{"id":296695,"date":"2024-08-15T08:53:18","date_gmt":"2024-08-15T08:53:18","guid":{"rendered":"https:\/\/www.techopedia.com\/?p=296695"},"modified":"2024-08-15T08:53:18","modified_gmt":"2024-08-15T08:53:18","slug":"coinbase-announces-cbbtc-does-brand-beat-trustlessness","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness","title":{"rendered":"Coinbase Announces cbBTC: Does Brand Beat Trustlessness?"},"content":{"rendered":"<p>Coinbase&#8217;s plan to launch a <a href=\"https:\/\/www.techopedia.com\/definition\/wrapped-bitcoin-wbtc\">wrapped Bitcoin<\/a> token called <strong>cbBTC<\/strong> comes on the back of controversy and trust issues at BitGo \u2014 custodian of the world&#8217;s most popular wrapped Bitcoin token, wBTC.<\/p>\n<p>As <a href=\"https:\/\/www.techopedia.com\/definition\/27531\/cryptocurrency\">cryptocurrencies<\/a> steadily inch towards mass adoption, we are getting glimpses of what the crypto industry could look like soon \u2014 one where <a href=\"https:\/\/www.techopedia.com\/definition\/decentralization\">decentralization<\/a> and <a href=\"https:\/\/www.techopedia.com\/definition\/trustless\">trustlessness<\/a> are no longer the priority.<\/p>\n<p>Instead, traditional finance terms such as &#8220;fiduciary&#8221; are becoming the norm as crypto projects backed by reputable and &#8220;trustworthy&#8221; brands, like Circle&#8217;s <a href=\"https:\/\/www.techopedia.com\/definition\/usd-coin-usdc\">USDC<\/a> and possibly Coinbase&#8217;s cbBTC, thrive.<\/p>\n<div class=\"su-note\"  style=\"border-color:#dddddd;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#f7f7f7;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<h2><span id=\"key_takeaways\">Key Takeaways<\/span><\/h2>\n<ul>\n<li>Coinbase teased its followers on X with a cryptic post saying &#8220;cbBTC.&#8221;<\/li>\n<li>cbBTC announcement comes after the crypto community voiced its concern about <a href=\"https:\/\/blog.bitgo.com\/bitgo-to-move-wbtc-to-multi-jurisdictional-custody-to-accelerate-global-expansion-plan-2ea0623fa2c8\" target=\"_blank\">BitGo&#8217;s decision<\/a> to relinquish its wBTC custodian responsibility to a new joint venture company.<\/li>\n<li>Coinbase&#8217;s USDC stablecoin, created in collaboration with Circle, is the second-largest stablecoin in the world.<\/li>\n<li>The success of USDC suggests that crypto users value a &#8220;trustworthy&#8221; brand more than decentralization and trustlessness.<\/li>\n<\/ul>\n<\/div><\/div>\n<div>\n    <section class=\"toc-sticky w-100 bg-white \">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\"\n                 aria-controls=\"multiCollapse1\"\n                 data-bs-target=\"#multiCollapse1\">\n                <button\n                        class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\"\n                >\n                    <i class=\"icon-chevron-up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n                <span class=\"toc-main-title-permanent\">Table of Contents<\/span>\n            <\/div>\n            <div\n                    class=\"collapse my-3\"\n                    id=\"multiCollapse1\"\n            >\n                <ol class=\"StepProgress\">\n                                                                        <li class=\"StepProgress-item current\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"key_takeaways\"\n                               onclick=handleScrollToTitle(\"key_takeaways\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Key Takeaways<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"fiduciary_vs_trustless\"\n                               onclick=handleScrollToTitle(\"fiduciary_vs_trustless\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Fiduciary vs. Trustless<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"coinbase_cbbtc_different_product_same_playbook\"\n                               onclick=handleScrollToTitle(\"coinbase_cbbtc_different_product_same_playbook\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Coinbase cbBTC: Different Product, Same Playbook<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"wbtc_concerns_pave_the_way_for_coinbases_cbbtc\"\n                               onclick=handleScrollToTitle(\"wbtc_concerns_pave_the_way_for_coinbases_cbbtc\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">wBTC Concerns Pave the Way for Coinbase's cbBTC<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"coinbase_to_create_a_trustworthy_wrapped_bitcoin_token\"\n                               onclick=handleScrollToTitle(\"coinbase_to_create_a_trustworthy_wrapped_bitcoin_token\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Coinbase to Create a \"Trustworthy\" Wrapped Bitcoin Token?