Coinbase Introduces New Utility Token cbETH Before The Merge
Despite being entangled in many legal clutter, Coinbase is still active when it comes to launching a liquid staking token for Ethereum (cbETH) before The Merge officially takes place.
As the crypto world prepares for the Ethereum merge next month, popular crypto exchange Coinbase announced on August 24 the launch of cbETH, its new wrapped and staked Ethereum ERC-20 token.
Coinbase Wrapped Staked ETH (cbETH) is a utility token that represents ETH2, which is ETH staked through this exchange. cbETH can be sold or sent off-platform, while ETH2 will remain locked-up until a future protocol upgrade. Staking is pledging an asset to a network to help it validate transactions, usually for a monetary return or rewards.
In a help center article, Coinbase said that customers who stake ETH on the exchange will receive the cbETH ERC20 utility token. This exchange said the new token is a liquid representation of staked ETH.
Holders of staked ETH or ETH2 can “wrap” their ETH2 and receive cbETH through the Coinbase website, adding that wrapping functionality will be “rolled out to eligible users progressively throughout the day.”
The company ended its Twitter thread by saying that once this asset is sufficiently supplied, trading of the cbETH-USD pair will launch in phases with support for cbETH restricted in some jurisdictions.
Currently, the exchange is facing a lot of legal trouble related to the investigation by US regulators for allegedly listing unregistered securities and insider trading.
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