Coinbase Launches Wrapped Cardano on Base Network for DeFi Expansion

Coin WorldThursday, Jun 26, 2025 4:57 am ET
2min read

Coinbase has introduced wrapped

(cbADA) on its Base network, aiming to expand ADA’s role in decentralized finance. The launch adds Cardano-native liquidity to Base, which already hosts a range of Ethereum-compatible DeFi protocols. By wrapping ADA for use on Base, creates new access points for users of Cardano’s native token. Wrapped ADA is backed one-to-one by ADA reserves and remains tied to the original asset’s value. Coinbase assured that users can now move their ADA into the Base ecosystem and deploy cbADA across DeFi outlets. This approach mirrors stablecoin mechanics, offering a familiar model for secure asset representation across different blockchains.

With the launch of cbADA, Base becomes a new hub for ADA-based activity. Base, while newer than many networks, holds growing liquidity pools. That provides Cardano with added exposure to active users already operating within Base-based protocols. The move also supports liquidity centralization by enabling ADA to circulate outside its native network. Coinbase has previously released wrapped versions of other tokens, establishing a template for the cbADA model. These versions allow assets to interact across different chains without compromising the backing of the original token. In cbADA’s case, the one-to-one ADA reserve enables users to maintain value while gaining access to new platforms.

The wrapped asset model provides a bridge between Cardano and other ecosystems. This expands ADA’s usability beyond its native infrastructure. Interoperability has become a key element in recent blockchain development, especially for decentralized applications requiring multi-chain integration. With cbADA available on Base, more protocols can now support ADA-linked functions. Users can engage themselves by swapping, lending, staking, and other DeFi actions without leaving the Base ecosystem. This reduces friction and allows ADA holders to participate in broader Ethereum-compatible environments. The update supports smoother movement between networks and potentially boosts participation in Cardano-linked DeFi services.

Coinbase emphasized that cbADA maintains full reserve backing, ensuring the safety of wrapped transfers. The design parallels practices already used in the stablecoin sector. Full collateralization enables transparency and control, both key concerns in cross-chain token management. The decision to host cbADA on Base connects the Cardano token to a network with rising user volume and liquidity. It also aligns with Coinbase’s broader strategy of offering wrapped tokens for network expansion. Base users gain access to a new asset, while ADA becomes more flexible for DeFi deployment.

The launch of cbADA marks a step toward greater Cardano integration within Ethereum-compatible networks. It also increases ADA’s exposure to a wider audience, helping reshape how users access DeFi services across blockchain ecosystems. Coinbase has expanded its wrapped token offerings by introducing Cardano (cbADA) and

(cbLTC) on its Base layer-2 network. This move is aimed at enhancing the utility of Cardano within the decentralized finance (DeFi) ecosystem. The wrapped tokens, cbADA and cbLTC, are designed to facilitate seamless integration with other DeFi applications, thereby broadening the use cases for Cardano and Litecoin. The introduction of cbADA and cbLTC on the Base network is part of Coinbase's broader strategy to support a wider range of cryptocurrencies and enhance their interoperability within the DeFi space. By wrapping these tokens, Coinbase enables users to leverage the benefits of Cardano and Litecoin's underlying technologies while participating in DeFi protocols. This initiative is expected to attract more users to the Cardano ecosystem, as it provides a more accessible and versatile way to interact with DeFi applications. The Base network, which serves as a layer-2 solution, is designed to improve scalability and reduce transaction costs, making it an attractive platform for DeFi applications. The integration of cbADA and cbLTC on Base is a significant step towards achieving this goal, as it allows for faster and more efficient transactions. This development is likely to foster greater adoption of Cardano and Litecoin within the DeFi community, as users can now enjoy the benefits of both networks without compromising on performance or security. In summary, Coinbase's launch of wrapped ADA and LTC on its Base layer-2 network is a strategic move to enhance the utility of Cardano within the DeFi ecosystem. By providing a more accessible and efficient way to interact with DeFi applications, Coinbase aims to attract more users to the Cardano network and foster greater adoption of its technology. This initiative is expected to have a positive impact on the overall growth and development of the DeFi space, as it promotes interoperability and innovation within the cryptocurrency ecosystem.