<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"faqs\"\n                               onclick=handleScrollToTitle(\"faqs\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">FAQs<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"references\"\n                               onclick=handleScrollToTitle(\"references\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">References<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                    <\/ol>\n                <div class=\"toc-sticky__container__disperse\"><\/div>\n                <div class=\"toc-sticky__btn-top justify-content-center\">\n                    <button class=\"btn btn-link d-flex align-items-center\" onclick={btnTop()}><p>Show Full Guide<\/p><img decoding=\"async\"\n                                src=\"\/wp-content\/plugins\/table-of-contents\/assets\/images\/arrow-up-circle.svg\"\n                                alt=\"arrow-up-circle\">\n                    <\/button>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n    <div class=\"toc-sticky-list\">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\" aria-controls=\"multiCollapse2\" data-bs-target=\"#multiCollapse2\">\n                <button class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\">\n                    <i class=\"icon-chevron-up up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n            <\/div>\n            <div  class=\"collapse my-3\" id=\"multiCollapse2\">\n                <ol class=\"StepProgress\">\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item current \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"key_takeaways\"\n                                   onclick=handleScrollToTitle(\"key_takeaways\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Key Takeaways<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"fiduciary_vs_trustless\"\n                                   onclick=handleScrollToTitle(\"fiduciary_vs_trustless\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Fiduciary vs. Trustless<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"coinbase_cbbtc_different_product_same_playbook\"\n                                   onclick=handleScrollToTitle(\"coinbase_cbbtc_different_product_same_playbook\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Coinbase cbBTC: Different Product, Same Playbook<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t\n\t\t\t\t\t\t <span class=\"show_moretoc\">Show Full Guide<\/span>\n\t\t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"wbtc_concerns_pave_the_way_for_coinbases_cbbtc\"\n                                   onclick=handleScrollToTitle(\"wbtc_concerns_pave_the_way_for_coinbases_cbbtc\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">wBTC Concerns Pave the Way for Coinbase's cbBTC<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"coinbase_to_create_a_trustworthy_wrapped_bitcoin_token\"\n                                   onclick=handleScrollToTitle(\"coinbase_to_create_a_trustworthy_wrapped_bitcoin_token\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Coinbase to Create a \"Trustworthy\" Wrapped Bitcoin Token?<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"faqs\"\n                                   onclick=handleScrollToTitle(\"faqs\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">FAQs<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"references\"\n                                   onclick=handleScrollToTitle(\"references\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">References<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                                    <\/ol>\n            <\/div>\n            <div class=\"toc-sticky__container__disperse\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n<script id=\"toc-js\">\n    window.addEventListener(\"DOMContentLoaded\", () => {\n        const header = document.querySelector(\".header_wrapper\");\n\n        const pageLegend = document.querySelector('#multiCollapse1');\n        const pageLegendList = document.querySelector('#multiCollapse2');\n        const pageLegendCollapse = new bootstrap.Collapse(pageLegend, {toggle: 