Cryptocurrency exchange Coinbase has announced the launch of its Coinbase Wrapped Stake ETH (cbETH) token. This is a derivative asset mined on the security of the Ethereum cryptocurrency, which is blocked in staking on the platform.

Coinbase will add support for Coinbase Wrapped Stake ETH (cbETH) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your money will be lost.

What is cbETH? Let’s dive pic.twitter.com/n3Dp4OA6HO

— Coinbase Assets (@CoinbaseAssets) August 24, 2022

cbETH is an ERC-20 standard token. The asset can be pulled from the platform and used in various DeFi protocols.

The platform actually performs the fluid stretching function. Second, it allows traders to gain additional profitability for blocking tokens based on the Proof-of-Stake algorithm.

The initiative is being implemented in anticipation of The Merge, scheduled for September 10-20.

“With cbETH, Coinbase aims to contribute to the broad crypto ecosystem”says the white paper.

If the liquidity criteria are met, trading of the asset against the US dollar will begin on August 25.

cbETH will compete with stETH from Lido Finance.

Recall that in August, American customers of Coinbase Prime had the opportunity to buy Ethereum stocks.

The company previously announced that some operations were suspended during Ethereum’s transition to PoS.

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