquidity, act as collateral, or facilitate payments, bringing BTC into a more liquid and versatile digital financial ecosystem. The minting and burning processes ensure that each cbBTC token matches BTC reserves, handled through secure smart contracts. Custodianship uses hot and cold wallets, with rigorous access control, audits, and blockchain data reconciliation to confirm cbBTC-BTC alignment. cbBTC’s contract roles include an Admin, Owner, and Blacklister, managing security, key access, and regulatory compliance with AML and KYC.