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pageLegend.classList.remove('overflow-auto');\n        pageLegend.style.height = 'auto';\n        window.scrollTo({\n            top: 0,\n            behavior: 'smooth'\n        });\n    }\n\n    const handleScrollToTitle = (id) => {\n        const el = document.getElementById(id);\n        const headerHeightDifference = window.innerWidth < 992 ? -30 : -15;\n        window.scrollTo({\n            top: el.offsetTop - 60 - headerHeightDifference - 10,\n        });\n    }\n<\/script>\n\n<h2><span id=\"fiduciary_vs_trustless\">Fiduciary vs. Trustless<\/span><\/h2>\n<p>Crypto&#8217;s most popular products, other than <a href=\"https:\/\/www.techopedia.com\/definition\/27193\/bitcoin-btc\">Bitcoin<\/a> (BTC) and <a href=\"https:\/\/www.techopedia.com\/definition\/32571\/ethereum-cryptocurrency\">Ethereum<\/a> (ETH), are <a href=\"https:\/\/www.techopedia.com\/definition\/stablecoin\">stablecoins<\/a> \u2014 and there&#8217;s a problem.<\/p>\n<p>The fiat-pegged tokens give holders dollar exposure, work as a hyperinflation hedge, and offer stability against crypto market volatility from anywhere in the world.<\/p>\n<p>But, as they currently stand, they are neither trustless nor decentralized.<\/p>\n<p><a href=\"https:\/\/www.techopedia.com\/definition\/tether-usdt\">USDT<\/a>, the largest stablecoin in the world with tokens worth over $116 billion circulating at the time of writing, is heavily centralized.<\/p>\n<p>Its operating company, Tether, issues USDT tokens. The issuer also maintains the reserves backing the tokens.<\/p>\n<p>Regarding Tether&#8217;s fiduciary duties, the company&#8217;s history casts much doubt on the mind of the idealist crypto user.<\/p>\n<p>The firm was <a href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8450-21\" target=\"_blank\">fined $42.5 million in October 2021<\/a> by the Commodity Futures Trading Commission (CFTC) for falsely claiming that it &#8220;maintained sufficient U.S. dollar reserves to back every USDT in circulation&#8221; between June 2016 to February 2019.<\/p>\n<p>According to the CFTC, Tether had fiat reserves to redeem only 27.6% of USDT tokens in circulation in a 26-month sample period from 2016 through 2018.<\/p>\n<p>Despite the complete absence of trustlessness and decentralization, Tether and USDT continue to grow exponentially.<\/p>\n<p>Between January 2021 and August 2024, the <a href=\"https:\/\/coinmarketcap.com\/currencies\/tether\/\" target=\"_blank\">market cap of USDT<\/a> has grown over five-fold from $21 billion to $116 billion.<\/p>\n<p>Brand wins, at the cost of crypto&#8217;s goals where you do not need to place trust on one party alone.<\/p>\n<h2><span id=\"coinbase_cbbtc_different_product_same_playbook\">Coinbase cbBTC: Different Product, Same Playbook<\/span><\/h2>\n<p>In 2018, Coinbase and Circle started a joint venture called Centre Consortium to provide crypto users with a &#8220;safe&#8221; stablecoin called USDC, as an alternative to USDT, which was marred with controversy.<\/p>\n<p>Coinbase and Circle&#8217;s regulatory-first and transparent approach made USDC the stablecoin of choice for institutional and corporate clients. Backed by reputed brands, USDC has slowly chipped away at USDT&#8217;s dominant position to become the second-largest stablecoin in the world, with a market cap of $34 billion.<\/p>\n<p>Contrary to the crypto industry&#8217;s value proposition of trustlessness, Coinbase and Circle marketed trust as the ultimate currency for their stablecoin venture.<\/p>\n<p>As things stand, Circle-issued USDC and its Euro-pegged stablecoin EURC are <a href=\"https:\/\/www.techopedia.com\/usdc-becomes-compliant-as-mica-regulations-change-crypto-expert-analysis\">the only compliant stablecoins in the European market<\/a> backed by an Electronic Money Institution license.<\/p>\n<p>Now Coinbase aims to do the same with wrapped Bitcoin tokens with the launch of cbBTC.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">cbBTC.<\/p>\n<p>&mdash; Coinbase \ud83d\udee1\ufe0f (@coinbase) <a href=\"https:\/\/twitter.com\/coinbase\/status\/1823501582006411614?ref_src=twsrc%5Etfw\" target=\"_blank\">August 13, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The crypto exchange teased its followers on X with a cryptic post saying &#8220;<a href=\"https:\/\/x.com\/coinbase\/status\/1823501582006411614\" target=\"_blank\">cbBTC<\/a>.