Coinbase Launches Wrapped ADA and LTC on Base, COIN Hits New High

  • Coinbase has introduced wrapped versions of Cardano (ADA) and Litecoin (LTC) on its Ethereum layer-2 network, Base.
  • Wrapped assets are backed 1:1 by their native tokens and allow cross-chain trading and utility.
  • About $2.5 million in ADA and LTC have already been converted to their wrapped forms, cbADA and cbLTC.
  • The newest wrapped tokens join similar offerings for Dogecoin, XRP, and Bitcoin.
  • Shares of Coinbase rose nearly 6% as the company made related announcements including a licensing win in Europe.

Coinbase announced on Wednesday the launch of wrapped Cardano (ADA) and Litecoin (LTC) tokens on Base, its Ethereum-based layer-2 blockchain. The new tokens, named cbADA and cbLTC, allow users to interact with the Ethereum ecosystem using ADA and LTC.

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According to Coinbase, wrapped assets maintain a 1:1 reserve with the original tokens. This means each cbADA and cbLTC is fully backed and redeemable for the respective native currency. In total, users have wrapped about $1.6 million worth of ADA and $950,000 worth of LTC since the launch.

The company stated that “cbADA and cbLTC are ERC-20 tokens backed 1:1 by ADA and LTC held in custody by Coinbase”, according to a post on social media. These wrapped tokens make it possible for ADA and LTC holders to access decentralized finance (DeFi) protocols on Ethereum, such as Aave, Compound, and Curve.

Other wrapped tokens on Base now include cbDOGE, cbXRP, and cbBTC. The largest is cbBTC, which Coinbase introduced in September as an alternative to Wrapped Bitcoin (WBTC). Currently, cbBTC has more than 45,000 Bitcoin held in reserve, worth nearly $5 billion at recent prices.

The release comes during a period of expansion for Coinbase. The platform recently secured a MiCA license to grow its services in Europe. Other recent launches include a Bitcoin rewards credit card and a Shopify partnership for stablecoin payments.

Shares of Coinbase (COIN) climbed almost 6% on the day and are up more than 51% year-to-date, approaching an all-time high closing value. According to Benchmark analysts, the company’s recent progress marks a “transformative week” for the firm.

Coinbase has not released additional comments regarding its latest wrapped asset launches.

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