The cryptocurrency exchange Coinbase has announced the launch of two new wrapped tokens — cbADA and cbLTC. These assets are now available on the company’s second-layer network, Base. The new tokens are an extension of the wrapped asset line on the platform, which already includes cbBTC, cbXRP, and cbDOGE.
This is reported by Business • Media
Wrapped Tokens: Purpose and Features
cbADA and cbLTC are tokenized versions of the cryptocurrencies Cardano (ADA) and Litecoin (LTC). Each is fully backed by the corresponding amount of coins held in Coinbase accounts. At the time of publication, 11,305 cbLTC and 2.9 million cbADA have already been issued on the Base network.
The launch of these tokens allows users to utilize Cardano and Litecoin in various DeFi protocols within the Base ecosystem. Specifically, decentralized exchanges Aerodrome and Uniswap, as well as lending platforms Aave, Compound, and Morpho, have already provided support.
Market Reaction and Prospects
It is worth noting that such solutions are based on the principle of locking the original coins of Cardano and Litecoin on the exchange, followed by the issuance of their wrapped versions on the Base network. This significantly expands the possibilities for using assets in DeFi services while maintaining their liquidity and reliability.
However, the launch of wrapped tokens by Coinbase has not been without controversy. In particular, the company BiT Global, which currently manages wrapped Bitcoin (wBTC), once filed a lawsuit against Coinbase. Ultimately, this lawsuit was withdrawn, and the disputes between the parties were resolved.
“Notably, Coinbase’s efforts to launch wrapped tokens initially faced criticism. BiT Global, which now manages wrapped Bitcoin (wBTC), even filed a lawsuit against the exchange, but ultimately withdrew it.”