Coinbase is expanding its offerings by launching wrapped tokens for Cardano (cbADA) and Litecoin (cbLTC) on its Base Layer 2 network. This move aims to enhance the usage of these cryptocurrencies within the DeFi space.
Launch of Wrapped Tokens on Base
Coinbase has introduced wrapped tokens cbADA and cbLTC on its Base Layer 2 network. These tokens are backed by actual ADA and LTC assets securely held by Coinbase, with each wrapped token corresponding to one original token, ensuring full compliance.
Automatic Token Conversion
Users can send their ADA and LTC from Coinbase accounts to Base addresses and automatically receive cbADA or cbLTC. The reverse process is also supported: when users transfer cbADA or cbLTC back to Coinbase, they receive the original tokens at the same ratio.
Impact on DeFi and Network Activity
This wrapping method enables ADA and LTC tokens to interact with DeFi platforms like Aerodrome, Uniswap, and Aave. Shortly after launch, cbADA was noted to have a supply of approximately $1.7 million, while cbLTC reached nearly $1 million. Additionally, the Base network demonstrates high activity, processing around 9.4 million transactions daily.
Thus, the addition of wrapped tokens cbADA and cbLTC on Coinbase expands their utility in DeFi, creating new opportunities for developers and users.
