Coinbase has announced the upcoming launch of four new wrapped tokens on its Base Layer 2 network, introducing cbADA, cbDOGE, cbLTC, and cbXRP. These tokens are wrapped versions of Cardano (ADA), Dogecoin (DOGE), Litecoin (LTC), and Ripple (XRP), designed to operate within Coinbase's Base ecosystem.
The initiative aims to expand asset diversity on the Base network, boosting user and developer engagement by allowing these popular cryptocurrencies to be used in decentralized applications (dApps) and DeFi protocols on Base. The tokens will be backed 1:1 by their native counterparts, ensuring stability and trust in the wrapped assets.
By integrating these wrapped tokens, Coinbase is positioning Base as a competitive and scalable Layer 2 solution with broader asset offerings. This enables lower transaction fees and faster processing compared to native chains. Users could leverage cbADA, cbDOGE, cbLTC, and cbXRP for collateral, liquidity provision, and yield farming within Base-based DeFi environments.
However, Coinbase acknowledges inherent risks such as smart contract vulnerabilities, counterparty risks related to asset custody, liquidity constraints at launch, and regulatory uncertainties—especially concerning XRP. The wrapped tokens' utility relies heavily on the successful growth and adoption of the Base network.
The official launch dates are yet to be announced, allowing the community time to prepare and understand the new assets. Overall, this strategic expansion enhances Coinbase's ecosystem while giving existing holders of these assets new ways to interact within a Layer 2 environment.