Coinbase Issues Wrapped Staked Ethereum (cbETH) As Merge Approaches

Major cryptocurrency exchange Coinbase Global Inc COIN has introduced a new ERC-20 token to represent staked Ethereum ETH/USD ahead of the Merge.

What Happened: The cryptocurrency exchange said on Wednesday that it had added support for Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network.  

The new token, which represents ETH staked through Coinbase, will let users sell, spend and use their staked ETH while earning rewards. cbETH can be sold or sent off-platform, as the underlying asset that represents ETH2 continues to be locked up in the deposit contract, said Coinbase.

See Also: HOW TO STAKE ETHEREUM ON COINBASE

It is worth noting that the price of cbETH will not follow the price of ETH 1:1, but instead take a value representing staked ETH and its accrued staking interest.

Coinbase in a whitepaper said it foresees much utility for cbETH in the crypto ecosystem, including its potential use as collateral in DeFi and in transferring staked ETH.

See Also: Ethereum Merge Date Gets Moved Up By 4 Days: Why The Change Is Significant

Price Action: COIN shares were traded 0.17% higher aftermarket. At press time, ETH was trading at $1,679, up 2% over 24 hours as per data from Benzinga Pro.

Posted In: ERC-20EthereumCryptocurrencyNewsMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.