Coinbase Wrapped BTC (cbBTC) is a token designed to provide a 1:1 backing with native Bitcoin (BTC) held securely by Coinbase. For every cbBTC in circulation, there is an equivalent amount of BTC stored in a safe custody solution, including cold storage. This structure ensures that users can confidently convert their cbBTC back to BTC at any time. As a wrapped asset, cbBTC offers the flexibility to be easily transferred and redeemed for the underlying Bitcoin. Coinbase customers can effortlessly unwrap cbBTC by depositing it into their accounts, enabling them to access their BTC when needed. The token is specifically designed to integrate seamlessly with decentralized finance (DeFi) applications. This compatibility empowers users to explore innovative financial opportunities, such as providing liquidity to DeFi protocols, using their Bitcoin as collateral for borrowing other crypto assets, or even utilizing it for payments. By introducing cbBTC, Coinbase facilitates a smoother transition for Bitcoin holders into the world of DeFi, eliminating traditional barriers. This wrapped asset concept enhances liquidity and fosters a diverse financial ecosystem on the blockchain. Overall, cbBTC serves as a bridge between Bitcoin's stability and the dynamic possibilities offered by DeFi, unlocking new financial utilities for users.