Coinbase Expands Its Art, Fashion, and Entertainment Hub by Introducing Wrapped XRP and Dogecoin Tokens

Coinbase, visible by the handle @CoinbaseAssets, has introduced two new "wrapped" tokens—cbDOGE and cbXRP—on its Base network. The company explained that it holds 1:1 reserves of the underlying assets that back Coinbase Wrapped tokens.

The move comes as Coinbase is making a bigger push into the mainstream. Previously a convoluted and unregulated world, now even President Trump has backed a decentralized finance project. Such apps often run on Ethereum, presenting problems for traders who want to use their Bitcoin or other digital tokens in DeFi.

Coinbase is now making its own Base network, a layer-2 chain on Ethereum, a central part of its strategy.

"We’re also focused on expanding the utility of cryptocurrencies beyond trading and investing," Coinbase's spokesperson told Decrypt via email. "The launch of cbDOdogecoin and cbXRP on Base allows customers to use the assets they already hold in new ways and makes trading more accessible to everyone."

The company adds that it will continue to create new products and services to meet the evolving needs of its customers.

The move also comes as demand for cross-chain functionality surges in the complex DeFi world, industry observers noted.

"The potential is huge. Coinbase just showed it can efficiently put a meme coin (DOGE) and cross-border payments coin (XRP) into the DeFi ecosystem without a third-party bridge," Sam Mudie, CEO and co-founder of tokenized real-world assets firm Savea, told Decrypt, adding that he expects more large-cap coins to follow suit.

"This opens up possibilities for seamless integration of major cryptocurrencies into DeFi protocols and unlock new liquidity."

However, some DeFi proponents have raised concerns over Coinbase's role in controlling the wrapped tokens.

"It seems like Coinbase is completely controlling the issuance, minting, burning and smart contracts, without involvement from independent entities or the broader community," Flare Head of Research Max Luck told Decrypt.

"This lack of transparency and community involvement may lead to a potential for abuse or manipulation, which could have far-reaching consequences for the entire DeFi ecosystem."