&#8221; A subsequent post followed, saying &#8220;Coming soon.&#8221; No further details were shared.<\/p>\n<h2><span id=\"wbtc_concerns_pave_the_way_for_coinbases_cbbtc\">wBTC Concerns Pave the Way for Coinbase&#8217;s cbBTC<\/span><\/h2>\n<p>The cbBTC announcement comes after the crypto community voiced its concern about BitGo&#8217;s decision to relinquish its wBTC custodian responsibility to a new joint venture company created by BitGo, BiT Global, and <a href=\"https:\/\/www.techopedia.com\/definition\/tron-trx\">Tron<\/a> founder <a href=\"https:\/\/www.techopedia.com\/definition\/justin-sun\">Justin Sun<\/a>.<\/p>\n<p>wBTC was created in 2018 by BitGo, Kyber Network, and Republic Protocol. BitGo is the only custodian of wBTC, while Kyber and Republic perform the duties of &#8220;merchant&#8221; &#8211;\u00a0 parties that initiate mint and burn processes and distribute wBTC to users.<\/p>\n<p>BA Lab, a member of MakerDAO&#8217;s Stability Scope Advisory Council, <a href=\"https:\/\/forum.makerdao.com\/t\/wbtc-changes-and-risk-mitigation-10-august-2024\/24844\" target=\"_blank\">called<\/a> for MakerDAO to lower its exposure to wBTC collateral used to mint the DAI stablecoin.<\/p>\n<p>The group was particularly concerned about Sun&#8217;s involvement in wBTC project.<\/p>\n<p>&#8220;We can infer that Justin Sun will have significant influence or control over the joint venture managing WBTC \u2026 Since TUSD was placed into Justin Sun&#8217;s control, it has seen market deterioration in operational processes and transparency, including the resignation of the previous management team, suspension of real-time proof of reserves, and several significant de-pegs caused by interruptions in redemption service,&#8221; said BA Labs.<\/p>\n<h2><span id=\"coinbase_to_create_a_trustworthy_wrapped_bitcoin_token\">Coinbase to Create a &#8220;Trustworthy&#8221; Wrapped Bitcoin Token?<\/span><\/h2>\n<p>Coinbase&#8217;s backing will instantly make cbBTC the biggest challenger to wBTC&#8217;s dominance in the wrapped Bitcoin token sector.<\/p>\n<p>After all, Coinbase is the most reputable cryptocurrency exchange in the world.<\/p>\n<p>Its co-founder and CEO <a href=\"https:\/\/www.techopedia.com\/brian-armstrong-net-worth\">Brian Armstrong<\/a> has long fought to maintain Coinbase&#8217;s status as a compliant and safe exchange, best exemplified by Coinbase&#8217;s hesitancy to list assets other than BTC and ETH in 2017, despite new entrant <a href=\"https:\/\/www.techopedia.com\/definition\/changpeng-zhao-cz\">Binance<\/a> blowing past competition with exotic token listings, native <a href=\"https:\/\/www.techopedia.com\/definition\/binance-smart-chain-bsc#:~:text=Binance%20Smart%20Chain%20(BSC)%20is,to%20support%20high%20transaction%20volumes.\">BNB Coin<\/a> offering and <a href=\"https:\/\/www.techopedia.com\/definition\/33148\/initial-coin-offering-ico\">ICO<\/a> Launchpad features.<\/p>\n<p>Given how successful USDC has become, it makes me wonder whether having a &#8220;trustworthy&#8221; brand back a crypto project is more attractive for users than decentralization and trustlessness.<\/p>\n<h2><span id=\"faqs\">FAQs<\/span><\/h2>\n<div class=\"man_faq_sec\" itemscope itemtype=\"https:\/\/schema.org\/FAQPage\"><section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What is wrapped Bitcoin?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">A wrapped Bitcoin token is a crypto that is pegged to the price of Bitcoin. It is used to represent Bitcoin value on a foreign blockchain to Bitcoin.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What is the difference between wrapped Bitcoin vs Bitcoin?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Wrapped Bitcoin is a crypto token that is pegged to the price of Bitcoin. It exists on a foreign blockchain to Bitcoin. Meanwhile, BTC is the native token of the Bitcoin blockchain.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Is wrapped Bitcoin the same as Bitcoin?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">No, wrapped Bitcoin is different from Bitcoin. Wrapped Bitcoin is a crypto token that represents the value of Bitcoin on a foreign blockchain. BTC is the native token of the Bitcoin blockchain.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Is Coinbase launching a wrapped Bitcoin token?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Coinbase teased its followers on X with a cryptic post saying \u201ccbBTC.