Coinbase Launches Wrapped ADA On Base, Boosting Cardano DeFi Utility

Coinbase has launched a wrapped version of ADA on Base, a move designed to unlock a wave of decentralized finance (DeFi) functionalities for Cardano. The latest launch extends Coinbase’s streak of rolling out wrapped assets, bringing it one step closer to unifying ecosystem liquidity.

Coinbase Unveils cbADA with Fully Backed Reserves

Today, US-based exchange Coinbase unveiled cbADA, a representation of Cardano’s native token on the Ethereum Layer 2 chain. According to a post on X by Coinbase Assets, cbADA is fully backed 1:1 by ADA held in Coinbase custody, with transparent proof-of-reserves.

Right off the bat, the wrapped version of ADA on Base will offer users a range of DeFi functionalities. Specifically, cbADA will enable the trading and deployment of Cardano-based liquidity across decentralized exchanges on Base.

For example, using cbADA, users can engage in DeFi activities such as lending and providing liquidity on platforms like PancakeSwap, Aerodrome, and Uniswap. Traditionally, Cardano does not natively support these DEXs, but by wrapping ADA to the ERC-20 standard, users can explore DeFi utility beyond the Cardano blockchain.

Coinbase also announced a wrapped version of Litecoin’s native token, cbLTC, offering similar functionalities. This announcement comes on the heels of Coinbase stock rallying to a four-year high, as analysts predict an impending price surge.

Frenetic Activity Levels For Cardano

While investors anticipate a surge in Cardano network metrics from cbADA, the native ecosystem is already heating up. The Midnight Glacier airdrop has ignited a wave of excitement, resulting in over 200,000 mentions on X in just one week.

The airdrop could drive increased network activity, as eligible participants must interact with the Cardano blockchain to claim NIGHT tokens. Analysts also note that sales of NIGHT tokens will further contribute to the growth of Cardano’s network metrics.

At the moment, Cardano’s active user base has declined to around 20,000, down from a peak of 54,000 earlier in 2025. Meanwhile, odds for a Cardano ETF approval have reached an all-time high of 79% on Polymarket.