Coinbase Releases Wrapped Cardano and Litecoin Tokens
Date: 2025-06-27 Author: Henry Casey Categories: BUSINESS
The wrapped cbADA and cbLTC tokens are digital assets that are fully backed by the corresponding amount of original coins stored in Coinbase accounts. Currently, there are over 2.9 million cbADA and over 11 thousand cbLTC circulating in the Base ecosystem. Previously, this platform has introduced wrapped versions of such cryptocurrencies as Bitcoin (cbBTC), XRP (cbXRP), and Dogecoin (cbDOGE).
The idea behind creating wrapped tokens is to enable the use of original cryptocurrencies in DeFi protocols operating on the Base network. Thanks to this, Cardano and Litecoin owners can use their assets on decentralized exchanges Aerodrome and Uniswap, as well as on lending and borrowing platforms Aave, Compound and Morpho, expanding the range of available financial transactions.
The principle of operation of wrapped tokens is to block a certain number of original coins on exchange accounts and issue a corresponding number of tokens in the second-layer network. This avoids double spending of assets and maintains full security.
It is worth noting that Coinbase's initiative to issue wrapped tokens initially drew criticism from competitors. In particular, BiT Global, the company that manages wrapped bitcoin (wBTC), even filed a lawsuit against Coinbase, but later withdrew its claims.
The expansion of the range of wrapped tokens indicates Coinbase's desire to strengthen its position in the DeFi ecosystem and create convenient tools for users who want to integrate their assets into decentralized financial services.
The release of cbADA and cbLTC thus opens up new opportunities for Cardano and Litecoin holders, allowing them to use cryptocurrencies not only as a store of value, but also as assets for trading, lending, and participating in various financial protocols on the Base network.
