Coinbase, the leading U.S.-based cryptocurrency exchange, revealed plans to halt trading for Wrapped Bitcoin (WBTC) starting December 19, 2024, at 12 p.m. ET. The decision follows a routine asset review to ensure compliance with listing standards, as shared in an official X (Twitter) announcement.
Why Coinbase Is Phasing Out WBTC
The suspension impacts both Coinbase Exchange and Coinbase Prime, shifting WBTC trading to limit-only mode until the deadline. Users can still:
- Place/cancel limit orders
- Withdraw WBTC funds at any time
This move coincides with the rise of Coinbase’s wrapped Bitcoin token, cbBTC, which recently surpassed a $1.44 billion market cap. Key factors driving cbBTC’s adoption:
- Native support across Ethereum, Solana, Base, and Arbitrum
- Integration into Aave V3 and other DeFi protocols
👉 Explore how cbBTC compares to WBTC in liquidity and security
WBTC Team’s Response and Community Reactions
The WBTC core team urged Coinbase to reconsider, emphasizing WBTC’s:
- Regulatory compliance
- Decentralized governance
- DeFi protocol compatibility
Community sentiment was divided:
- Critics cited concerns over WBTC’s custody ties to BitGo and Justin Sun’s involvement.
- Supporters framed the delisting as Coinbase favoring its proprietary solution.
“When Sun joined WBTC’s multisig, I swapped my WBTC for BTC on Coinbase and moved it to cold storage. This decision validates my caution.” — Community member
FAQ: Key Questions Answered
1. Can I still withdraw WBTC after December 19?
Yes. Funds remain accessible for withdrawals indefinitely.
2. What alternatives exist for WBTC holders?
Consider cbBTC or native BTC, depending on your DeFi use cases.
3. Why is cbBTC growing faster than WBTC?
Coinbase’s multi-chain support and institutional backing enhance its appeal.
4. Will WBTC regain its market position?
Unclear. Transparency and custody models will shape its future.
The Bottom Line
Coinbase’s pivot to cbBTC signals a strategic shift in wrapped Bitcoin solutions, prioritizing in-house products amid regulatory scrutiny. For users, diversifying across WBTC, cbBTC, and native BTC may mitigate risks.
👉 Stay updated on wrapped Bitcoin trends
This analysis adheres to strict editorial standards, avoiding speculation or unverified claims. Always conduct independent research before making financial decisions.
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