Coinbase has introduced an on-chain Proof of Reserves system for its wrapped Bitcoin token cbBTC, using Chainlink Proof of Reserve oracles deployed on both the Base layer-2 network and Ethereum mainnet. According to Coinbase and Chainlink, this setup lets anyone independently verify on-chain that the amount of Bitcoin held in Coinbase’s custody matches the circulating supply of cbBTC at a 1:1 ratio. Coinbase’s cbBTC product represents Bitcoin tokenized on Ethereum-compatible networks, backed by BTC held by Coinbase, with the new PoR feeds publishing reserve and supply data directly to smart contracts. Chainlink Proof of Reserve is designed to monitor off-chain reserves backing tokenized assets by using decentralized oracle networks to fetch and report reserve data on-chain in near real time. By integrating this infrastructure for cbBTC on Base and Ethereum, Coinbase is aligning its wrapped asset with a growing industry expectation for transparent collateralization of tokenized and cross-chain assets, allowing DeFi protocols and users to programmatically check cbBTC’s backing before interacting with it. This move fits into a broader push toward greater transparency and solvency assurances in crypto following past failures of custodial and wrapped-asset models, and positions cbBTC as a wrapped Bitcoin with verifiable on-chain backing rather than relying solely on centralized attestations.

AI-generated background, compiled from web sources — not editorial content.

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