Coinbase has announced plans to integrate Proof of Reserve (PoR) into its new Bitcoin wrapper, Coinbase Wrapped BTC (cbBTC).
The addition of PoR would make cbBTC more competitive, putting it on par with competitors like Wrapped Bitcoin (WBTC) and 21.co Wrapped Bitcoin (21BTC), while also addressing concerns about Coinbase’s transparency.
Ludas Staniszewski, Head of Product at Coinbase, said on September 23:
“We’ve been planning for PoR since the early days of cbBTC, and the team is working hard to implement it.”
Chainlink Proof of Reserve will be integrated into the plan. Coinbase also updated its blog on September 23 to note the inclusion of PoR in the product roadmap, although no further details have been released.
“Greater transparency with proof of reserves has been part of our roadmap since cbBTC launched and will continue to be.”
In September, Coinbase faced criticism for its delay in providing transparency to Bitcoin wrappers, along with rumors that it had issued unbacked Bitcoin IOUs to BlackRock, a sponsor of an ETF.
“Most bridges (including WBTC) provide proof of reserves for users to verify the backing of issued coins, but Coinbase does not,” 0xngmi, an anonymous developer of DefiLlama, wrote on September 23, noting that “cbBTC is not up to the mark in terms of transparency.”
Launched on September 12, cbBTC quickly became one of the most popular Bitcoin wrappers, with a total value locked (TVL) of around $250 million. Notably, cbBTC is committed to reimbursing holders for losses in the event of cyberattacks and is under close supervision from the New York Department of Financial Services.