Chainlink has enabled Coinbase cbBTC bridging to Monad, unlocking over $5B in Bitcoin-backed liquidity for decentralized finance applications.
Chainlink (LINK) is now supporting the bridging of Coinbase Wrapped BTC from Base to Monad using its Cross-Chain Interoperability Protocol.
According to Chainlink’s March 2 announcement, the rollout will open up new pathways for Bitcoin-backed liquidity across decentralized finance applications.
The new bridge makes it possible for users to deploy cbBTC in lending, trading, and structured finance products on Monad. Early adopters include Curvance and Neverland, which are launching markets built around the token.
Coinbase issues cbBTC, which is backed 1:1 by Bitcoin that is kept 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 build products that use Bitcoin as a base asset and benefit from Monad’s fast settlement and cheap fees. These products include derivatives connected to Bitcoin prices, deeper spot markets, automated trading routes, and lending pools based on Bitcoin.
Chainlink says its CCIP system has already supported over $28 trillion in on-chain transaction value, offering a standardized security framework for cross-chain transfers.
Keone Hon of the Monad Foundation said the move gives builders a strong asset to design around. Johann Eid of Chainlink Labs added that the system allows billions of dollars in cbBTC to move across networks with institutional-grade protection.
The partnership strengthens Chainlink’s position as a leading provider of cross-chain infrastructure. The network controls a sizable portion of the oracle market, with over $100 billion in total value secured.
Its reach has also been extended beyond retail DeFi through recent partnerships with institutional networks. Coinbase continues to use cbBTC to connect traditional custody with on-chain activity.
The expansion to Monad supports its goal of giving users more ways to earn yield, borrow, and trade without selling their Bitcoin. cbBTC is already used in several lending and yield platforms, with some offering returns of up to 3%.
Monad will benefit from direct access to large Bitcoin-backed liquidity pools. The network, which targets up to 10,000 transactions per second and sub-second finality, is designed for high-frequency finance and capital-intensive applications.
With more than $5 billion in cbBTC now able to reach Monad, industry watchers expect higher activity in Bitcoin-based DeFi products, especially in lending, trading, and structured finance markets.
