The exchange doesn’t feel the Bitcoin offshoot is meeting its obligations
Coinbase has announced it will halt trading of Wrapped Bitcoin (WBTC) on December 19, 2024, due to the token no longer meeting its listing standards. This decision affects all trading on Coinbase platforms, including Advanced Trade, Coinbase Exchange, and Coinbase Prime. Users will still be able to access and withdraw their WBTC holdings despite the suspension.
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on December 19, 2024, on or around 12pm ET.
— Coinbase Assets 🛡️ (@CoinbaseAssets) November 19, 2024
Wrapped Bitcoin functions as a tokenized version of Bitcoin for use on other blockchain networks, providing interoperability between platforms. Despite its significant role in the decentralized finance sector, holding over $13 billion in total value locked, Coinbase has decided to delist it. The team behind WBTC expressed regret over this decision, emphasizing their commitment to transparency and urging Coinbase to reconsider.
This move follows controversy surrounding BitGo, the custodian of WBTC’s Bitcoin reserves. Earlier this year, BitGo granted partial control of its wallet to BiT Global, a company associated with Justin Sun, founder of TRON, sparking concerns about potential mismanagement. Nevertheless, WBTC continues to be the leading Bitcoin wrapper.
Coinbase’s decision also aligns with its focus on promoting its own Bitcoin wrapper, Coinbase Wrapped BTC (cbBTC). Since its launch in September 2024, cbBTC has rapidly gained popularity, amassing $1.4 billion in total value locked. To address earlier criticisms, Coinbase plans to introduce proof-of-reserve measures to enhance cbBTC’s transparency.
The suspension of WBTC trading underscores the competitive and evolving nature of the tokenized Bitcoin market. It also serves as a reminder for investors to stay informed about the shifting regulatory and operational landscapes in cryptocurrency trading.
