Top-tier exchange platform Coinbase has reportedly rolled out a new asset including Ether tokens that are staked and wrapped via the crypto exchange.

Specifically, Coinbase reportedly revealed its intention of completing the listing of Coinbase Wrapped Staked ETH (cbETH) across the Ethereum network as an ERC-20 token, making it possible for customers to use their staked Ether (ETH) while earning rewards on the exchange. 

Per its website, users will reportedly have the freedom of withdrawing the tokens to Coinbase, stake them, and then wrap the ETH2 into cbETH, with the new wrapped staked token balance visible on their accounts. 

The tokens share an expected timeline for the trading introduction on Aug. 25 “if liquidity conditions are met.”

“Our hope is that cbETH will achieve robust adoption for trade, transfer, and use in DeFi applications. With cbETH, Coinbase aims to contribute to the broader crypto ecosystem through creating high-utility wrapped tokens and open sourcing smart contracts.” Coinbase stated in its cbETH white paper released in August. 

Per the white paper, cbETH will essentially operate as a compound token (cToken), given they are “most widely compatible with dApps in DeFi today, due to the fact that they are ERC-20 compliant”:

“ETH and cbETH are not pegged or expected to be interchangeable 1:1. In fact, as the underlying staked ETH continues to accrue rewards, each cbETH token is expected to represent more staked ETH, which may result in a divergence in prices for these assets over time.”

The Ethereum Foundation reportedly issued an announcement revealing the decision of activation for the network on the Beacon Chain with the Bellatrix upgrade beginning on Sept. 6, with the Merge to proof-of-stake expected before Sept. 20. 

Coinbase disclosed on Aug. 16 that it had plans down its pipeline to “briefly pause” deposits and withdrawals of ETH and ERC-20 tokens “as a precautionary measure” to handle the migration.