• Coinbase has announced that it will suspend WBTC trading on all of its platforms starting December 19.
• Users would still be able to access their funds at any time and make withdrawals.
• Coinbase’s CbBTC has launched on Ethereum-based Arbitrum as it continues its expansion.

Coinbase announced in an X post on Tuesday that it will suspend WBTC trading on all of its platforms on December 19. Meanwhile, the exchange also revealed that its Bitcoin encapsulated token, cbBTC, was launched on Arbitrum today.

WBTC takes hit as Coinbase expands cbBTC

Cryptocurrency exchange Coinbase has revealed its latest decision to suspend all trading activity for BitGo’s WBTC Bitcoin token. The exchange claims the decision is based on the token’s failure to meet its listing standards.

Although the suspension will begin on December 19, WBTC holders can access their funds and make withdrawals on Coinbase at any time.

The company also said it has moved its order books on the token to “limit only” mode, meaning traders can only place limit orders with WBTC.

The WBTC team expressed its strong displeasure with Coinbase’s decision, stating that it has maintained good cooperation with the exchange.

“We have maintained active communication and full cooperation with all due diligence processes, including Coinbase, to ensure our product meets all compliance standards,” the WBTC team wrote in an X post on Tuesday.

The team also demanded that Coinbase reconsider its decision, saying it would answer any questions that may have justified the removal of WBTC.

Coinbase’s action may have been heavily influenced by the recent controversy surrounding WBTC custodian BitGo’s decision to enter into an association agreement with BitGlobal, which was co-founded by Justin Sun. Sun’s involvement raised concerns about the credibility of a continued decentralized structure for the WBTC.

Other members of the crypto community argued that the recent expansion of Coinbase’s wrapped Bitcoin token, cbBTC, made the exchange insecure, prompting the removal of WBTC.

cbBTC has been integrated into several blockchain platforms in recent months, including the Solana ecosystem. Coinbase announced on Tuesday that it packed Bitcoin the token has made its way into the Arbitrum network.