In this issue of Coin Metrics’ State of the Network, we explore the growing ecosystem of tokenized Bitcoin, focusing on Wrapped Bitcoin (WBTC) and Coinbase’s cbBTC as mediums for extending BTC’s utility across chains.
Key Takeaways
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Tokenized bitcoin, such as wrapped bitcoin (WBTC) and cbBTC extend the utility of BTC beyond its base layer, enhancing accessibility and interoperability across chains.
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Wrapped BTC tokens come with varying custody models and governance structures, ranging from fully centralized issuers (e.g., Coinbase’s cbBTC) to decentralized, smart contract-based systems (e.g., Threshold tBTC).
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WBTC remains the largest by supply (~129K BTC), but cbBTC is quickly gaining share with native issuance across Base and Solana (~43K). Together, they represent over 172K BTC in tokenized form, used differently across chains.
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Wrapped BTC is widely adopted in DeFi. WBTC dominates Ethereum DEX activity (led by Uniswap v3), while cbBTC is more active on Base DEXs like Aerodrome. Together, over $7B worth of WBTC and cbBTC is locked in lending protocols like Aave and Morpho, allowing users to borrow against their BTC.
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