The largest crypto exchange in the United States is coming after a new opportunity: bringing Bitcoin to decentralized finance.

‍What’s happening:‍

• Coinbase (NASDAQ: COIN) has launched a new ERC-20 token known as Coinbase Wrapped Bitcoin onto the Base and Ethereum blockchains
  

How it works:‍

• Coinbase’s new token known as cbBTC is a wrapped version of Bitcoin which is backed on a 1:1 basis by Bitcoin held directly in custody by Coinbase
  
• Bitcoin holders can now choose to use cbBTC to stake their Bitcoin holdings onto popular decentralized finance applications in order to generate a yield or as collateral for lending
  

Going deeper:‍

• Coinbase has initially launched cbBTC for users in the United States, Singapore, Australia, Brazil and the United Kingdom
  
• Some of the largest decentralized finance protocols in crypto have already integrated cbBTC including Curve, Uniswap and Compound
  
• Coinbase has been making a push to bring more innovation into Bitcoin, previously launching an integration with the Lightning Network to enable rapid low cost payments globally
  

The intrigue:‍

• The concept of generating a yield through Bitcoin ownership has been on the rise, with DeFi Technologies (CBOE: DEFI) previously launching the world’s first yield generating Exchange Traded Product for Bitcoin on the Nordic Growth Market

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