Coinbase Launches Wrapped ADA and LTC on Base for Enhanced DeFi Access

Coinbase has introduced wrapped versions of Cardano (ADA) and Litecoin (LTC) on its Ethereum layer-2 network, Base. The new tokens, named cbADA and cbLTC, are engineered to bolster cross-chain functionality and enhance the utility and accessibility of these assets within decentralized finance (DeFi) ecosystems. Each cbADA and cbLTC token is backed 1:1 by ADA and LTC held in Coinbase's institutional custody, ensuring that users can effortlessly transfer their assets from Coinbase to Base.

This new wrapped token aims to increase Cardano’s trade volume. It also unlocks fresh opportunities across popular decentralized exchanges like Uniswap, PancakeSwap, and Aerodrome on Base. For ADA holders, cbADA (wrapped ADA) offers a new way to participate in the growing DeFi ecosystem on Base. This is while maintaining full backing by the original ADA tokens.

The introduction of cbADA and cbLTC on Base aims to offer new opportunities for crypto trading and DeFi activities. By leveraging the ERC-20 token standard, these wrapped tokens bring ADA and LTC liquidity to the Base ecosystem, enabling users to participate in a wider range of DeFi protocols and applications. This move is part of Coinbase's broader strategy to expand the functionality and interoperability of its layer-2 network, Base.

Over 11,300 wrapped LTC and 2.9 million wrapped ADA are already circulating on Base, which has a total value locked of over $3 billion. The launch of these wrapped tokens follows the early June activations of other tokens on the Base network, further solidifying Coinbase's commitment to enhancing its DeFi offerings. The transparency pages already show 11,364 LTC and 2,963,259.36 ADA issued on Base via Coinbase, reflecting the growing interest and adoption of these wrapped tokens within the ecosystem.

The wrapped tokens are designed to be user-friendly, allowing users to send their ADA or LTC from Coinbase to Base, where it is converted into cbADA or cbLTC. This process ensures that users can easily access the benefits of DeFi while maintaining the security and reliability of Coinbase's institutional custody. The launch of cbADA and cbLTC on Base is a significant step forward in Coinbase's efforts to integrate more assets into its layer-2 network, providing users with greater flexibility and opportunities within the DeFi space.