The introduction of cbETH, Coinbase’s newly wrapped and staked Ethereum ERC-20 token, was announced on Wednesday as the crypto community prepares for the Ethereum merger later this month. ETH2 – the cbETH token represents ETH staked with the exchange. According to expectations, upgrading Ethereum will keep ETH2 locked until 2023. Coinbase will add support for Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds will be lost. What is cbETH? Let’s dive in 🧵👇 pic.twitter.com/n3Dp4OA6HO — Coinbase Assets (@CoinbaseAssets) August 24, 2022 Coinbase Wrapped Staked ETH on Ethereum Network In contrast, cbETH will be liquid, and users will be able to send or swap the asset. It will enable users to transfer or “give” staked ETH, exit staked ETH, and use the token as collateral in DeFi, according to Coinbase. Coinbase alerts that transfers of cbETH will only be possible on the Ethereum network. “Do not send this asset over other networks, or your funds will be lost,” it advises. The company refers to cbETH as a “utility token” to separate it from payment tokens and other assets that can be subject to securities restrictions. Although staking costs will be charged, it also states that “no expenses connected with wrapping or unwrapping cbETH.” The wrapping functionality will be “rolled out to eligible users gradually throughout the day,” according to Coinbase,...
