Coinbase Announce to Rollout Support for Wrapped Bitcoin

October 17, 2020 3:38 PM UTC

The giant San Francisco-based cryptocurrency exchange Coinbase announced the listing of the most famous synthetic Bitcoin, Wrapped Bitcoin, to its “Pro” exchange.

The exchange official announcement discloses that Coinbase Pro platform will receive deposits of WBTC from US users outside of New York. Trading will start on “ after 9 AM Pacific Time (PT) Tuesday, October 20, if liquidity conditions are met.”  With two trading pairs: WBTC-USD and WBTC-USD. 

Wrapped Bitcoin, an ERC20 token pegged by bitcoin at a 1:1 ratio, surged abruptly in the mid of June 2020. Investors are converting Bitcoin to Ethereum in order to participate in various decentralized finance( DeFi) protocols. WBTC stands at the top spot by holding 70% of the market share, renBTc comes second by holding 20% of the market share.

As reported earlier, the number of Bitcoin on the Ethereum network hit over the $1.497 billion mark. As per the Dune Analytics Dashboard, these figures are equal to 3.6% of the Ethereum total market cap.

Coinbase Hold $11 Billion Worth of Bitcoin in Cold Storage 

The huge sum of Bitcoin is stored in Coinbase cold storage. As per the Bitcoin analytics platform ChainInfo, the cryptocurrency exchange holds about 994,904 Bitcoin worth over $11 billion at the time of reporting.

Market analysis unveils that the number of Bitcoin held by Coinbase in the cold wallet has declined compared to December 2019. However, Coinbase’s reserves jump more valuable by the time as BTC’s price rallies significantly since then. Currently, the Bitcoin value is $11,420 as per CoinMarketCap.

Blockchain Research Lab researcher Elias Strehle said, “it might be the world’s largest honeypot; a lot of people surely wish they had a quantum computer.” 

Compared to other cryptocurrency exchanges, Coinbase leads the market by holding a far greater number of Bitcoin. According to data from ChainInfo, Huobi holds 323,655 BTC worth $3.7 billion in its cold storage, Binance and Kraken hold 289,691 BTC ($3.3 billion) and 126,509 BTC ($1.4 billion), respectively.

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