Coinbase Adds Cardano and Litecoin to Base Ecosystem
In Brief:
Coinbase introduced wrapped versions of Cardano (ADA) and Litecoin (LTC) on Ethereum’s Base layer-2 network, expanding its suite of cross-chain accessible assets. Trading volume for these new assets has reached approximately $3.5 million since their launch.
Elaboration:
American cryptocurrency exchange Coinbase unveiled the integration of Cardano and Litecoin as wrapped assets on its Ethereum-based protocol Base early Wednesday. The new tickers are cbADA and cbLTC, joining previously launched assets including Bitcoin, DOGE, and XRP.
These wrapped tokens, which are ERC-20 tokens, represent original ADA and LTC assets held securely. cbADA is backed 1:1 by ADA reserves, and cbLTC by Litecoin reserves, maintained by Coinbase.
The expansion allows holders of Cardano or Litecoin to utilize these assets within the more robust decentralized finance (DeFi) ecosystem of Ethereum-based protocols such as Aave and Compound. This enhances cross-chain compatibility, addressing a key limitation for native tokens on different blockchains.
According to Coinbase’s proof-of-reserves pages, about $2.5 million worth of the new ADA and Litecoin has been converted to their wrapped counterparts since launch. Specifically, $1.6 million in cbADA and $950,000 in cbLTC have been transacted.
Elsewhere, Coinbase secured a MiCA license to improve European operations, launched a Bitcoin rewards credit card, and partnered with Shopify. The company’s stock (COIN) rose nearly 6%, now trading significantly higher year-to-date.
