Coinbase Expands Crypto Offerings: Dogecoin and XRP Now on Ethereum Network Base

Coinbase Bridges the Gap: Unlocking XRP and Dogecoin for DeFi

Coinbase's Bold Move to Expand DeFi Accessibility

In a strategic response to growing demand for cross-chain functionality in DeFi, Coinbase has introduced two new wrapped tokens: cbDOGE and cbXRP. As America's largest cryptocurrency exchange, this initiative enables traders to use XRP and Dogecoin - currently the fifth- and eighth-largest cryptocurrencies by market cap - within decentralized finance protocols.

Unlocking Liquidity and Boosting Mainstream Adoption

By launching these wrapped tokens on its Ethereum layer-2 Base network, Coinbase strengthens its position as a bridge between major cryptocurrencies and the evolving DeFi ecosystem. Marcus Hardt, CEO of DeFi app Balancer Labs, told Decrypt: "Bringing cbDOGE and cbXRP into the ecosystem is a smart way to get more users involved and unlock new liquidity."

Regulatory Tailwinds and the Shifting DeFi Landscape

This development coincides with DeFi's push toward mainstream adoption, evidenced by even former President Trump endorsing a decentralized finance project. The growing popularity of wrapped tokens like Wrapped Bitcoin (WBTC) on Ethereum reflects traders' need to utilize digital assets across multiple DeFi applications.

Coinbase's Control and the DeFi Purist Debate

Some DeFi advocates have raised concerns about Coinbase's centralized control over these wrapped tokens. Max Luck, Head of Research at Flare, cautioned: "Coinbase controls the issuance, minting, burning, and smart contracts, without involvement from independent entities or the broader community."

The Road Ahead: Balancing Innovation and Decentralization

Coinbase's cbDOGE and cbXRP launch demonstrates the exchange's adaptability to market demands for cross-chain solutions. However, the ongoing tension between innovation and decentralization in DeFi presents challenges the industry must carefully navigate moving forward.