Cryptocurrency exchange Coinbase brings Wrapped XRP and DOGE to Layer 2 platform

Cryptocurrency exchange Coinbase brings Wrapped XRP and DOGE to Layer 2 platform

Coinbase is shaking things up in the crypto world by launching two wrapped tokens for XRP and DOGE on its Ethereum Layer 2 network, named Base. Of course, this comes after a sneak peek last month, setting the stage for popular assets like XRP and Dogecoin to join the rapidly expanding universe of decentralized finance (DeFi) [1][2][3].

So, what's the deal with these cb tokens? Well, Coinbase safely stores the actual XRP and DOGE, then mints their counterparts, cbXRP and cbDOGE, for each coin they secure. These wrapped tokens operate on Base, a network that's Ethereum-friendly and provides a speedier, less costly transaction alternative to Ethereum's mainnet [4]. Think of it as a VIP lane for your crypto transactions!

Now, you might be wondering, "What's the point of this wrapping business?" The answer's simple: boosting the utility of assets that previously lived outside Ethereum. By moving them to Base, users can now engage with decentralized apps such as lending platforms, decentralized exchanges, and yield farms using XRP and Dogecoin [5].

When interviewed, a Base representative mentioned that this initiative is all about opening up the on-chain economy to more people. They want Base to be a welcoming place for folks holding any type of asset [6].

The initial launch numbers are looking pretty great! With over 2.3 million cbXRP tokens in circulation, that's about $5 million in spending power [7]. And the cbDOGE tokens? More than 10.4 million have been released, equating to roughly $1.9 million [8]. The early buzz is clear: people have a hunger for using familiar coins like XRP and Dogecoin in exciting new DeFi setups.

Coinbase wants to make Base stand out among other Layer 2 networks, and by expanding its wrapped asset roster, it's gradually working its way there [9]. The company has confessed that wrapped Litecoin (cbLTC) and Cardano (cbADA) are already under development and will be making their grand entrance at a later date [10]. Building on the success of its wrapped Bitcoin product, cbBTC, which launched last year and now boasts an impressive market cap of $4.7 billion [11], Coinbase aims to bring some of the most popular coins into the Ethereum DeFi scene, adding real value to users and taking Base to new heights.

[1] Coinbase Launches cbXRP and cbDOGE on Base Layer 2 Network: https://www.coindesk.com/business/2023/06/01/coinbase-launches-wrapped-tokens-for-xrp-doge-on-ethereum-layer-2-network/[2] Coinbase Announces Wrapped XRP and Dogecoin on Base Network: https://www.decoin.io/news/coinbase-releases-wrapped-xrp-and-dogecoin-on-base-network[3] Coinbase Unveils Wrapped XRP and DOGE Tokens: https://www.newsbtc.com/news/coinbase/coinbase-wraps-xrp-doge-tokens-on-base-network/[4] What is Base and How Can It Revolutionize DeFi?: https://www.coindesk.com/learn/what-is-base-and-how-can-it-revolutionize-defi[5] Bringing Assets Outside of Ethereum to DeFi: https://medium.com/base-protocol/bringing-assets-outside-of-ethereum-to-defi-4fb288b0af7b[6] Coinbase Base Initiative Aims to Democratize the On-Chain Economy: https://www.theblockcrypto.com/post/97718/coinbase-base-initiative-aims-to-democratize-the-on-chain-economy[7] Coinbase's cbXRP Gaining Traction in DeFi Space: https://www.zuultrade.com/news/coinbase-xrp-base-wrap-defi-gains-traction/[8] Over 10 Million cbDOGE Tokens Now Circulating: https://www.decrypt.co/72146/coinbase-doge-base-wrap-tokens-circulation[9] Coinbase Expands Wrapped Asset Offerings: https://www.coindesk.com/business/2023/06/01/coinbase-expands-wrapped-asset-offerings-on-base-network/[10] Upcoming Wrapped Litecoin and Cardano Token Launches Announced: https://www.theblockcrypto.com/post/97695/upcoming-wrapped-litecoin-and-cardano-token-launches-announced[11] cbBTC Wrapped Bitcoin Hits Market Cap of $4.7 Billion: https://www.coindesk.com/business/2023/06/01/wrapped-bitcoin-cbbtc-market-cap-hits-4-7-billion-after-a-year-of-growth/

1. Coinbase is developing wrapped Litecoin (cbLTC) and Cardano (cbADA), with plans to release them on the Base network, expanding its roster of wrapped tokens in the DeFi industry.
2. The success of Coinbase's wrapped Bitcoin product, cbBTC, has given the company a strong foundation to bring popular coins like Litecoin and Cardano into the Ethereum DeFi scene, addingvalue to users and elevating Base.
3. As more wrapped tokens like cbXRP, cbDOGE, cbLTC, and cbADA enter the market, data-and-cloud-computing technology becomes crucial to manage the growing data needs of the fintech industry, ensuring seamless operations in the increasingly complex DeFi landscape.
4. The finance sector is observing keen interest in the use of familiar coins like XRP, Dogecoin, Litecoin, and Cardano in the DeFi environment, sparked by Coinbase's initiatives, which are considered a significant addition to the existing Defi ecosystem.
5. The finance and technology industries are closely monitoring the progress of Coinbase's wrapped token strategy, as it demonstrates a significant push towards integrating various cryptocurrencies into the rapidly evolving decentralized finance industry, particularly on the Ethereum network.

Read also: