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 community, the alternate mentioned in a June 25 publish. 

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

The transparency pages already present 11,364 LTC and a couple of,963,259.36 ADA issued on Base through Coinbase.

The discharge follows the early June activations of Dogecoin (cbDOGE) and XRP (cbXRP) wrapped tokens, finishing the four-asset bundle the alternate previewed on Might 13. 

Coinbase already points an artificial model of Bitcoin (cbBTC) whereas providing a liquid staking token for Ethereum (cbETH). Dune Analytics dashboards monitoring these tokens present regular development in circulating provide and switch quantity since their introductions.

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

Moreover, knowledge from L2Beat factors out that Base is the second-largest layer-2 for Ethereum, with over $12 billion secured.

Custody construction and liquidity plans

Coinbase mentioned ADA and LTC deposits reside in segregated chilly storage wallets ruled by the identical controls utilized to cbETH and cbBTC reserves. 

The alternate mints cb-tokens solely after confirming incoming on-chain deposits and burn them when customers redeem for native belongings. Liquidity incentives on Base decentralized exchanges are anticipated to duplicate the cbETH mannequin, although Coinbase didn’t publish a timetable for bootstrap swimming pools.

The corporate added that it’ll publish quarterly attestations overlaying all artificial belongings issued underneath the Coinbase Wrapped label. 

The brand new tokens conform to the present good contract template, which has been audited for cbETH. Throughout an introductory interval meant to seed the provision, Coinbase is not going to cost conversion charges.

With cbADA and cbLTC now circulating, Coinbase provides Base customers ERC-20 gateways to 6 of the ten largest non-stablecoins by market capitalization. The alternate mentioned its custody unit will proceed to handle redemptions and monitor collateral balances in actual time.

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