Coinbase Unveils Wrapped Litecoin (cbLTC) on Base Network, Expanding DeFi Access

On June 26, 2025, Coinbase unveiled wrapped Litecoin (cbLTC) on its Ethereum Layer 2 network, Base, marking a significant advancement in Litecoin’s (LTC) ecosystem. This strategic move allows LTC holders to directly participate in Ethereum-based decentralized finance (DeFi) applications, expanding the cryptocurrency’s utility.

Wrapped Litecoin tokens on Base, fully 1:1 backed by Litecoin reserves held securely by Coinbase, enable seamless conversion from native LTC to cbLTC when transferred onto the Base network. This integration permits LTC holders to engage in popular DeFi activities, such as lending, trading, and staking on platforms like Aave, Compound, and Uniswap. The process is reversible, allowing cbLTC to be converted back into native LTC, thus preserving parity and liquidity.

Since the integration began, approximately $2.5 million worth of Litecoin has been wrapped, indicating early adoption. This initiative complements Coinbase’s existing array of wrapped tokens, such as Bitcoin (cbBTC) and XRP (cbXRP), further enhancing cross-chain interoperability and diversification for its users.

Key Implications

• Enhanced DeFi Participation: LTC holders gain the capability to utilize their assets in yield farming, decentralized borrowing, and automated market-making on Ethereum protocols.
• Increased Market Liquidity: The wrapped token model may attract retail and institutional investors by offering efficient on-chain usability and diversified exposure.
• Trust and Transparency: Coinbase’s commitment to verifiable reserve backing for cbLTC ensures user confidence in the wrapped token’s value proposition.

This development aligns with a broader trend of cross-chain asset integration, expanding the practical applications of LTC beyond traditional use cases.

Context in Broader Litecoin News

Aside from Coinbase’s wrapped Litecoin launch, there have been other noteworthy activities within the Litecoin ecosystem:

• Mobile Cloud Mining: MiningToken introduced a mobile cloud mining service for Litecoin, eliminating the need for hardware and energy expenses, supported by AI-optimized efficiency and a $100 promotional bonus.
• Increased Whale Activity: On-chain data reveals heightened selling pressure with large transactions, including a whale moving 340,000 LTC, indicating potential short-term bearish market momentum.
• Free Cloud Mining Platform: ALL4 Mining launched a platform offering free cloud mining for Bitcoin and Litecoin, reducing barriers to entry for mining enthusiasts.

Despite these developments, Coinbase’s integration of wrapped LTC on Base stands out as the most impactful, signaling stronger DeFi adoption and enhanced liquidity avenues for Litecoin holders.

Sources

• MiningToken Launch of Mobile LTC Cloud Mining
• Litecoin Whale Selling Pressure
• ALL4 Mining Free Cloud Mining Platform
• Coinbase Adds Wrapped ADA and LTC on Base Network
• Analysis of Litecoin Selling Pressure and Price Movement