Coinbase is in the process of discontinuing Wrapped Bitcoin (wBTC) from its platform, citing concerns regarding its listing standards. This decision follows the recent introduction of their competing product, cbBTC.

Key Points:

• Coinbase plans to halt trading of wBTC on December 19.
• The company introduced its own version, cbBTC, after facing criticism for wBTC amidst concerns regarding centralization and listing standards.

wBTC represents Bitcoin on Ethereum and other blockchains. It is primarily offered by BitGo, with other similar products existing that represent tokens on non-native blockchains.

The scrutiny surrounding wBTC heightened after BitGo announced a venture with BiT Global, leading to concerns over Justin Sun's involvement in the custodial process.

Mike Belshe, the CEO of BitGo, defended the credibility of wBTC against Coinbase’s perspective, stating, "We are a fiduciary today, and it’s our duty to ensure that the assets are protected, regardless of where they are held."

He expressed concerns that centralized control over assets could undermine the ethos of decentralized finance (DeFi).

Ultimately, this pivot in Coinbase's strategy reflects the ongoing evolution and competitive landscape within the cryptocurrency market.