Coinbase has expanded its wrapped assets offerings on the Base network, introducing Cardano (ADA) and Litecoin (LTC) to join existing tokens like Dogecoin (DOGE), XRP, and Bitcoin (BTC). This move enhances cross-chain functionality for users within the Ethereum ecosystem.
Key Highlights
- New Wrapped Assets: cbADA (Cardano) and cbLTC (Litecoin) now live on Base.
- 1:1 Reserve Backing: Tokens are fully backed by native assets held in custody by Coinbase.
- DeFi Integration: Enables Cardano/Litecoin holders to access Ethereum's DeFi protocols (Aave, Compound, Curve).
- Market Impact: COIN shares up 6%, nearing all-time high.
How Wrapped Assets Work
Wrapped assets bridge blockchain ecosystems by representing non-native tokens in a compatible format (e.g., ERC-20). Users can:
- Swap native ADA/LTC for cbADA/cbLTC on Coinbase.
- Utilize wrapped tokens on Base for lending, borrowing, or trading.
- Redeem wrapped assets 1:1 for original tokens at any time.
"Wrapped assets remove friction by letting customers use held assets in new on-chain ways."
— Coinbase Spokesperson
Adoption Metrics
| Asset | Wrapped Volume (USD) | Reserve Proof Link |
|---|---|---|
| cbADA | $1.6M | Coinbase Reserve |
| cbLTC | $950K | Coinbase Reserve |
| cbBTC | ~$5B | Launched September 2024 |
Selection Criteria
Coinbase evaluates assets based on:
- Platform holdings
- Holder count
- Trading volume
- Market cap
- Ecosystem activity
👉 Explore Base Network DeFi Opportunities
Recent Coinbase Developments
- MiCA License: Approved for EU service expansion.
- Bitcoin Credit Card: Launched rewards card.
- Shopify Partnership: Enabled stablecoin payments via Base.
FAQs
Q: What are wrapped assets?
A: Tokens pegged 1:1 to native cryptocurrencies, enabling cross-chain functionality.
Q: How do I wrap my ADA/LTC?
A: Use Coinbase's swap interface to convert to cbADA/cbLTC.
Q: Are wrapped assets safe?
A: Yes, they're backed by audited reserves held by Coinbase.
Q: What DeFi protocols support cbADA/cbLTC?
A: Major platforms like Aave and Compound accept wrapped assets.