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Coinbase has announced that it will suspend trading of Wrapped Bitcoin (WBTC) across all its platforms starting December 19, 2024.
The decision, which impacts Coinbase.com and Coinbase Prime, follows the company’s routine asset review.
In preparation for the suspension, WBTC trading will move to a limit-only mode, although users will still be able to withdraw WBTC after the delisting, the company clarified in a post on X (formerly Twitter).
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.
Wrapped Bitcoin, launched in 2019, was designed to bring Bitcoin liquidity into decentralized finance (DeFi) ecosystems by allowing Bitcoin to be tokenized and used on blockchain networks other than Bitcoin’s.
Pegged 1:1 with Bitcoin, WBTC currently holds a market capitalization exceeding $13.6 billion. The token has primarily been managed by BitGo, which maintains the underlying Bitcoin reserves.
BitGo’s role as the main custodian of WBTC has been largely stable, but recent changes in its governance have raised concerns within the crypto industry.
In August, BitGo entered into a joint venture with BiTGlobal, a trust company based in Hong Kong and affiliated with TRON founder Justin Sun.
This move was intended to diversify governance geographically but has sparked worries about Sun’s influence over WBTC operations.
As a result, several crypto projects are reconsidering their involvement with WBTC due to potential governance vulnerabilities.
Coinbase’s decision to delist WBTC aligns with the growth of its own Bitcoin tokenization product, cbBTC.
Launched earlier in 2024, cbBTC has gained momentum with a market capitalization of $1.5 billion.
The introduction and success of cbBTC suggest that Coinbase is strategically positioning itself to compete within the wrapped Bitcoin market.
WBTC team’s response
We regret and are surprised by Coinbase’s decision to delist WBTC. As the core team behind Wrapped BTC, we have always been committed to providing the community with the most compliant, transparent, and decentralized BTC tokenization product. Over the years, WBTC has established…
The WBTC team responded to the delisting news with surprise and disappointment. In a statement shared on X, they emphasized their commitment to regulatory compliance, secure custody processes, and decentralization.
They argued that WBTC remains the most decentralized wrapped Bitcoin solution available and underscored the rigorous governance framework that supports the token.
The WBTC team urged Coinbase to reconsider its decision and offered to engage with the exchange to address any concerns or provide further clarification.
Their response highlights a broader industry dialogue about the future of tokenized Bitcoin solutions and the governance challenges that come with them.
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