- Coinbase adds cbADA and cbLTC for use on its Base network
- Wrapped assets enable cross-chain DeFi access on Ethereum
- Over $2.5M in wrapped ADA and LTC minted on Base
Coinbase has enhanced its Base ecosystem to include Cardano (ADA) and Litecoin (LTC) as new wrapped assets. The assets, cbADA and cbLTC, enable the users to effectively interact with Ethereum-based decentralized finance protocols. This is coupled with an increased institutional interest and further product development by the U.S-based exchange.
Coinbase Lists Wrapped ADA and LTC to Base
The new cbADA and cbLTC are 1:1 wrapped tokens that are backed by ADA and LTC that are held in Coinbase custody. The tokens can be minted or redeemed. This seeks to provide liquidity as well as flexibility in DeFi protocols. Users can transfer their assets to Base and use them on platforms such as Aave, Compound, and Curve.
The launch comes after cbDOGE and cbXRP were listed on Base earlier this month. In 2023, the firm’s wrapped asset initiative started with cbBTC, which aimed to improve the integration of Bitcoin into Ethereum’s ecosystem. Coinbase has more than 45,000 BTC in reserves for cbBTC, which is worth about $5 billion.
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Wrapped Assets Enable cross-chain DeFi access
Cardano and Litecoin holders can now have smooth access to Base without leaving the Coinbase platform. ADA or LTC wrapped results in cbADA or cbLTC respectively, which operate on the Ethereum-compatible Base chain. The assets allow cross-chain usage and reduce transaction costs for DeFi participation.
Coinbase holds 100% reserves of each wrapped token and posts proof-of-reserve updates to make it transparent. Official statistics show that 2.9 million cbADA and more than 11300 cbLTC have already been issued. These wrapped assets are fully backed, minted on demand , and redeemable at any time.
This is in line with Coinbase’s recent move to improve its services and regulatory position in the world. The exchange obtained a MiCA license in Europe this week, which will allow it to expand services to more EU countries. It has also declared a Bitcoin rewards credit card and a stablecoin integration with Shopify to pay merchants.
COIN Price Action
The implementation of cbADA and cbLTC comes as the Coinbase (COIN) stock is on an upward trend in Nasdaq. Its shares increased almost 6% in the last 24 hours and more than 51% this year amid solid market momentum. Benchmark analysts also raised their price targets, with favorable regulation and product growth.
Coinbase continues to reinforce its presence in the cross-chain DeFi infrastructure market by increasing the number of wrapped assets. Each new addition improves liquidity in Base and makes the platform more useful. The exchange will also support additional networks as the demand for multi-chain solutions increases.
The Base network is a Layer 2 built on Ethereum, which provides scalability and low costs to users and developers. Base supports Bitcoin, XRP, DOGE, ADA, and LTC, which makes the platform cover a wide range of the most popular crypto assets. This approach enables Coinbase to connect ecosystems and make blockchain interactions.
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