A cryptic post from Coinbase’s X myth introduced on hypothesis that the replace modified into as soon as working on a brand novel quite plenty of to Wrapped Bitcoin (WBTC).

“cbBTC,” wrote Coinbase in a post on Tuesday evening, which it followed up with “Coming soon” just a few hours later.

A comment left by Coinbase’s layer 2 network Noxious’s unswerving X myth that read “based fully” added gasoline to theories that the firm plans to roll out its occupy version of WBTC on Noxious. The layer 2 network’s creator Jesse Pollak all but confirmed that design modified into as soon as in toddle almost at the moment after.

“to impart it out loud: I enjoy bitcoin, am so grateful for it’s feature kickstarting crypto, and we’re going to manufacture a huge bitcoin economy on injurious,” acknowledged Pollak on X.

If Coinbase does intend to initiating a cbBTC on Noxious, it can presumably well possibly likely near with benefits of lower fees to mint and redeem tokens, and power elevated utilization of wrapped Bitcoin tokens by drawing in additional users that belief the Coinbase trace.

A doubtless quite plenty of to WBTC comes at an extremely appealing time, given the controversy spherical one of WBTC’s valuable custodians BitGo, and its plans to transfer custody out of the U.S. and into Hong Kong and Singapore.

There’s spherical 154,000 WBTC on Ethereum, rate over $9 billion at the time of writing. Major DeFi lending protocols enjoy MakerDAO and Aave secure a significant amount of WBTC as collateral, and secure already initiated governance talks on the next steps in light of the custody adjustments.

MakerDAO’s threat management unit BA Labs proposed offboarding WBTC, while Aave’s threat unit Chaos Labs looks to be leaning against a more wait-and-discover invent of potential.

“This week may presumably well moreover merely label the turning level when BitGo went from being the market dominant BTC by-product, with a $9.3 billion market cap, securing several billion in loans across DeFi, to a extremely rapidly decline,” acknowledged Luke Youngblood, founding contributor to Moonwell.

“We don’t know when cbBTC will initiating, but BitGo fumbling the ball and shedding your complete tokenized Bitcoin market in a extremely brief period of time modified into as soon as not something anyone predicted per week ago.”