Coinbase is expanding its wrapped token lineup, bringing Cardano (ADA) and Litecoin (LTC) to its Base network. What does this mean for DeFi?

Coinbase, Wrapped Tokens, Cardano & Litecoin: A New Era for DeFi?

Coinbase is making waves in the DeFi space with its expansion of wrapped tokens on the Base network. The addition of Cardano (ADA) and Litecoin (LTC) as wrapped tokens (cbADA and cbLTC) marks a significant step in making diverse assets accessible within the Ethereum ecosystem.

Coinbase Completes Wrapped Token Rollout

Coinbase recently completed a four-token rollout, adding cbADA and cbLTC to its Base layer-2 network. This follows the earlier launches of cbDOGE and cbXRP. These tokens are backed 1:1 by the underlying assets held in Coinbase custody, ensuring transparency with publicly displayed proof-of-reserves pages.

What are Wrapped Tokens and Why Should You Care?

Wrapped tokens bring assets from other blockchains onto Ethereum-compatible networks like Base. This allows users to utilize assets like Cardano and Litecoin in decentralized applications (dApps), such as lending platforms and decentralized exchanges (DEXs). Base offers faster and cheaper transactions compared to Ethereum’s main network, making it an attractive option for DeFi enthusiasts.

Base as a Growing Layer-2 Platform

Base is now the second-largest Ethereum layer-2, with over $12 billion in total value secured. The addition of multi-asset synthetic tokens enhances its role as a hub for cross-chain liquidity and on-chain utility. Coinbase aims to make the onchain economy more accessible, regardless of the assets users hold.

Looking Ahead: Coinbase System Upgrade

Keep an eye out for a scheduled Coinbase system upgrade on July 19, 2025. While trading, deposits, and withdrawals may be temporarily unavailable, your accounts will still be accessible. Also, Horizen (ZEN) will be transitioning to an ERC-20 token on Base. Remember not to deposit, transfer, or trade ZEN during the migration window, as any deposits during this period (July 16 to July 25) will be non-recoverable.

Final Thoughts

Coinbase's push into wrapped tokens is a game-changer, bringing more assets into the DeFi fold and making Base a more attractive platform. By steadily expanding its wrapped asset offerings, Coinbase is bringing some of the most popular coins into Ethereum’s DeFi world. It adds real value for users who want to do more with the assets they already own while also making Base a more useful and inclusive platform. So, buckle up, crypto enthusiasts – the future of DeFi is looking brighter (and more diverse) than ever!