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CoinList mints 5000 WBTC setting a single-day record for any firm

Photo of: Sangeetha Golchha
by Sangeetha Golchha

CoinList has minted its largest ever quantity of WBTC ever as the latest news reports. The CEO of CoinList Graham Jenkin has said that the demand for WBTC is surging very high because those individuals who have a great storage of Bitcoin want to put their inactive BTC to work, earn a good yield at the same do not want to give up their holdings. 

This important event occurred in two different transactions. In the first transaction a total of 1,300 Wrapped Bitcoin were minted, the ERC-20 token which is backed 1:1 by Bitcoin. The second mint was a record of 3,700 Wrapped Bitcoin as per the company CEP. So, in total 5000 wrapped Bitcoins worth about $57 million were minted. This figure is considered the largest by a single firm in any single day.

Just last month, Wrapped Bitcoin minted a record of $616 million worth of Tokenized Bitcoin in September as per the transaction data analyzed by CoinDesk. The new record achieved in September was a 160% increase over the $232 million WBTC minted in August. The record minting figure realization month over month comes as the strong OTC demand for wrapped bitcoin has not stopped and continues to remain high as per a Chicago-based firm Grapefruit Trading, one of the first OTC desks to mint WBTC through BitGo.

One of the traders at the firm said that the client’s interest also was slowly converting from BTC to WBTC. This reflected a great deal on the market’s thought process about WBTC and the growth opportunities for using pseudo-BTC in the growing Decentralized finance ecosystem.

At FTX, CEO Sam Bankman-Fried mentioned that the demand for WBTC is very important even if it is cooled off for a few months. But he believes that the client demand for wrapped Btc will sustain itself to higher levels than before in this ever-increasing space of DeFi. One of the leading merchants for wrapped Bitcoin Alameda Research has been doing really well for the last 2 months due to the increasing demand in its ITC sister concern FTX. In August alone Alameda minted $160 million worth of WBTC which was followed by $306 million minted in the month of September. 

Bitcoin holders make use of WBTC to take part in yield farming activities in DeFi without the need to give up their Bitcoin. Graham has further informed, 

“Bitcoin wealthy individuals want to put their latent BTC to work and earn yield without giving up their holdings. Liquidity pools (e.g. Uniswap) are the primary destination for WBTC,” he added.

Recently looking at the popularity and picking pace for WBTC, MakerDAO added wrapped Bitcoin as collateral. The demand for WBTC has grown right from there. While CoinList has achieved this major feat in a single day, previously, the single-day largest trade was registered by Alameda Research with 2317 WBTC being minted which was worth $25 million at that point.