XRP Gains New Support as Coinbase Launches Wrapped Version

XRP continues to make headlines as Coinbase, the leading U.S.-based cryptocurrency exchange, has rolled out a wrapped version of the digital asset on its Ethereum Layer-2 network, Base. The move adds a significant layer of utility and cross-chain functionality for XRP holders.

Coinbase made the announcement via a series of posts, where it confirmed that both cbXRP and cbDOGE are now live on Base. The exchange emphasized that these assets are backed 1:1 by their underlying cryptocurrencies, with reserves held directly in Coinbase’s secure custody platform.

cbXRP and cbDOGE Enable Enhanced Utility on Base

By introducing cbXRP to the Base network, Coinbase is enabling XRP to be used directly within decentralized applications (dApps) built on this Ethereum-based platform. This cross-chain availability improves the versatility of XRP, opening doors to a range of use cases from DeFi lending to trading and beyond.

At the time of the update, Coinbase had distributed more than 2.3 million cbXRP, representing over $5 million in value based on the current market rate. They’ve also launched cbDOGE, issuing approximately 10.4 million tokens valued around $1.88 million. In an effort to maintain transparency and avoid scams, Coinbase has shared the Base contract addresses for both cbXRP and cbDOGE.

These additions expand Base’s growing library of wrapped tokens, joining cbBTC and cbETH. Looking ahead, Coinbase also intends to introduce wrapped versions of Cardano (ADA) and Litecoin (LTC), reflecting their long-term commitment to building a robust tokenized ecosystem.

Coinbase’s Strategy and Recent Developments

Coinbase has been steadily increasing its push into wrapped tokens since the successful release of cbBTC in mid-September 2024. That launch proved to be a game-changer, positioning cbBTC as the third-largest wrapped Bitcoin on the market shortly after its debut. As of now, it maintains a substantial market capitalization, trailing only BTCB and WBTC.

This current advancement with wrapped XRP coincides with a series of major company achievements. Most notably, Coinbase was recently included in the prestigious S&P 500 index, becoming the first crypto-native company to secure that recognition. Additionally, the exchange has struck a $2.9 billion agreement to acquire Deribit, a leading crypto derivatives platform, signaling its ambition to further dominate varied sectors of the crypto space.

However, not everything has been smooth sailing for Coinbase. The company is currently grappling with the fallout from a significant cybersecurity incident. A recent data breach affected over 69,000 users and resulted in the reported loss of up to $400 million. The event raised several concerns, especially after it came to light that Coinbase did not promptly reveal the severity of the breach. This delay has exposed the company to harsh criticism from the crypto community and cybersecurity professionals alike.

Despite facing these headwinds, Coinbase remains focused on building infrastructure and liquidity tools that can foster wider crypto adoption. Introducing cbXRP on Base is a clear example of how the platform is aiming to expand the functionality of major cryptocurrencies within its growing ecosystem.

Related: Expert Advice: Sell XRP If You’re Confused

XRP holders now have another method to deploy their assets across decentralized applications while benefiting from Coinbase’s institutional-grade custody and verification systems. This move not only adds value to the XRP ecosystem but also strengthens Base as a competitive Layer-2 solution aimed at scaling Ethereum’s functionalities.