The crypto landscape continues to evolve at a rapid pace, and Coinbase is at the forefront of expanding cross-chain interoperability. On Wednesday, the leading U.S.-based cryptocurrency exchange introduced two new wrapped assets—Cardano (ADA) and Litecoin (LTC)—on Base, its Ethereum Layer 2 network. This strategic expansion strengthens Base’s growing ecosystem and provides users with broader access to decentralized finance (DeFi) opportunities across multiple blockchains.
These newly launched assets—cbADA and cbLTC—join existing wrapped tokens like cbDOGE, cbXRP, and cbBTC in Coinbase’s growing portfolio of cross-chain solutions. Designed to enhance liquidity and usability, these wrapped assets are backed 1:1 by their native counterparts and can be seamlessly converted back and forth between the original blockchain and Base.
👉 Discover how wrapped assets are reshaping DeFi access on Layer 2 networks.
What Are Wrapped Assets and Why Do They Matter?
Wrapped assets are tokenized versions of cryptocurrencies that operate on a different blockchain than their native one. For example, Bitcoin (BTC) doesn’t natively support smart contracts, but when it’s “wrapped” as Wrapped Bitcoin (WBTC) or cbBTC, it becomes usable on Ethereum-based DeFi platforms.
Coinbase’s version, cbBTC, was launched in September last year as a more transparent and efficient alternative to WBTC. It allows Bitcoin holders to participate in yield-generating protocols like Aave, Compound, and Curve—platforms built on Ethereum’s robust smart contract infrastructure.
Now, with the addition of cbADA and cbLTC, Litecoin and Cardano holders can also tap into Ethereum’s powerful DeFi ecosystem without selling their original assets. This means users can stake, lend, swap, or provide liquidity using ADA and LTC derivatives directly on Base.
Seamless Integration with Base: The Ethereum L2 Advantage
Base, developed by Coinbase, is an Ethereum Layer 2 (L2) scaling solution designed to offer faster transactions, lower fees, and a smoother user experience while maintaining Ethereum’s security. By bringing Cardano and Litecoin to Base via wrapped tokens, Coinbase is effectively bridging traditionally isolated blockchains into the broader Web3 economy.
Within hours of launch, approximately $2.5 million worth of ADA and LTC were converted into their wrapped forms:
- ~$1.6 million in cbADA
- ~$950,000 in cbLTC
These figures reflect strong initial demand and signal growing interest in multi-chain asset utilization. The reserves for each wrapped token are publicly verifiable through Coinbase’s proof-of-reserves system, ensuring transparency and trust.
This move aligns with Coinbase’s broader mission: "By bringing assets to more chains, wrapped assets like cbBTC help build a more efficient, interconnected, and expansive financial ecosystem."
Expanding the Wrapped Asset Ecosystem
Coinbase’s wrapped asset suite now includes:
- cbBTC – Wrapped Bitcoin
- cbDOGE – Wrapped Dogecoin
- cbXRP – Wrapped Ripple (XRP)
- cbADA – Wrapped Cardano
- cbLTC – Wrapped Litecoin
Each token maintains a 1:1 reserve ratio with its underlying asset, allowing for frictionless conversion between chains. For instance:
- A Cardano holder can deposit ADA into Coinbase and receive cbADA on Base.
- They can then use cbADA in DeFi protocols or trade it on decentralized exchanges (DEXs) like Uniswap.
- When desired, they can redeem cbADA back for native ADA on the Cardano blockchain.
This interoperability removes traditional barriers between ecosystems and empowers users to maximize the utility of their digital assets.
👉 Learn how you can leverage wrapped tokens for cross-chain DeFi strategies.
Market Impact and Investor Confidence
The announcement coincided with positive momentum for Coinbase stock (COIN), which rose nearly 6% on the day of the launch. Year-to-date, shares have surged over 51%, approaching potential all-time highs. Analysts at Benchmark recently upgraded the company’s price target, citing what they called a “transformative week” driven by regulatory clarity and rising stablecoin adoption.
One major catalyst was Coinbase securing a MiCA license in Europe, enabling expanded services across the EU under clearer regulatory oversight. Additionally, the firm launched a Bitcoin rewards credit card and partnered with Shopify to streamline stablecoin payments for retailers—further integrating crypto into everyday financial activity.
These developments underscore Coinbase’s dual strategy: advancing technical innovation while navigating regulatory landscapes proactively.
Frequently Asked Questions (FAQ)
Q: What is the difference between native ADA/LTC and cbADA/cbLTC?
A: Native ADA and LTC exist on their respective blockchains (Cardano and Litecoin), while cbADA and cbLTC are ERC-20 tokens that run on Ethereum and Base. They are fully backed 1:1 and can be converted anytime through Coinbase.
Q: Are wrapped assets safe?
A: Yes, when issued by reputable platforms like Coinbase. Each wrapped token is backed by real reserves, and Coinbase provides public proof-of-reserves to ensure transparency and reduce counterparty risk.
Q: Can I use cbADA or cbLTC in DeFi apps?
A: Absolutely. Once you hold cbADA or cbLTC on Base or Ethereum, you can interact with popular DeFi protocols such as Aave, Compound, Uniswap, and Curve to earn yields, swap tokens, or provide liquidity.
Q: Is there a fee to convert between native and wrapped tokens?
A: Conversion fees may apply depending on network conditions and service policies. However, Coinbase aims to keep costs low to encourage adoption and seamless cross-chain movement.
Q: How does this benefit the average crypto user?
A: It increases flexibility. Instead of being locked into one blockchain, users can now deploy their favorite assets across multiple platforms—unlocking new earning opportunities, better trading options, and improved accessibility.
Q: Will more cryptocurrencies be added in the future?
A: While not officially confirmed, Coinbase has shown a clear pattern of expanding its wrapped asset offerings. Assets like Solana (SOL) or Polygon (MATIC) could be potential candidates based on ecosystem demand.
👉 Stay ahead of the next wave of cross-chain innovation—explore integrated crypto solutions today.
The Future of Interoperability
As blockchain ecosystems grow more specialized—from Cardano’s focus on sustainability to Litecoin’s fast payments—the need for seamless cross-chain communication becomes critical. Wrapped assets represent a pragmatic step toward true interoperability.
With Base emerging as a key hub for Ethereum L2 activity, Coinbase is positioning itself not just as an exchange, but as a foundational layer in the next-generation financial infrastructure. By enabling users to bring diverse assets into DeFi, the platform fosters greater inclusion, efficiency, and innovation.
In a world where siloed blockchains once limited user choice, solutions like cbADA, cbLTC, and others are breaking down walls—one wrapped token at a time.
Keywords: Coinbase, Cardano, Litecoin, wrapped assets, Base, DeFi, Ethereum Layer 2, cbADA, cbLTC