Coinbase Wrapped BTC (cbBTC) is a token that represents a 1:1 backing by Bitcoin (BTC) held securely by Coinbase. For every cbBTC in circulation, there is an equivalent amount of BTC stored in a secure custody solution, including cold storage. This structure ensures that users can trust the value of cbBTC as it is directly tied to the underlying Bitcoin. The design of cbBTC allows for easy redemption. Coinbase customers can convert their cbBTC back into BTC by simply depositing the token into their Coinbase accounts. This feature enhances liquidity and provides users with flexibility in managing their Bitcoin assets. cbBTC is engineered for seamless compatibility with decentralized finance (DeFi) applications. This compatibility enables users to explore innovative financial opportunities, such as providing liquidity to DeFi protocols, using it as collateral for borrowing other cryptocurrencies, or even utilizing it for payments. By facilitating the use of Bitcoin onchain, cbBTC eliminates barriers that typically hinder the utilization of traditional Bitcoin in the digital finance landscape. This wrapped asset not only enhances access to DeFi but also contributes to a broader financial ecosystem, making Bitcoin more versatile for users. Overall, cbBTC serves as a bridge between traditional Bitcoin holdings and the expanding world of decentralized finance, unlocking new possibilities for users and enhancing the liquidity of assets within the blockchain ecosystem.