- Coinbase uses the Chainlink POR to verify CBBTC reserves on Ethereum and Base, increasing the transparency for $ 4.6 billion in wrapped Bitcoin.
- The Chainlink POR enables Onchain evidence in real time that the wrapped bitcoins are fully covered by BTC, which counteracts defi insurance risks.
Coinbase has taken over Chainlinks Proof of Reserve to enable an on-chain verification for CBBTC tokens worth more than $ 4.6 billion, a version of Wrapped Bitcoins that is spent on the stock exchange. The reserves that support CBBTC are now monitored independently and reported to the Ethereum and Base blockchains by decentralized oracles.
Proof of Reserves empowers users to confidently integrate cbBTC across the DeFi ecosystem.
Utilizing @chainlink Proof of Reserves on @base and @ethereum provides independent, transparent onchain verifications that cbBTC reserves are backed 1:1 by BTC.
— Coinbase Platform (@CoinbasePltfrm) May 29, 2025
The step takes place in the middle of the growing demand for transparency in decentralized finance, especially in connection with the use of synthetic and wrapped assets. It also shows that a public, automated review of reserves prevails after centralized platforms have recently failed.
The CBBTC token is intended to enable Bitcoin liquidity within the DEFI system by allowing the use of BTC in compatible applications compatible with Ethereum. In contrast to native Bitcoin, however, wrapped tokens are dependent on external custody, which brings with it the risk of undertailing.
To avoid this, Coinbase has integrated the POR system from Chainlink to ensure that each CBBTC token is covered 1: 1 by Bitcoin. The Oracle network from Chainlink feeds reserve data in Ethereum and Base and thus enables public verification. The system is decentralized, with independent nodes that regularly check the Bitcoin reserves from Coinbase and report the data on the chain.
When the reserves change, the POR mechanism automatically updates the blockchain with the new data. If the reserves remain unchanged, the system minimizes unnecessary blockchain writing processes to reduce the gas fees. This enables a cost-effective but continuous flow of reserve information that maintains transparency without affecting efficiency.
New transparency measures
Since the collapse of FTX, in which it turned out that the clients’ assets were not properly secured, the need for real-time evidence has increased. In response to this, many users and institutions have shifted their focus on protocols that offer automated and verifiable transparency.
Chainlinks POR aims to solve exactly these transparency problems that have been revealed by such collapse. In contrast to conventional financial examinations or monthly statements, PORTAUSTEDALAGED data, which are accessible to the public at all times. This model does not depend on internal reports or delayed disclosures, but instead provides a real time project that the assets exist and are intact.
Wrapped tokens like CBBTC play an important role in using Bitcoin in Defi-Lending, liquidity pools and trading platforms. However, their reliability depends on whether they are fully secured. Each gap in the reserves can lead to losses on several platforms and protocols. Chainlink Por offers an important infrastructure to reduce such risks. Defi protocols can use the POR data to check whether CBBTC is still properly secured. Intelligent contracts can even integrate POR feeds to trigger automatic reactions if the reserves fall below the required level, such as pausing certain functions or the notification of the users.
Acceptance in the entire Defi ecosystem
In addition to Coinbase, other platforms have also started to take over the Chainlink-Por. Solv Protocol now uses it to verify SolvBTC and other RWA tokens. Chainlink currently secures over $ 8.5 billion in assets through its POR-Framework. This includes around 5 billion dollars of onchain assets such as wrapped tokens and $ 3.5 billion in offchain assets such as Fiat and Treasury stocks.
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