Cryptocurrency exchange Coinbase has launched the cbETH token. The new coin is a derivative asset issued on the security of ETH locked in staking. As of August 25, cbETH is available for trading on Coinbase in pairs to USD.
The new token from cryptocurrency exchange Coinbase is a wrapped ETH version 2.0. The token is liquid, so it could be easily exchanged for fiat currency or other crypto assets. Staked ETH can be transferred, “gifted”, or used as collateral in DeFi, generating additional income from the blocked tokens.
It’s worth noting that the token can be sold or transferred from outside the Coinbase platform, unlike ETH2, which will be blocked until 2023, when the protocol will be updated.
Transferring cbETH will only be possible on the Ethereum network. According to Coinbase representatives, the funds will be lost if the transfer is made to other networks. There is no commission related to wrapping or unwrapping the token.
As for the cost of cbETH, it will not be equated to 1:1 to the Ether. The cbETH price will be formed from the value of the blocked Ether, plus the interest accumulated on staking.
The main competitor of the new coin is the previously issued stETH from Lido Finance, a service for liquid cryptocurrency staking.
