By: Isha Das
Coinbase, a leading cryptocurrency exchange, has launched wrapped tokens for Cardano (cbADA) and Litecoin (cbLTC) on its Base layer-2 network. This initiative follows a previous rollout of wrapped tokens for Dogecoin (cbDOGE) and Ripple’s XRP (cbXRP), marking the completion of the four-asset bundle originally announced in May. The move is part of Coinbase's strategy to expand its offerings and cater to a broader user base.
The newly launched synthetic tokens are backed on a 1:1 basis by the respective cryptocurrencies held in Coinbase’s custody. The transparency of the Coinbase system is underscored by their proof-of-reserves pages that transparently display the on-chain addresses securing these wrapped tokens. According to reports, some 11,364 LTC and 2,963,259.36 ADA have been issued via Coinbase’s Base.
In addition to being a significant update for Cardano and Litecoin holders, this action enhances Coinbase’s ecosystem alongside existing assets like Bitcoin (cbBTC) and Ethereum (cbETH). Coinbase provides a liquid staking token for Ethereum, and its synthetic bitcoin token holds a significant share in the synthetic BTC market. The layer-2 Base is touted as the second-largest scaling solution for Ethereum, managing over $12 billion in secured assets.
Coinbase ensures that all ADA and LTC deposits are securely held in segregated cold storage wallets, governed by rigorous controls. Liquidity incentives similar to those for cbETH are anticipated on Base’s decentralized exchanges, albeit without a fixed timeline for implementation. The initial rollout also features an introductory offering of waived conversion fees to encourage engagement and adoption.