Coinbase has launched cbBTC, or Coinbase Wrapped Bitcoin, a new ERC-20 token fully backed 1:1 by Bitcoin (BTC) held by Coinbase. The goal of cbBTC is to allow Bitcoin holders to use their BTC within decentralized finance (DeFi) applications on both the Ethereum and Base networks, which opens up new ways to tap into BTC liquidity onchain. Users can convert their Bitcoin to cbBTC when transferring BTC from Coinbase to Base or Ethereum, and vice versa when sending cbBTC back to their Coinbase account.