Good News for XRP and DOGE? Coinbase Unveils Wrapped Versions on Base Network

The largest American crypto exchange, Coinbase, has launched wrapped versions of XRP and Dogecoin on its Ethereum-based layer-2 network, Base.

According to a series of tweets from the Coinbase Assets X account, the crypto exchange holds 1:1 reserves for the underlying assets of cbXRP and cbDOGE in its custody.

cbXRP, cbDOGE Go Live on Base

The launch of wrapped tokens for XRP and DOGE will enable cross-chain functionality for the assets. Market participants can now use cbXRP and cbDOGE to interact with applications on the Base network.

So far, Coinbase has issued 10.4 million cbDOGE worth approximately $1.88 million per Dogecoin’s price at the time of writing. The exchange has also issued at least 2.3 million cbXRP worth more than $5 million. To prevent scammers from misleading users, Coinbase has provided the Base contract addresses for cbXRP and cbDOGE.

cbXRP and cbDOGE have joined the growing list of wrapped assets across the Base network. Coinbase has already issued Wrapped Bitcoin (cbBTC) and Wrapped Ether (cbETH). The company plans to launch similar versions for Cardano (ADA) and Litecoin (LTC) in the coming weeks.

Coinbase’s Wins and Challenges

Since last year, the exchange has been expanding its market for wrapped tokens, especially after the successful launch of cbBTC. The product went live on Base and Ethereum in mid-September 2024, becoming the third-largest wrapped bitcoin version within a week. It has maintained that position with a market capitalization of at least $4.7 billion, according to data from CoinGecko, trailing behind Binance’s wrapped BTC (BTCB) and BitGo’s product, WBTC.

This latest milestone comes shortly after Coinbase joined the S&P 500 stock market index, marking the first time a crypto company has achieved this distinction. The firm has also recently entered into an agreement to acquire Deribit, the largest crypto derivatives platform, for $2.9 billion.

While the crypto exchange records new wins, it is also tackling certain challenges. Coinbase faced a massive data breach that affected at least 69,000 users. The incident not only compromised user data and Coinbase’s support infrastructure but also led to a loss of up to $400 million. As the firm tries to handle the situation, it has come under intense scrutiny for failing to disclose the cyberattack when it was first noticed.