“We hope that cbETH will achieve strong adoption for trading, transfer and use in decentralized finance applications,” the crypto exchange said.

Coinbase has launched a new asset where Ethereum tokens are pledged and offered through a cryptocurrency exchange.

In an announcement on Wednesday, Coinbase said it will list Coinbase Rapid Stack Ethereum (cbETH) on the Ethereum network as an ERC-20 token, allowing customers to use their Ethereum (ETH) tokens while earning rewards on the exchange. According to their website, users can withdraw tokens to Coinbase, share them and then convert ETH2 to cbETH, which shows the balance of the new token in their account. The tokens are expected to be available for trading on August 25 “if the liquidity conditions are met.”

“We hope cbETH will achieve robust adoption for trading, transfer, and use in decentralized finance applications,” Coinbase said in the official cbETH report released in August, adding, “With cbETH, Coinbase aims to contribute to the broader cryptocurrency ecosystem by creating High-tokens.” Covered interest and open source smart contracts.

cbETH will primarily function as a composite token, or cToken, because it is “widely compatible with decentralized applications in today’s decentralized finance due to the fact that it is ERC-20 compatible”:

“Ethereum and cbETH are not correlated or expected to be interchangeable. In fact, as Ethereum’s core mortgages continue to receive rewards, each cbETH token is expected to represent an Ethereum pawn, which could lead to a variance in the prices of these assets over time.”