Why Coinbase Brought Dogecoin and XRP to Ethereum Network Base
Coinbase launched two new wrapped tokens, cbDOGE and cbXRP, enabling the use of XRP and Dogecoin on decentralized finance (DeFi) protocols. These tokens are available on Coinbase's Ethereum layer-2 Base network, with 1:1 reserves backing them. The introduction aims to meet the growing demand for cross-chain functionality in DeFi. Industry experts view this move as a way to attract more users and enhance liquidity. DeFi applications automate financial transactions without intermediaries, and the popularity of wrapped tokens is increasing as they allow various cryptocurrencies to be used in DeFi. XRP and Dogecoin rank fifth and eighth in market capitalization, respectively. Concerns have been raised regarding Coinbase's control over the issuance and management of these wrapped tokens, as it limits community involvement.
