Coinbase Launches cbADA on Base—Cardano DeFi Gears Up

Coinbase has launched cbADA, a wrapped version of Cardano’s native ADA token, on the Ethereum Layer 2 network Base.

Written by: Arslan Butt • Thursday, June 26, 2025 • 2 min read

• Last updated: Thursday, June 26, 2025

Quick overview

Coinbase has launched cbADA, a wrapped version of Cardano's ADA token, on the Ethereum Layer 2 network Base.
cbADA is fully backed 1:1 by ADA stored in Coinbase custody, ensuring transparency through proof-of-reserves.
The launch allows ADA holders to access Ethereum-based DeFi services, enhancing capital efficiency and liquidity.
The release coincides with increased community engagement and speculation around Cardano's potential ETF, signaling renewed interest in the ecosystem.

Coinbase has launched cbADA, a wrapped version of Cardano’s native ADA token, on the Ethereum Layer 2 network Base. This is a big step in bridging the Cardano ecosystem with Ethereum-based DeFi infrastructure so ADA holders can use their assets in more ways.

According to Coinbase Assets, cbADA is fully backed 1:1 by ADA stored in Coinbase custody. Transparency is ensured through proof-of-reserves so you can trust the wrapped token. We want to allow Cardano users to access the wide range of DeFi services on Ethereum that aren’t natively supported on the Cardano blockchain.

This follows Coinbase’s broader initiative to add more wrapped tokens to our lineup. Alongside cbADA we also launched cbLTC for Litecoin, with the same Ethereum-compatible design.

cbADA Unlocks Multi-Platform DeFi

By wrapping ADA into an ERC-20 token we enable users to use their assets across major Ethereum-based dapps. With cbADA you can:

Trade on popular DEXs like Uniswap, PancakeSwap and Aerodrome
Provide liquidity and earn yields in liquidity pools
Access lending and borrowing on Base
Participate in cross-chain protocols without leaving the Ethereum ecosystem

This gives ADA holders tools to increase capital efficiency, access yield-generating platforms and diversify exposure—all without leaving the Coinbase ecosystem or compromising custody security.

Analysts expect this to increase Cardano’s liquidity footprint and drive new demand as wrapped ADA gains traction with DeFi-native users.

Cardano Sees On-Chain Momentum

The cbADA launch coincides with a surge in community engagement driven by the Midnight Glacier airdrop. This has led to:

Over 200,000 mentions of X in a week
A spike in user wallet activity to claim NIGHT tokens
Increased speculation around Cardano ETF odds—now at 79% on Polymarket

Despite the recent dip in daily active users from 54,000 to 20,000 the wrapped token could reinvigorate on-chain metrics and get ADA back into the DeFi conversation.

Coinbase’s cbADA release marks a new chapter for Cardano, connecting its native assets to the Ethereum DeFi landscape. As institutional interest grows and retail users want more utility, cbADA could be the bridge between two big blockchain ecosystems.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.