Coinbase Launches Wrapped Tokens on Base Network

Coinbase is set to launch wrapped versions of several popular cryptocurrencies on its Ethereum Layer 2 network, Base. The exchange announced the upcoming availability of cbXRP, cbADA, cbDOGE, and cbLTC tokens in a post published on May 13 via its Coinbase Assets X account. These wrapped tokens will allow users to leverage assets from one blockchain on another, enhancing interoperability within the ecosystem.

Wrapped tokens are designed to bring the benefits of one blockchain to another, offering users lower fees, better liquidity, and broader access to decentralized finance (DeFi) tools. By introducing these wrapped tokens on Base, Coinbase aims to provide its users with access to these popular digital currencies while enhancing the overall user experience.

Base, the largest Ethereum layer-2 network, has a total value secured of more than $15 billion. The launch of these wrapped tokens is expected to further boost the network's utility and attract more users. However, Coinbase has cautioned users to be wary of fake claims about the availability of these tokens. The exchange has provided official Base contract addresses for these assets to ensure users can verify the authenticity of the tokens.

Coinbase’s move into wrapped assets follows the success of its cbBTC, a wrapped Bitcoin version launched on Base last year. The cbBTC token was introduced in response to changes in BitGo's custody model for WBTC, prompting Coinbase to offer an alternative for Bitcoin exposure on Base. Since its launch, cbBTC’s adoption has surged, with its total supply exceeding 45,000, equivalent to nearly $4 billion. Most of these tokens were issued on Ethereum and the Base network, although cbBTC still trails competitors like WBTC and BTCB in market share.

Despite the growth of cbBTC, it still lags behind other competitors in the wrapped Bitcoin market. According to data from Dune Analytics, WBTC currently controls over half the wrapped Bitcoin market with a 52.6% share, while BTCB, issued on BNB Chain, follows at 26.7%. cbBTC accounts for around 16% of the market share. This indicates that while cbBTC has gained traction, there is still room for growth and competition in the wrapped token space.