Simply put
- Coinbase has introduced Cardano (ADA) and Litecoin (LTC) to its suite of wrapped assets within the Ethereum Network Base.
- The wrapped assets are backed 1:1 with their native tokens and aim to enhance cross-chain functionality.
- Coinbase’s shares increased by nearly 6% that day, marking their highest closing price ever.
American cryptocurrency exchange Coinbase rolled out new wrapped assets on Wednesday, allowing Cardano and Litecoin to be traded on the company’s Ethereum Layer-2 network.
Now available as CBADA and CBLTC, Cardano (ADA) and Litecoin (LTC) have joined other wrapped assets like Ripple (XRP) and Dogecoin (Doge), which were previously introduced at the base.
The wrapped versions of these tokens, held in a 1:1 reserve with their native counterparts, can be seamlessly redeemed. Essentially, if a user has ADA on Coinbase, they can easily trade for CBADA to use on the base or vice versa.
CBADA and CBLTC are currently live @base. CBADA and CBLTC are ERC-20 tokens backed by ADA and LTC, held 1:1 by Coinbase.
This integration simplifies access for Cardano and Litecoin holders to Ethereum’s extensive decentralized finance (DeFi) ecosystem, allowing participation in popular protocols like Aave, Composite, and Curves.
Since the launch of these wrapped assets, around $2.5 million in ADA and LTC has been wrapped. The specific values show $950,000 in CBADA and CBLTC as indicated on their respective proof-of-reserves pages.
This move follows the introduction of CBBTC, the company’s largest wrapped asset launched last September. This initiative was aimed at making Bitcoin more accessible within the Ethereum DeFi ecosystem, replacing the widely used Wrapped Bitcoin (WBTC).
Coinbase noted that these packaged assets are crucial for creating a more efficient, interconnected financial ecosystem.
Currently, they have over 45,000 Bitcoin reserved for CBBTC products, valued at nearly $5 billion based on current Bitcoin prices.
Coinbase plans further updates to its offerings, including improvements to its MICA licenses to expand services in Europe. Recently, they also launched Bitcoin rewards credit cards and partnered with Shopify to enhance Stablecoin transactions in retail.
Coinbase’s stock price has increased by nearly 6%, edging closer to a record high of over 51%. This comes amid a “transformational week” recognized by analysts, highlighting positive regulatory developments and steady growth.
Coinbase did not respond immediately to requests for comments regarding the launch of the new wrapped assets.
