Coinbase announced it will suspend trading of Wrapped Bitcoin — WBTC — on December 19, 2024, across all its platforms, including Coinbase.com and Coinbase Prime.
The decision follows a routine asset review and shifts WBTC order books to limit-only mode. Users can still withdraw WBTC from the exchange after the delisting, Coinbase clarified in a statement on X.
Launched in 2019, WBTC allows Bitcoin liquidity to flow into decentralized finance ecosystems by tokenizing Bitcoin (BTC). The token is pegged 1:1 with Bitcoin and boasts a market cap exceeding $13.6 billion.
BitGo, its primary custodian, has traditionally maintained the underlying Bitcoin reserves.
BitGo controversy
However, recent shifts in the governance of the WBTC protocol are sparking industry concerns. In August, BitGo announced a joint venture with BiTGlobal, a Hong Kong-based trust company linked to TRON founder Justin Sun.
This partnership, aimed at increasing geographical decentralization, has led to scrutiny over Sun’s growing influence in the protocol. Crypto projects are already adjusting their interactions with WBTC due to potential governance risks.
Coinbase’s move coincides with the growth of its own tokenized Bitcoin product, cbBTC, which was launched earlier this year. With a $1.5 billion market cap, cbBTC is gaining traction as a competitor in the wrapped Bitcoin market.
WBTC’s response
The team behind WBTC expressed surprise and disappointment over Coinbase’s decision to delist the asset on X, emphasizing their commitment to compliance, transparency, and decentralization.
In a statement, the WBTC team highlighted their product’s rigorous governance, secure custody processes, and regulatory adherence, underscoring WBTC’s status as the most decentralized wrapped BTC solution on the market.
Urging Coinbase to reconsider its decision, the WBTC team offered to provide further information or clarification to address any concerns.
