Coinbase has introduced wrapped tokens for Cardano (cbADA) and Litecoin (cbLTC) on its Base Layer-2 Ethereum network. These synthetic tokens are 1:1 backed by the underlying assets securely held in Coinbase custody, with transparent proof-of-reserves addressing on-chain collateral. This launch follows the earlier introduction of wrapped Dogecoin (cbDOGE) and XRP (cbXRP), completing a four-asset bundle previewed in May.
The Base network is currently the largest Ethereum Layer-2 platform, securing over $12 billion in value locked and boasting strong market influence. The introduction of wrapped ADA and LTC enhances Cardano and Litecoin's interoperability and utility within the Ethereum DeFi ecosystem, enabling holders to trade, provide liquidity, and stake within a broader range of decentralized applications.
Coinbase maintains segregated cold storage wallets for ADA and LTC deposits, operating under stringent custodial controls similar to those employed for their wrapped ETH and BTC assets. New tokens are minted only after confirmation of on-chain deposits and are burnt upon redemption for native assets, ensuring transparency and security.
This initiative is expected to drive increased liquidity and cross-chain functionality on Base, reflecting positive market dynamics inspired by earlier successes with wrapped Bitcoin and Ethereum tokens. Coinbase plans quarterly attestations for all synthetic assets it issues and will initially waive conversion fees to seed token adoption. Currently, Base users can access ERC-20 gateways to six of the top ten largest non-stablecoins, promoting further integration of popular cryptocurrencies into decentralized ecosystems.