Chainlink connects Coinbase cbBTC to Monad DeFi

Chainlink enabled Coinbase cbBTC to connect Monad, unlocking over $5B in Bitcoin-backed liquidity for decentralized financial applications.

Chainlink (LINK) now supports chaining of Coinbase Wrapped BTC from Base to Monad using the Cross-Chain Interoperability Protocol.

According to Chainlink’s March 2 announcement, the release will open new avenues for Bitcoin-backed liquidity across established financial applications.

cbBTC enters the Monad ecosystem

The new bridge makes it possible for users to use cbBTC for lending, trading, and structured financial products on Monad. Early adopters include Curvance and Neverland, which introduced markets built around the token.

Coinbase issues cbBTC, which is backed 1:1 by Bitcoin held in stock. More than $5 billion in cbBTC is currently distributed across networks such as Ethereum, Base, Solana, and Arbitrum.

Thanks to the integration, developers can build products that use Bitcoin as the underlying asset and benefit from Monad’s fast payments and cheap payments. These products include derivatives linked to Bitcoin prices, deep markets, automated trading routes, and Bitcoin-based lending pools.

Chainlink says its CCIP system has already supported more than $28 billion in on-chain transaction value, providing a common security framework for cross-chain transfers.

Keone Hon of the Monad Foundation said the move gives builders a solid material to design around. Johann Eid of Chainlink Labs added that the system allows billions of dollars in cbBTC to move across networks with institutional distance protection.

What does this mean for Chainlink, Coinbase, and DeFi

The partnership strengthens Chainlink’s position as a leading provider of cross-chain infrastructure. The network controls a large portion of the oracle market, with over $100 million in total secured value.

Its reach has expanded beyond retail DeFi through recent collaborations with institutional networks. Coinbase continues to use cbBTC to connect traditional storage with on-chain activity.

Monad’s expansion supports its mission of giving users more ways to earn, borrow, and trade without selling their Bitcoin. cbBTC is already being used in several lending and yielding platforms, with some offering returns of up to 3%.

Monad will benefit from direct access to large pools of Bitcoin-backed liquidity. The network, which supports up to 10,000 transactions per second and sub-second completion, is designed for high-frequency investments and capital-intensive applications.

With $5 billion in cbBTC now accessible to Monad, industry watchers expect high activity in Bitcoin-based DeFi products, especially in lending, trading, and structured financial markets.