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

Coinbase has introduced cbLTC, a wrapped version of Litecoin (LTC), on its Ethereum layer-2 (L2) network called Base, marking a significant development for Litecoin holders and the broader decentralized finance (DeFi) ecosystem. This new ERC-20 token is backed 1:1 by Litecoin held in Coinbase’s custody and is supported by regular proof-of-reserves audits to ensure full transparency and security.

As of June 26, 2025, more than 11,300 cbLTC tokens have been minted and are actively circulating on the Base network alongside approximately 2.9 million wrapped Cardano (cbADA) tokens. Base’s total value locked (TVL) now exceeds $3 billion, highlighting its growing prominence as a multi-asset DeFi platform.

What This Means for Litecoin Holders

Native Litecoin operates on its own blockchain and cannot directly participate in Ethereum-based DeFi protocols. By wrapping LTC as an ERC-20 token on Base, Coinbase enables Litecoin holders to access a variety of DeFi services such as yield farming, liquidity pools, lending, and decentralized exchanges without needing to sell or leave their native LTC assets. This interoperability solution addresses a longstanding limitation for Litecoin, which has traditionally been used mainly for payments and peer-to-peer transfers.

Wrapped tokens like cbLTC are minted or burned on demand with a strict 1:1 backing mechanism, ensuring that every cbLTC token on Base corresponds to an actual LTC held by Coinbase. This custodial model mitigates risks associated with bridges or third-party intermediaries.

Strategic Implications and Future Prospects

This launch expands Coinbase’s Base network offerings, which already include wrapped versions of Bitcoin (cbBTC), Cardano (cbADA), and other major cryptocurrencies, positioning Base as a vibrant cross-chain DeFi hub. Projects building on Base may provide additional incentives such as liquidity mining rewards to encourage the adoption of cbLTC, potentially boosting liquidity and trading activity.

For Litecoin, this development enhances its utility and adoption by integrating it into the fast-growing Ethereum-compatible DeFi space. It represents a strategic step toward greater mainstream usage, allowing LTC holders to benefit from DeFi innovations while retaining ownership of their original coins.

Additional Context

While Litecoin’s price remains relatively stable around $85, with minor fluctuations and ongoing market speculation about potential breakouts, the launch of cbLTC on Base represents a tangible expansion of Litecoin’s ecosystem beyond traditional price movements or speculative forecasts. This also coincides with Coinbase issuing warnings about fraudulent cbLTC and cbADA tokens impersonating official assets, underscoring the importance of verifying token contract addresses to avoid scams.

Sources

• Coindesk: Coinbase Brings Wrapped Cardano, Litecoin to Base with cbADA, cbLTC
• Ainvest: Coinbase Launches cbLTC on Base, Expanding Litecoin DeFi Utility
• U.Today: Cardano and Litecoin Holders Warned by Coinbase – Here’s Why
• CoinJournal: Litecoin Price Prediction – Is LTC Ready for a Breakout?