Coinbase to Delist Wrapped Bitcoin in December

Key Insights

• Coinbase will suspend Wrapped Bitcoin trading on December 19, 2024, citing unspecified listing standard failures.
• The delisting follows controversial developments with BitGo’s wallet control and comes as Coinbase promotes its own Bitcoin wrapper.

NEW YORK, Nov 20 (MarketsXplora) – Cryptocurrency exchange Coinbase announced it will suspend trading of Wrapped Bitcoin (WBTC) on December 19, 2024, citing undisclosed failures to meet its listing standards.

The platform has already discontinued market trading of WBTC, limiting transactions to limit orders only. Coinbase confirmed the suspension will affect all its trading platforms, including Coinbase.com, Coinbase Exchange, and Coinbase Prime.

Despite the delisting, Coinbase assured users that WBTC funds will remain accessible, with continuous withdrawal capabilities.

The move follows controversial developments in August when BitGo, WBTC’s Bitcoin custodian, granted partial control of its multisignature wallet to Hong Kong-based exchange BiT Global. Threshold, a competing Bitcoin wrapper, raised concerns about potential collateral misappropriation associated with the transaction.

Currently, WBTC remains the most popular Bitcoin wrapper, with approximately $13 billion in total value locked (TVL), according to blockchain data platform DefiLlama.

Coinbase has simultaneously been promoting its own competitor, Coinbase Wrapped BTC (cbBTC), launched in September. The new wrapper has quickly gained traction, accumulating roughly $1.4 billion in TVL.

The delisting comes after previous criticisms of Coinbase’s transparency in Bitcoin wrapping and unfounded rumors about unbacked Bitcoin IOUs.

Wrapped Bitcoin representatives expressed surprise at the decision, urging Coinbase to reconsider and maintain WBTC trading support.

Coinbase plans to add verifiable proof of reserves to its cbBTC offering, signaling continued commitment to transparency in cryptocurrency trading.