Coinbase Launches cbADA and cbLTC on Ethereum Layer 2 Base

Coinbase has launched wrapped versions of Cardano’s ADA and Litecoin’s LTC tokens on the Ethereum Layer 2 network Base. The new tokens, cbADA and cbLTC, are ERC-20 tokens backed 1:1 by ADA and LTC held in custody by Coinbase. This move allows users to leverage non-Ethereum tokens across a broader range of decentralized finance (DeFi) applications, enhancing cross-chain utility.

With the introduction of cbADA and cbLTC, Coinbase is providing new opportunities for ADA and LTC holders to engage in Ethereum-native DeFi while maintaining custody security and transparent backing through proof-of-reserves. The wrapped tokens are backed 1:1 by ADA and LTC stored in Coinbase’s institutional custody. Users can send their ADA or LTC from Coinbase to Base, where it is automatically converted to the respective wrapped version. When users send cbADA or cbLTC back to Coinbase, the wrapped tokens are redeemed 1:1 for the original ADA or LTC, ensuring transparency and parity.

These wrapped tokens significantly increase the utility of Cardano (ADA) and Litecoin (LTC), as holders can now use them across major Ethereum-based DeFi platforms that were previously inaccessible to the native coins. Within 24 hours of launch, cbADA saw a supply of approximately $1.7 million, while cbLTC reached nearly $1 million, indicating early adoption by users eager to bring their assets into DeFi. These figures, while modest compared to Coinbase’s earlier wrapped tokens like cbBTC, which has amassed over $4.9 billion in supply, represent a promising start for ADA and LTC integration into Ethereum’s growing Layer 2 environment.

The addition of cbADA and cbLTC brings the total number of wrapped tokens on Base to five, including previously launched cbBTC, cbXRP, and cbDOGE. Base, now the leading Ethereum Layer 2 network by daily transactions and active addresses, provides a robust infrastructure for wrapped assets to thrive. As ADA and LTC begin circulating within Base-based DeFi protocols, traders will be closely monitoring whether the increased utility can drive demand and help reverse the recent downward trend in prices.

Coinbase’s launch of cbADA and cbLTC also coincides with growing excitement within the Cardano ecosystem, driven in part by Midnight’s upcoming Glacier Drop airdrop. Midnight, a Cardano privacy-focused sidechain, is preparing to distribute its governance token NIGHT, which users can earn by interacting with the Cardano network. This event has already sparked a surge in wallet activity and community engagement, with significant mentions on social media platforms. Meanwhile, speculation around the potential for a Cardano ETF has gained traction, with predictions suggesting a high likelihood of approval. These factors are contributing to renewed interest in ADA despite recent price struggles and declining open interest in derivatives markets.