Coinbase is set to further expand its presence in the wrapped token space by introducing wrapped versions of XRP, Cardano (ADA), Dogecoin (DOGE), and Litecoin (LTC) on its Ethereum Layer 2 network, Base.
In a recent post published on May 13 through its Coinbase Assets X account, the exchange confirmed the upcoming availability of cbXRP, cbADA, cbDOGE, and cbLTC tokens on Base. While these assets are not yet live, Coinbase mentioned that a launch timeline will be disclosed at a later date.
Wrapped tokens play a crucial role in enabling assets from one blockchain to be utilized on another, which enhances ecosystem interoperability. By bringing these popular digital currencies to Base, Coinbase aims to provide users with access to lower fees, improved liquidity, and broader access to DeFi tools.
Base stands as the largest Ethereum layer-2 network, boasting a total value secured of over $15 billion, as per L2Beats data. As Coinbase prepares for the inclusion of new wrapped tokens, it cautioned users to be wary of fraudulent claims about the availability of these assets. The official Base contract addresses for these tokens will be as follows:
– cbADA: 0xcbADA732173e39521CDBE8bf59a6Dc85A9fc7b8c
– cbDOGE: 0xcbD06E5A2B0C65597161de254AA074E489dEb510
– cbLTC: 0xcb17C9Db87B595717C857a08468793f5bAb6445F
– cbXRP: 0xcb585250f852C6c6bf90434AB21A00f02833a4af
Coinbase’s venture into wrapped assets follows the success of cbBTC, a wrapped Bitcoin variant introduced on Base last year. The token was launched in response to changes in BitGo’s custody model, prompting Coinbase to offer an alternative option for Bitcoin exposure on Base through cbBTC.
Since its inception, cbBTC has seen exponential adoption and has expanded to other blockchain networks like Solana. The token’s total supply has surpassed 45,000, equivalent to nearly $4 billion, with a majority issued on Ethereum and the Base network.
Despite its growth, cbBTC still lags behind competitors in market share. According to data from Dune Analytics, WBTC holds over half the wrapped Bitcoin market with a 52.6% share, followed by BTCB on BNB Chain at 26.7%, while cbBTC accounts for approximately 16%.
As Coinbase continues to broaden its offerings in the wrapped token space, users can anticipate enhanced access to a diverse range of digital assets on the Base network, opening up new possibilities for decentralized finance applications.