Chainlink has bridged Coinbase’s cbBTC to Monad to unlock more than $5 billion in Bitcoin-backed liquidity for decentralized finance applications.
Conclusion
- Chainlink CCIP supports cbBTC bridge from Base to Monad.
- More than $5 billion in Bitcoin-backed liquidity could flow into Monad DeFi.
- Developers get access to BTC-based lending and trading tools.
Chainlink (LINK) now supports the Coinbase Wrapped BTC bridge from Base to Monad using its Interchain Interoperability Protocol.
According to Chainlink’s announcement on March 2, the distribution opens up new avenues for Bitcoin-backed liquidity in decentralized financial applications.
cbBTC is entering the Monad ecosystem
The new currency allows users to invest cbBTC in lending, trading and structured finance products on Monad. Early adopters include Curvance and Neverland, which are launching marketplaces built around the token.
Coinbase issues cbBTC, which is backed 1:1 by Bitcoin held in custody. More than $5 billion in cbBTC is currently in circulation across networks such as Ethereum, Base, Solana, and Arbitrum.
Thanks to the integration, developers can create products that use Bitcoin as the underlying asset and benefit from Monad’s fast settlements and cheap payments. These products include derivatives linked to Bitcoin prices, deeper spot markets, automated trading routes and Bitcoin-based lending pools.
Chainlink says its CCIP system already supports more than $28 trillion in on-chain transaction value, providing a standardized security framework for on-chain transfers.
Keone Khan of the Monad Foundation said the move would give builders a strong asset to design around. Johann Eid of Chainlink Labs added that the system will allow billions of dollars in cbBTC to move across networks with institutional-level protection.
What this means for Chainlink, Coinbase and DeFi
The partnership strengthens Chainlink’s position as a leading on-chain infrastructure provider. The network controls a large part of the oracle market, which has a total value of more than 100 billion dollars.
Its scope has also been expanded through recent partnerships with institutional networks beyond retail DeFi. Coinbase continues to use cbBTC to connect traditional storage with on-chain activity.
The expansion to Monad supports its goal of providing users with more ways to earn, borrow and trade without having to sell their Bitcoin. cbBTC is already used in several lending and income platforms, some of which offer up to 3% profit.
Monad will benefit from direct access to large Bitcoin-backed liquidity pools. The network, which targets up to 10,000 transactions per second and at the subsecond end, is designed for high-frequency, capital-intensive financial applications.
With more than $5 billion of cbBTC now available to Monad, industry observers expect more activity in Bitcoin-based DeFi products, particularly in the lending, trading, and structured finance markets.
