Coinbase launches Cardano and Litecoin wrapped tokens cbADA, cbLTC on Base

Coinbase launched wrapped tokens for Cardano (cbADA) and Litecoin (cbLTC) on its Base layer-2 network, the exchange said in a June 25 post. 

Each synthetic token is backed 1:1 by the underlying asset held in Coinbase custody, and proof-of-reserves pages list the on-chain addresses securing the collateral.

The transparency pages already show 11,364 LTC and 2,963,259.36 ADA issued on Base via Coinbase.

The release follows the early June activations of Dogecoin (cbDOGE) and XRP (cbXRP) wrapped tokens, completing the four-asset bundle the exchange previewed on May 13. 

Coinbase already issues a synthetic version of Bitcoin (cbBTC) while offering a liquid staking token for Ethereum (cbETH). Dune Analytics dashboards tracking those tokens show steady growth in circulating supply and transfer volume since their introductions.

cbBTC holds 24% of the synthetic BTC market as of June 23, while cbETH represents 7% of all ETH in staking.

Furthermore, data from L2Beat points out that Base is the second-largest layer-2 for Ethereum, with over $12 billion secured.

Custody structure and liquidity plans

Coinbase said ADA and LTC deposits reside in segregated cold storage wallets governed by the same controls applied to cbETH and cbBTC reserves. 

The exchange mints cb-tokens only after confirming incoming on-chain deposits and burn them when users redeem for native assets. Liquidity incentives on Base decentralized exchanges are expected to duplicate the cbETH model, though Coinbase did not publish a timetable for bootstrap pools.

The company added that it will publish quarterly attestations covering all synthetic assets issued under the Coinbase Wrapped label. 

The new tokens conform to the existing smart contract template, which has been audited for cbETH. During an introductory period intended to seed the supply, Coinbase will not charge conversion fees.

With cbADA and cbLTC now circulating, Coinbase offers Base users ERC-20 gateways to six of the ten largest non-stablecoins by market capitalization. The exchange said its custody unit will continue to manage redemptions and monitor collateral balances in real time.

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