tl;dr
Coinbase has launched wrapped versions of XRP (cbXRP) and Dogecoin (cbDOGE) on its Ethereum-based layer-2 network, Base, with 1:1 reserves held in custody. These tokens enable cross-chain functionality and interaction with Base applications. Coinbase has issued 10.4 million cbDOGE (~$1.88 million) a...
Coinbase has launched wrapped XRP (cbXRP) and Dogecoin (cbDOGE) tokens on its Ethereum-based layer-2 network, Base, enabling seamless cross-chain functionality with 1:1 reserves safely held in custody. This move follows the successful deployment of Wrapped Bitcoin (cbBTC) and Wrapped Ether (cbETH) on Base, expanding the ecosystem’s usability for decentralized applications.
To date, Coinbase has issued approximately 10.4 million cbDOGE, valued at around $1.88 million, and 2.3 million cbXRP, worth over $5 million, allowing market participants to utilize these wrapped tokens within the Base network. These tokens join Coinbase’s broader strategy of introducing wrapped assets, with upcoming plans to launch wrapped versions of Cardano (ADA) and Litecoin (LTC).
Coinbase’s wrapped BTC offering has rapidly gained traction, ranking as the third-largest wrapped Bitcoin product with a market capitalization nearing $4.7 billion, positioning it just behind Binance’s BTCB and BitGo’s WBTC. This rapid growth underscores Coinbase's ambition to become a dominant player in the wrapped tokens space.
In parallel with expanding its wrapped tokens lineup, Coinbase has achieved significant corporate milestones, including its historic inclusion in the S&P 500, marking the first crypto company to enter the prestigious stock index. Additionally, Coinbase agreed to acquire the crypto derivatives platform Deribit for $2.9 billion, aiming to strengthen its position in the derivatives market.
Despite these successes, Coinbase is grappling with challenges following a recent data breach impacting 69,000 users and incurring losses up to $400 million. The breach also triggered criticism over the company's delayed disclosure of the incident, reflecting the ongoing cybersecurity risks in the crypto exchange landscape.
By launching wrapped XRP and Dogecoin alongside earlier tokens, Coinbase is bolstering cross-chain interaction within its Base network, fostering broader adoption and utility for digital assets. As the company navigates both growth and operational hurdles, its developments illustrate the dynamic and evolving nature of the crypto market.