cbADA and cbLTC represent fully collateralized, wrapped versions of Cardano (ADA) and Litecoin (LTC). Each token is backed 1:1 by the respective underlying asset held in Coinbase’s custodial accounts. As of this writing, 11,305 cbLTC and 2.9 million cbADA have been issued on Base, with Coinbase’s previous launches of wrapped Bitcoin, XRP, and Dogecoin laying the groundwork for unified DeFi liquidity.
This approach—locking native ADA and LTC on Coinbase and minting wrapped tokens on Base—allows these assets to be used across key DeFi protocols such as Aerodrome, Uniswap, Aave, Compound, and Morpho. Users can now leverage cbADA and cbLTC for trading, lending, and liquidity provision within the Base network, boosting utility and capital efficiency for Cardano and Litecoin holders.
The strategy follows the model of wrapped tokens, such as wBTC, which have become foundational to DeFi infrastructure. However, Coinbase’s initial rollout of wrapped assets was not without controversy. BiT Global, current manager of wrapped Bitcoin (wBTC), previously filed a lawsuit challenging Coinbase’s wrapped token initiatives, though the case was eventually withdrawn.
Coinbase’s Push for DeFi Interoperability
By expanding the availability of major crypto assets in wrapped format on Base, Coinbase is positioning its L2 as a hub for DeFi innovation. The ability to use assets like ADA and LTC in lending markets and automated market makers (AMMs) breaks down silos and increases on-chain liquidity, further strengthening Base’s appeal to developers and traders.
The move aligns with the broader trend of integrating non-Ethereum assets into the DeFi sector, offering investors and users a seamless experience without requiring native chain interactions.