Coinbase Launches Wrapped XRP and DOGE on Base
Coinbase, a U.S.-based cryptocurrency exchange, has launched two new wrapped assets, cbXRP and cbDOGE, on its Base Layer 2 Ethereum network. These tokens are backed 1:1 by the original XRP and DOGE, which are securely held by Coinbase. The wrapped assets are designed to enable their integration into decentralized finance (DeFi) ecosystems on the Base network. A spokesman stated that this launch enhances Coinbase's offerings by providing a more inclusive platform for on-chain economy participation. Within 24 hours of launch, significant volumes of these tokens were already issued. This initiative is expected to bolster Base's competitiveness by offering reduced transaction costs and increased processing speeds for DeFi users. Future plans include launching cbLTC and cbADA, while cbBTC already boasts a market cap of $4.7 billion.
FAQ
❓ What are wrapped tokens?
Wrapped tokens like cbXRP and cbDOGE are digital assets backed 1:1 by their native counterparts, allowing integration into new blockchain ecosystems.
❓ Why did Coinbase launch these wrapped assets?
Coinbase launched cbXRP and cbDOGE to enhance DeFi participation on the Base network by offering lower transaction costs and faster processing times.
❓ What is the significance of Base's Layer 2 network?
Base's Layer 2 offers improved transaction speeds and reduced costs, making it an attractive platform for DeFi integration.