26.06.2025 17:43

Coinbase significantly expanded its Base network's capabilities on June 26th by introducing wrapped versions of Cardano (cbADA) and Litecoin (cbLTC). These ERC-20 tokens, now available on Coinbase's Ethereum layer-2 scaling solution, Base, provide seamless access to the vibrant decentralized finance (DeFi) ecosystem built on Ethereum for ADA and LTC holders, all without leaving the familiar Coinbase platform.

This strategic move ensures that holders of Cardano and Litecoin can directly utilize Ethereum-based DeFi applications, enhancing the accessibility and usability of these popular cryptocurrencies. Crucially, each cbADA and cbLTC token maintains a one-to-one backing with the corresponding underlying cryptocurrency, securely stored in Coinbase's segregated cold storage wallets. Transparency is ensured through publicly available proof-of-reserves data, currently showcasing reserves of 11,364 LTC and 2,963,259.36 ADA.

Coinbase employs a straightforward minting and burning mechanism for these wrapped tokens: cb-tokens are created upon verified deposits of the native assets and subsequently destroyed when users redeem them, guaranteeing a frictionless process. Furthermore, Coinbase is waiving conversion fees during an initial promotional period, adding further incentive for adoption. This launch successfully concludes the four-asset expansion plan that Coinbase announced on May 13th, building upon the previous June releases of cbDOGE and cbXRP.

The addition of cbADA and cbLTC to Coinbase's existing offerings of cbBTC and cbETH provides Base users with ERC-20 access to six of the top ten largest non-stable cryptocurrencies by market capitalization. Base itself continues to thrive, currently boasting over US$12 billion in total value locked (TVL) according to L2Beat, solidifying its position as the second-largest Ethereum layer-2 network. This information is compiled from internet sources.