Coinbase Launches cbADA on Base Network for DeFi Integration

Coinbase has introduced a new token, cbADA, on its Ethereum Layer-2 network Base, enabling Cardano users to explore decentralized finance (DeFi) applications without leaving the Base network. This move is part of a broader effort to bridge different blockchain networks and expand the use cases for existing crypto assets through Coinbase DeFi integration.

Tokenized ADA, or cbADA, is a representation of Cardano’s native asset, ADA, that can be used on Ethereum-compatible platforms. Each cbADA token is fully backed by real ADA held in Coinbase’s custody, ensuring that for every cbADA issued, 1 ADA is securely stored. This innovation allows users to trade, lend, and interact with DeFi apps on Base without moving ADA out of Coinbase, thereby bringing Cardano holders into broader DeFi ecosystems like Uniswap, Curve, and Aave.

Users can engage in various activities with cbADA on Base, including trading on Base-based exchanges like Aerodrome, providing liquidity in DeFi pools to earn rewards, lending or borrowing using cbADA on platforms like Aave, and wrapping or unwrapping ADA using Coinbase’s direct support. Coinbase has simplified the process by integrating cbADA into Base Layer 2, which is designed for fast, low-cost DeFi interactions. Users can convert their ADA to cbADA and vice versa without needing separate bridging services or additional tools.

Coinbase provides clear proof-of-reserve to back cbADA, with over 2.96 million ADA currently locked in Coinbase custody to support cbADA tokens in circulation. The smart contract for cbADA is deployed on Base and visible on blockchain explorers, adding transparency to the system. This model is similar to Coinbase’s other wrapped tokens, such as cbETH, cbDOGE, and cbXRP, all aiming to connect different crypto networks under one DeFi environment.

The Base network has quickly become the second-largest Ethereum Layer-2 solution, with over $12 billion in total value locked (TVL). This growth has been accelerated by Coinbase DeFi integration, which brings significant assets like ADA into Ethereum-compatible ecosystems. By adding DeFi-enabled ADA to Base, Coinbase is increasing liquidity and utility for both ADA and the Base ecosystem. More assets mean more trading pairs, activity, and a healthier DeFi environment. Users can benefit from faster transactions, lower fees, and a growing list of supported tokens on Base. Developers can also build DeFi apps that support cbADA, helping create better tools and services for Cardano holders.

Launching tokenized ADA on Base is a significant step in making ADA more flexible and valuable. Users can now enjoy DeFi tools, lending, and trading without leaving Coinbase or Cardano. This integration also signals a bigger trend where platforms are creating cross-chain tools to make crypto more connected. As more tokens become available in wrapped formats, users will get better access to services and more control over their assets.