Coinbase to Suspend Wrapped Bitcoin (wBTC) Trading Next Month

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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November 18, 2024

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Coinbase announced on Tuesday its decision to suspend Wrapped Bitcoin (WBTC) trading across all its platforms, including Coinbase.com and Coinbase Prime, starting December 19, 2024, at approximately 12 p.m. ET.

The exchange noted that while trading would be halted, users could still transfer WBTC tokens off the platform even after its delisting.

WBTC Team Fights Back: Will Coinbase Reconsider Its Delisting Decision?

The exchange has already shifted its WBTC order books to limit-only mode, allowing users to place and cancel limit orders. Matches are still possible until the suspension.

Wrapped Bitcoin, the largest tokenized version of Bitcoin that operates on Ethereum and other blockchains, has been a popular choice for users seeking interoperability between Bitcoin and decentralized finance (DeFi) platforms.

Coinbase did not provide specific reasons for its decision to delist the token, stating only that the move was based on its “most recent review.”

The team behind WBTC expressed disappointment over Coinbase’s announcement.

In a statement on X, the WBTC team emphasized its commitment to “compliance, transparency, and decentralization” and described its product as “the most decentralized wrapped BTC solution on the market.”

They stressed the asset’s secure custody processes and adherence to regulatory standards.

Customers holding WBTC on Coinbase are advised to move their assets to self-custody wallets or other platforms before the trading halt takes effect.

Coinbase Delisting Of WBTC: What’s Behind the December 19 Deadline?

WBTC, a token launched in 2019 to bring Bitcoin liquidity to DeFi, is backed 1:1 by Bitcoin and currently has a market cap of $13.6 billion.

For years, BitGo acted as the primary custodian of the Bitcoin backing WBTC, but recent shifts have altered the governance structure.

BitGo distributed custody to three entities in August, including BiT Global, a Hong Kong-based trust company.

This change has drawn attention due to BiT Global’s partnership with TRON creator Justin Sun–a figure known for his controversial reputation and influence in the crypto space.

While this partnership was positioned as a step to increase “geographical resilience,” it has sparked industry concerns.

MakerDAO responded by restricting the use of WBTC as collateral for minting DAI, citing governance risks. Similarly, Aave announced it would closely monitor the developments.

Coinbase, meanwhile, has introduced its own wrapped Bitcoin token, cbBTC, to provide a trusted alternative. Launched in September 2024, cbBTC is an ERC-20 token fully backed by Bitcoin held in Coinbase custody.

The token has quickly gained popularity, amassing a market cap of $1.3 billion with a circulating supply of over 15,000 tokens.

Analytics show that cbBTC is primarily active on Base (82%), followed by Ethereum (16%) and Solana, highlighting its growing role in the DeFi ecosystem.