Coinbase has expanded its suite of wrapped assets on Base, its Ethereum layer-2 network, by introducing Cardano (ADA) and Litecoin (LTC) as cbADA and cbLTC. This move strengthens cross-chain interoperability and gives users greater access to Ethereum’s decentralized finance (DeFi) ecosystem. The newly launched tokens join previously integrated assets like Dogecoin (DOGE), XRP, and Bitcoin (BTC), reinforcing Coinbase’s mission to create a more inclusive and functional blockchain economy.
What Are Wrapped Assets?
Wrapped assets are blockchain tokens pegged 1:1 to the value of their native counterparts. In this case, cbADA represents ADA, while cbLTC mirrors LTC — both issued as ERC-20 tokens on Ethereum-compatible networks like Base. These tokens are fully backed by reserves held in custody by Coinbase, ensuring full redeemability at any time.
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This mechanism allows users to seamlessly transfer value from isolated blockchains into the rich environment of Ethereum-based applications. For example, a Cardano holder can convert ADA into cbADA and deploy it in yield-generating protocols such as Aave or Curve without leaving the security and oversight provided by Coinbase.
Enhancing Cross-Chain Utility
One of the biggest challenges in today’s fragmented crypto landscape is cross-chain compatibility. Many digital assets remain confined to their native networks, limiting their utility in broader financial ecosystems. By wrapping high-demand tokens like ADA and LTC, Coinbase enables holders to participate in lending, borrowing, liquidity provision, and other DeFi activities directly from Base.
As stated by a Coinbase spokesperson, the decision to onboard specific assets is driven by data:
- Trading volume
- Number of holders
- Market capitalization
- Platform activity
“To create an open global economy that increases economic freedom, we need to make it easy for anyone and any asset to come on-chain,” the spokesperson emphasized. “Wrapped assets remove a key point of friction by allowing customers to use more assets they already hold in new ways on-chain.”
Within days of launch, over **$2.5 million worth** of ADA and LTC had been converted into their wrapped forms — approximately $1.6 million in cbADA and $950,000 in cbLTC — according to proof-of-reserves dashboards published by Coinbase.
Building on Existing Momentum
This expansion builds upon the success of cbBTC, Coinbase’s wrapped Bitcoin product launched in September 2024. With over 45,000 BTC held in reserve — valued at nearly $5 billion — cbBTC has emerged as a credible alternative to Wrapped Bitcoin (WBTC), especially amid growing scrutiny around third-party custodianship models.
Unlike some competing wrapped tokens, cbBTC, cbADA, and cbLTC are all backed directly by Coinbase-held reserves, offering enhanced transparency and trust. Users can verify reserves independently through public attestation pages, aligning with rising demand for auditable, secure asset bridging solutions.
The integration of DOGE and XRP earlier in June 2025 set the stage for these latest additions. Now, Base supports five major non-Ethereum-native cryptocurrencies through Coinbase’s wrapped asset program, positioning it as a central hub for multi-chain engagement.
Why Base Matters
Base, developed by Coinbase, is an open-source, low-cost layer-2 scaling solution built on Ethereum. It leverages optimistic rollup technology to reduce transaction fees and increase speed while inheriting Ethereum’s robust security model.
By expanding the range of available assets on Base, Coinbase not only enhances user experience but also drives adoption of its own infrastructure. Retailers, developers, and DeFi users benefit from a richer ecosystem where diverse digital assets can interact efficiently.
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Recent partnerships — including one with Shopify to enable USDC payments on Base — highlight the platform’s growing role in real-world crypto integration. Combined with the Bitcoin rewards credit card and MiCA licensing progress in Europe, these developments signal a strategic push toward mainstream financial inclusion.
Market Reaction and Investor Confidence
The announcement has been met with strong market response. Coinbase stock (COIN) surged nearly 6% on the day of the launch and is up over 51% year-to-date, approaching what could be a record closing price. Analysts at Benchmark upgraded their price target earlier in the week, citing regulatory clarity under MiCA and accelerating stablecoin adoption as key tailwinds.
This momentum reflects growing confidence in Coinbase’s dual role: not just as a leading exchange, but as an infrastructure provider shaping the future of on-chain finance.
FAQ: Your Questions Answered
Q: What does “wrapped” mean in cryptocurrency?
A: A wrapped token is a representation of another cryptocurrency on a different blockchain. It maintains a 1:1 value peg and is backed by reserves of the original asset.
Q: Can I convert cbADA back to native ADA?
A: Yes. Coinbase allows seamless conversion between cbADA and ADA at any time, ensuring full liquidity and flexibility.
Q: Are wrapped assets safe?
A: When issued by reputable custodians like Coinbase with transparent proof-of-reserves, wrapped assets are considered secure. Always verify backing mechanisms before use.
Q: Why use cbLTC instead of native LTC?
A: cbLTC lets you use Litecoin within Ethereum’s DeFi ecosystem — enabling participation in lending platforms, DEXs, and yield farms not accessible on Litecoin’s native chain.
Q: Is there a fee to wrap or unwrap tokens?
A: Fees may apply based on network congestion and processing costs. Check current rates directly on Coinbase’s interface.
Q: How is cbBTC different from WBTC?
A: Both represent Bitcoin on Ethereum, but cbBTC is issued and custodied entirely by Coinbase, offering streamlined oversight compared to WBTC’s multi-party governance model.
Coinbase’s latest move underscores a broader industry shift toward interconnected blockchains. As DeFi continues to evolve, the ability to move value freely across ecosystems will define user experience and platform dominance.
With ADA and LTC now live on Base, users have more tools than ever to maximize asset utility — all within a secure, transparent framework backed by one of the world’s most trusted crypto platforms.
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