Coinbase has expanded its wrapped token ecosystem with the launch of cbXRP and cbDOGE on its Base Layer 2 Ethereum network, further integrating major legacy cryptocurrencies into the decentralized finance (DeFi) space.
Quick Take:
- cbXRP and cbDOGE are now live on Base, Coinbase’s Layer 2 network.
- Each token is backed 1:1 by XRP and DOGE held in Coinbase custody.
- The move enables cross-chain DeFi access for XRP and Dogecoin holders.
- Within 24 hours of launch:
- 2.3 million cbXRP (~$5M)
- 10.4 million cbDOGE (~$1.9M)
were issued.
- cbLTC and cbADA are currently in development.
Cross-Chain Utility Meets DeFi
By introducing cbXRP and cbDOGE, Coinbase enables previously siloed assets—native to the XRP Ledger and Dogecoin blockchain—to interact with the Ethereum-based DeFi ecosystem. These wrapped tokens allow users to:
- Trade XRP and DOGE on decentralized exchanges (DEXs)
- Provide liquidity in yield farms
- Participate in on-chain governance and lending protocols within Base
A Base spokesperson noted:
“This launch marks a significant step in making XRP and DOGE accessible in Ethereum’s DeFi ecosystem, using Base’s open, low-cost Layer 2 infrastructure.”
What Are Wrapped Tokens?
Wrapped tokens are representations of non-Ethereum assets on Ethereum-compatible networks. They are:
- Collateralized 1:1 by the underlying asset
- Custodied securely (Coinbase, in this case)
- Redeemable for the native asset at any time
This mechanism ensures price parity while enabling interoperability with smart contracts and DeFi apps.
Base’s Growing DeFi Ecosystem
The move follows Coinbase’s earlier launch of cbBTC in September 2024, which now boasts a $4.7 billion market cap, cementing its success. Coinbase is positioning Base as a competitive Layer 2 solution, offering:
- Faster transactions
- Lower gas fees
- Enhanced scalability for Ethereum-native and non-native assets
With cbLTC (Litecoin) and cbADA (Cardano) on the horizon, Coinbase is signaling a continued push toward multi-chain DeFi integration.
Conclusion
The launch of cbXRP and cbDOGE opens the door for millions of XRP and DOGE holders to explore DeFi without leaving Coinbase’s regulated infrastructure. It also strengthens Base’s appeal as a secure, user-friendly Layer 2 that bridges Web2 simplicity with Web3 utility.
DeFi is no longer just for ETH maxis—meme coin and altcoin holders are officially invited.