\u201d A subsequent post followed saying \u201cComing soon.\u201d No further details were shared.<\/p>\r\n                <\/div><\/div><\/section>\n<div class=\"reference-content\">\n<div class=\"reference-heading reference-content-collapsible-heading\">\n<h2><span id=\"references\">References<\/span><\/h2>\n<\/div>\n<div class=\"reference-content-body\">\n<ol>\n<li><a href=\"https:\/\/blog.bitgo.com\/bitgo-to-move-wbtc-to-multi-jurisdictional-custody-to-accelerate-global-expansion-plan-2ea0623fa2c8\" target=\"_blank\">BitGo to Move WBTC to Multi-Jurisdictional Custody to Accelerate Global Expansion Plan | by BitGo Editor | Aug, 2024 | Official BitGo Blog<\/a> (Blog.bitgo)<\/li>\n<li><a href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8450-21\" target=\"_blank\">CFTC Orders Tether and Bitfinex to Pay Fines Totaling $42.5 Million | CFTC<\/a> (Cftc)<\/li>\n<li><a href=\"https:\/\/coinmarketcap.com\/currencies\/tether\/\" target=\"_blank\">Tether USDt price today, USDT to USD live price, marketcap and chart | CoinMarketCap<\/a> (Coinmarketcap)<\/li>\n<li><a href=\"https:\/\/x.com\/coinbase\/status\/1823501582006411614\" target=\"_blank\">x.com<\/a> (X)<\/li>\n<li><a href=\"https:\/\/forum.makerdao.com\/t\/wbtc-changes-and-risk-mitigation-10-august-2024\/24844\" target=\"_blank\">WBTC Changes and Risk Mitigation &#8211; 10 August 2024 &#8211; General Discussion &#8211; The Maker Forum<\/a> (Forum.makerdao)<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Coinbase&#8217;s plan to launch a wrapped Bitcoin token called cbBTC comes on the back of controversy and trust issues at BitGo \u2014 custodian of the world&#8217;s most popular wrapped Bitcoin token, wBTC. As cryptocurrencies steadily inch towards mass adoption, we are getting glimpses of what the crypto industry could look like soon \u2014 one where [&hellip;]<\/p>\n","protected":false},"author":286557,"featured_media":296714,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[601],"tags":[],"category_partsoff":[],"class_list":["post-296695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.8 (Yoast SEO v23.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Coinbase Announces cbBTC: Does Brand Beat Trustlessness? - Techopedia<\/title>\n<meta name=\"description\" content=\"As Coinbase announces a wrapped Bitcoin token, cbBTC, following trust issues with wBTC, we explore how users follow projects backed by trusted brands \u2014 regardless of centralization risks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coinbase Announces cbBTC: Does Brand Beat Trustlessness?\" \/>\n<meta property=\"og:description\" content=\"As Coinbase announces a wrapped Bitcoin token, cbBTC, following trust issues with wBTC, we explore how users follow projects backed by trusted brands \u2014 regardless of centralization risks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness\" \/>\n<meta property=\"og:site_name\" content=\"Techopedia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/techopedia\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-15T08:53:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/08\/Coinbase-Announces-cbBTC-Does-Brand-Beat-Trustlessness.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"686\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Mensholong Lepcha\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@techopedia\" \/>\n<meta name=\"twitter:site\" content=\"@techopedia\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mensholong Lepcha\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness\"},\"author\":{\"name\":\"Mensholong Lepcha\",\"@id\":\"https:\/\/www.techopedia.com\/#\/schema\/person\/7cbd52e25b530c379bb0531645d987af\"},\"headline\":\"Coinbase Announces cbBTC: Does Brand Beat Trustlessness?\",\"datePublished\":\"2024-08-15T08:53:18+00:00\",\"dateModified\":\"2024-08-15T08:53:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness\"},\"wordCount\":1137,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.techopedia.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2024\/08\/Coinbase-Announces-cbBTC-Does-Brand-Beat-Trustlessness.webp\",\"articleSection\":\"\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness\",\"url\":\"https:\/\/www.techopedia.com\/coinbase-announces-cbbtc-does-brand-beat-trustlessness\",\"name\":\"Coinbase Announces cbBTC: Does Brand Beat Trustlessness? 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