Chainlink has enabled transfers of Coinbase’s wrapped Bitcoin token, cbBTC, from Base to the Monad blockchain utilizing its Cross-Chain Interoperability Protocol, enabling greater than $5 billion price of cbBTC to maneuver into the Monad ecosystem.
In keeping with Monday’s announcement from Monad, the mixing brings cbBTC into the Monad DeFi ecosystem, the place a bevy of functions, together with Curvance and Neverland, are adopting cbBTC markets.
The transfer introduces Bitcoin-backed liquidity to lending, borrowing, and different decentralized finance (DeFi) functions on Monad, an EVM-compatible layer-1 blockchain designed for high-throughput buying and selling and monetary use instances.
“As Bitcoin-backed property develop into the tens of billions, the infrastructure transferring them has to fulfill that scale,” mentioned William Reilly, head of strategic initiatives at Chainlink Labs. CCIP was constructed with a number of layers of decentralized validation to scale back cross-chain dangers and keep constant 1:1 backing throughout networks, he added.
Monad touts throughput of as much as 10,000 transactions per second and sub-second finality, positioning itself as infrastructure for transaction-intensive monetary functions.
Coinbase launched cbBTC in September 2024 as a wrapped Bitcoin token on Ethereum and Base, backed 1:1 by BTC held in custody and designed to robotically mint and redeem in opposition to Bitcoin deposits on the alternate.
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New merchandise intention to make Bitcoin a yield-bearing asset
In contrast to proof-of-stake networks such as Ethereum (ETH) and Solana (SOL), the place customers can earn rewards by staking tokens, Bitcoin’s proof-of-work design doesn’t natively generate yield. That constraint has traditionally restricted onchain revenue choices for holders of the most important cryptocurrency, however new monetary constructions have began to handle the hole.
In Could, Solv Protocol co-founder Ryan Chow mentioned demand for Bitcoin yield strategies is accelerating, significantly amongst corporations in search of liquidity with out promoting Bitcoin. He pointed to proof-of-stake integrations and delta-neutral buying and selling methods as increasing methods Bitcoin can generate returns whereas supporting community safety and liquidity.
That very same month, Coinbase launched the Coinbase Bitcoin Yield Fund focusing on 4% to eight% annual web returns for institutional traders exterior the US. A few month later, Kraken launched a Bitcoin staking product by way of an integration with Babylon Labs, permitting customers to lock up their BTC and delegate it to safe proof-of-stake networks with out bridging or wrapping.
Wrapped Bitcoin has additionally continued to develop throughout networks. In November, WBTC integrated with the Hedera network with assist from BitGo and LayerZero, extending the biggest tokenized model of Bitcoin into one other sensible contract ecosystem.
Final week, Telegram’s built-in TON Pockets added vaults enabling customers to earn yield on Bitcoin throughout the messaging app by way of underlying decentralized finance infrastructure.
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Cointelegraph by Nate Kostar Monad Gains Bitcoin Liquidity as Chainlink Enables cbBTC Bridge from Base cointelegraph.com 2026-03-02 21:21:31
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