Coinbase has made a strategic move to deepen integration between major cryptocurrencies and the decentralized finance (DeFi) ecosystem by launching two new wrapped tokens: cbDOGE and cbXRP. These tokens enable Dogecoin and XRP holders to participate in DeFi protocols, unlocking new utility for assets that previously had limited functionality beyond their native blockchains.
This development marks a significant step in bridging the gap between high-profile cryptocurrencies and Ethereum-based decentralized applications. By leveraging Coinbase’s Layer-2 network, Base, the exchange is enhancing cross-chain interoperability while making DeFi more accessible to a broader user base.
What Are cbDOGE and cbXRP?
cbDOGE and cbXRP are wrapped tokens—digital representations of Dogecoin and XRP—minted on the Base blockchain, an Ethereum Layer-2 solution developed by Coinbase. Wrapped tokens function by locking the original asset on its native chain and issuing a compatible version on another blockchain, typically ERC-20 on Ethereum or its Layer-2 extensions.
👉 Discover how wrapped tokens are reshaping asset utility across blockchains.
This mechanism allows assets like Dogecoin and XRP, which do not natively support smart contracts, to be used in DeFi platforms that require programmable functionality—such as lending, staking, yield farming, and decentralized exchanges (DEXs).
By introducing cbDOGE and cbXRP, Coinbase empowers users to:
- Deposit these tokens into DeFi protocols for yield generation
- Use them as collateral for loans
- Trade seamlessly across decentralized exchanges on Base
- Participate in liquidity pools and governance mechanisms
These capabilities significantly expand the utility of Dogecoin and XRP beyond simple peer-to-peer transactions.
Why Base? The Role of Layer-2 in DeFi Scalability
Base plays a pivotal role in this initiative. As an Ethereum Layer-2 network, Base inherits Ethereum’s robust security while offering faster transaction speeds and lower fees—critical factors for active DeFi engagement.
Many users have been deterred from participating in DeFi due to high gas costs on Ethereum’s mainnet. Base addresses this barrier by processing transactions off-chain and settling them on Ethereum, reducing costs by up to 90% in many cases.
Furthermore, Base is designed with developer-friendly tools and full EVM (Ethereum Virtual Machine) compatibility, encouraging rapid deployment of DeFi applications. The introduction of cbDOGE and cbXRP aligns with Coinbase’s vision to grow Base into a thriving hub for decentralized applications and user-centric financial services.
Strategic Implications for DeFi and Asset Liquidity
The launch of cbDOGE and cbXRP is more than a technical upgrade—it’s a strategic expansion of liquidity within the DeFi space. With Dogecoin and XRP ranking among the top cryptocurrencies by market capitalization, their integration brings substantial value potential to DeFi protocols.
Marcus Hardt, CEO of Balancer Labs, a leading DeFi platform for automated portfolio management, praised the move:
“cbDOGE and cbXRP represent a smart strategy to boost user engagement and unlock new liquidity. These assets have strong community backing and widespread ownership—now they can actively contribute to the DeFi economy.”
Indeed, millions of users hold DOGE and XRP primarily as investment assets. With cbDOGE and cbXRP, these dormant holdings can now generate yield, improving capital efficiency across the ecosystem.
How This Fits Into the Broader DeFi Movement
Decentralized finance aims to recreate traditional financial systems—lending, borrowing, trading, insurance—without intermediaries. Built primarily on smart contract platforms like Ethereum, DeFi has grown into a multi-billion-dollar industry.
However, one persistent challenge has been asset fragmentation. Bitcoin, Dogecoin, XRP, and other major coins operate on separate blockchains with limited interoperability. While Wrapped Bitcoin (WBTC) has successfully brought BTC into DeFi, similar solutions for other assets have been slower to gain traction.
Coinbase’s initiative reflects a growing trend: centralized platforms enabling decentralized utility. By acting as custodians for the underlying DOGE and XRP, Coinbase ensures secure minting and redemption of the wrapped versions on Base—offering trust without sacrificing accessibility.
👉 See how Layer-2 networks are accelerating the future of decentralized finance.
Core Keywords Integration
This development centers around key themes shaping the future of digital finance:
- DeFi: The primary ecosystem benefiting from expanded asset access.
- Wrapped tokens: The technological bridge enabling cross-chain functionality.
- Base network: Coinbase’s Ethereum Layer-2 solution driving scalability.
- Cross-chain interoperability: The broader goal of connecting isolated blockchain ecosystems.
- Liquidity expansion: A direct outcome of bringing DOGE and XRP into DeFi.
- Dogecoin (DOGE): A popular meme coin gaining new financial utility.
- XRP: A digital asset designed for fast payments, now entering decentralized markets.
These keywords naturally reflect user search intent around asset utility, blockchain innovation, and emerging DeFi opportunities.
Frequently Asked Questions (FAQ)
What are wrapped tokens?
Wrapped tokens are blockchain-compatible versions of cryptocurrencies that allow assets from one network (like Dogecoin or XRP) to be used on another (like Ethereum or Base). They maintain a 1:1 peg with the original asset and are backed by reserves held in custody.
How do I convert DOGE or XRP into cbDOGE or cbXRP?
Users can convert their DOGE and XRP into cbDOGE and cbXRP directly through Coinbase’s supported wallets or integrated DeFi platforms on the Base network. The process involves depositing the original asset, which is then locked, and the wrapped version is issued.
Are cbDOGE and cbXRP safe to use?
Yes. These tokens are issued by Coinbase, a regulated U.S.-based exchange, using secure custodial mechanisms. The underlying assets are held in reserve, ensuring each wrapped token is fully backed.
Can I earn yield with cbDOGE or cbXRP?
Absolutely. Once converted, cbDOGE and cbXRP can be deposited into various DeFi protocols on Base to earn interest through liquidity provision, staking, or lending.
Is this available globally?
Availability may vary by jurisdiction due to regulatory considerations. Users should check local compliance before participating.
What happens if I want to redeem my original DOGE or XRP?
The wrapping process is reversible. Users can burn their cbDOGE or cbXRP tokens to unlock the equivalent amount of native DOGE or XRP from custody, typically through the same interface where they initiated the wrap.
The Road Ahead for Cross-Chain Finance
Coinbase’s move signals growing recognition that the future of crypto finance lies in interoperability. As more users demand seamless experiences across chains, wrapped assets will play an increasingly vital role in connecting ecosystems.
While challenges remain—such as custodial risks and reliance on centralized issuers—initiatives like cbDOGE and cbXRP serve as practical stepping stones toward a more inclusive DeFi landscape.
👉 Explore how next-gen blockchain bridges are transforming digital asset mobility.
As innovation continues, we may see further expansions—potentially including other non-EVM assets or even decentralized wrapping mechanisms that reduce reliance on single entities.
For now, Coinbase’s latest offering strengthens its position not just as an exchange, but as a gateway to the decentralized financial frontier. With DOGE and XRP now active participants in DeFi, the line between centralized holdings and decentralized utility grows ever thinner.