Coinbase to delist trading of WBTC in December

Coinbase announced that it will suspend Wrapped Bitcoin (WBTC) trading on all platforms, including Coinbase.com and Coinbase Prime, on December 19, 2024.

The decision came after a routine asset review and put WBTC order books into limit-only mode. In its statement about X, Coinbase announced that users will be able to withdraw WBTC from the exchange even after it is delisted.

We regularly monitor assets on our exchange to ensure they comply with our listing standards. According to our latest review, Coinbase will suspend wBTC (wBTC) trading around 12:00 PM ET on December 19, 2024.

— Coinbase Assets 🛡️ (@CoinbaseAssets) 19 November 2024

Launched in 2019, WBTC tokenizes Bitcoin (BTC), allowing Bitcoin liquidity to flow into decentralized finance ecosystems. The token is pegged at a 1:1 ratio with Bitcoin and has a market cap of over $13.6 billion.

BitGo, its primary custodian, traditionally maintains underlying Bitcoin reserves.

BitGo controversy

However, recent changes in the management of the WBTC protocol are raising concerns in the industry. In August, BitGo announced a joint venture with BiTGlobal, a Hong Kong-based trust company affiliated with TRON founder Justin Sun.

This partnership, which aims to increase geographic decentralization, has led to scrutiny of Sun’s increasing influence in the protocol. Crypto projects are currently 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 launched earlier this year. With a market cap of $1.5 billion, cbBTC is gaining traction as a competitor in the wrapped Bitcoin market.

WBTC’s response

The team behind WBTC expressed surprise and disappointment at Coinbase’s decision to delist the asset on X, emphasizing their commitment to compliance, transparency, and decentralization.

In a statement, the WBTC team emphasized the tight governance of its products, secure custody processes and regulatory adherence, and underlined WBTC’s status as the most decentralized wrapped BTC solution on the market.

We are saddened and surprised by Coinbase’s decision to delist WBTC. As the core team behind Wrapped BTC, we are always committed to providing the community with the most compatible, transparent and decentralized BTC tokenization product.

Over the years, WBTC was established…

— WBTC (@WrappedBTC) 19 November 2024

Urging Coinbase to reconsider its decision, the WBTC team offered to provide further information or clarification to address concerns.