In eligible regions, certain supported staked digital assets on Coinbase can be wrapped into liquid staking tokens and later unwrapped back into the underlying staked asset. Eligible liquid staking tokens held in a Coinbase account can also be unwrapped, even if they weren’t wrapped on Coinbase.
Liquid staking tokens provide flexibility to sell, transfer, or use the assets without unstaking. They can also be moved to an external wallet and traded outside the Coinbase platform.
Currently, staked ETH or SOL are eligible for wrapping and unwrapping. Availability varies by region and may be subject to limitations.
What you need to know about cbETH.
Fees | • There are no fees for wrapping staked ETH • You’ll be charged standard fees if you send or sell your cbETH |
Balance | • The number of cbETH units you receive upon wrapping is based on the ETH to cbETH conversion rate • cbETH balance is reflected on your Coinbase Wrapped Staked ETH asset page |
Conversion rates | • The conversion rate will change over time due to rewards earned on the underlying staked ETH •The ratio of staked ETH units underlying the total supply of cbETH |
Price | • The price of cbETH reflects the price of the underlying staked ETH plus any accrued rewards • The price of cbETH and staked ETH will likely differ because they trade on a wide range of crypto exchanges and their market prices can deviate • The market may value cbETH less than the underlying staked ETH |
Rewards | • Rewards are earned but not directly through Coinbase |
Available transactions | • Buy cbETH directly on the Coinbase exchange • Sell for local currency • Convert into available crypto • Send/receive off-platform to/from a self-custodied wallet • Unwrap your cbETH for staked ETH |
Sell or send | • You won't be able to unwrap and/or redeem your cbETH for staked ETH • You transfer the ownership of the token and underlying staked ETH value |
Taxes | • At this time there is no official guidance from tax authorities available. In the reports we prepare for you, we carry the cost basis of your staked ETH forward and don’t recognize a disposition. • Although wrapping and unwrapping staked ETH may not be considered a taxable event, selling cbETH (e.g. for cash) is viewed as a standard crypto sell which is a taxable event. |
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