Coinbase has launched a wrapped version of ADA on Base, a move designed to unlock a wave of decentralized finance (DeFi) functionalities for Cardano. The latest launch extends Coinbase’s streak of rolling out wrapped assets, bring it one step closer to unifying ecosystem liquidity.
Coinbase Unfurls cbADA With Fully Backed Reserves
US-based exchange Coinbase has unveiled cbADA, a representation of Cardano’s native token on Ethereum L2 chain Base. According to a X post by Coinbase Assets, cbADA is fully backed 1:1 by ADA held in Coinbase custody with transparent proof-of-reserves.
Right off the bat, the wrapped version of ADA on Base will offer users a range of DeFi functionalities. cbADA will support the trading and deployment of Cardano-based liquidity across decentralized exchanges on Base.
For example, leaning on cbADA, users can perform DeFi functionalities like lending and providing liquidity on PancakeSwap, Aerodrome, and Uniswap. Traditionally, Cardano does not natively support the DEXs but wrapping ADA to an ERC-20 standard, users can explore DeFi utility beyond the Cardano blockchain.
Coinbase also announced a wrapped version of Litecoin’s native token, cbLTC, unveiling similar functionalities. The annoucement comes on the heels of Coinbase stock rallying to reach a four-year high as analysts predict an incoming price pump.
This is a developing story.
