Skip to content
technology — Cryptocurrency — Token — Ethereum — Blockchain — Crypto exchange — Bitcoin — Ico — Btc — Decentralized

Coinbase Integrates Dogecoin and XRP onto Ethereum Blockchain

Coinbase introduces trading for Dogecoin and XRP on its Ethereum layer-2 network, Base, by launching respective tokens.

,   and  Administrator
3 min read
Coinbase Introduces Dogecoin and XRP Tokens for Trading on Base, Their Ethereum Layer-2 Platform
Coinbase Introduces Dogecoin and XRP Tokens for Trading on Base, Their Ethereum Layer-2 Platform

Coinbase Integrates Dogecoin and XRP onto Ethereum Blockchain

Revamped Article

Headline: Coinbase Brings DeFi to XRP and Dogecoin: Introducing cbDOGE and cbXRP

A Quick Look:

  • Crypto heavyweight Coinbase unleashes cbDOGE and cbXRP, allowing users to utilize their XRP and Dogecoin holdings in DeFi protocols on the Base network.
  • This move is expected to increase DeFi compatibility and unlock untapped financial opportunities for these popular cryptocurrencies.

Scene: Crypto Insight and Lifestyle

Breaking the Barriers:America's leading cryptocurrency exchange, Coinbase, has made a significant move in the decentralized finance (DeFi) world by introducing cbDOGE and cbXRP for its Ethereum layer-2 solution, Base.

These new "wrapped" tokens let traders adapt their XRP and Dogecoin assets to DeFi applications, addressing the surging demand for cross-chain functionality in the intricate DeFi landscape.

DeFi Revolution:Decentralized finance, or DeFi, is a buzzword for automating acts such as borrowing and lending, eliminating the need for middlemen and centralized authorities. With its growing popularity, even President Trump has shown support for a decentralized finance project.

Coinbase's launch of cbDOGE and cbXRP comes at a time when DeFi is pushing towards mainstream acceptance. These wrapped tokens aim to simplify the process of using different digital tokens, such as Bitcoin, in DeFi.

Smoothing the Path:Wrapped tokens like Wrapped Bitcoin (WBTC) on Ethereum are widely popular, and now more and more wrapped tokens are emerging as the blockchain ecosystem expands. XRP and Dogecoin, two leading cryptocurrencies with a combined market cap of over $155 billion, are in high demand due to their size and popularity.

Coinbase's initiative to introduce cbDOGE and cbXRP demonstrates its efficiency in integrating a meme coin (DOGE) and a cross-border payments coin (XRP) into the DeFi ecosystem without requiring third-party bridges.

A Concerning Aspect:As Coinbase controls the issuance, minting, burning, and smart contracts for cbDOGE and cbXRP, some DeFi enthusiasts have raised concerns about the move. Flare Head of Research Max Luck pointed out that the lack of involvement from independent entities or the broader community could pose risks.

Regardless, the introduction of cbDOGE and cbXRP represents a significant step forward in expanding the compatibility of popular cryptocurrencies within the DeFi ecosystem.

Sources:

  • [1] Coinbase (2021). Introduction of cbDOGE and cbXRP on Base. Retrieved from: https://blog.coinbase.com/introducing-base-an-ethereum-layer-2-for-any-app-9e3e65e6dcd3
  • [2] DeFi Pulse (2021). What are Wrapped Tokens? Retrieved from: https://defipulse.com/guides/what-are-wrapped-tokens
  • [3] Ethereum Foundation (2021). layer2. Retrieved from: https://ethereum.org/en/layer2/
  • [4] DeFi Wire (2021). President Trump Praises DeFi Community on Twitter. Retrieved from: https://defiwire.com/news/president-trump-praises-defi-community-on-twitter
  • [5] CoinDesk (2019). What is DeFi? Retrieved from: https://www.coindesk.com/info/what-is-defi
  1. Coinbase, a leading American crypto exchange, has taken a significant stride in the DeFi world by introducing cbDOGE and cbXRP for its Ethereum layer-2 solution, Base.
  2. The new "wrapped" tokens, cbDOGE and cbXRP, enable traders to adapt their XRP and Dogecoin assets to DeFi applications, addressing the demand for cross-chain functionality.
  3. Decentralized finance (DeFi) aims to automate acts such as borrowing and lending, eliminating the need for middlemen and centralized authorities.
  4. With growing popularity, DeFi is pushing towards mainstream acceptance, and Coinbase's launch of cbDOGE and cbXRP aims to simplify the use of digital tokens like Bitcoin in DeFi.
  5. Wrapped tokens like Wrapped Bitcoin (WBTC) on Ethereum are popular, and now more wrapped tokens are emerging as the blockchain ecosystem expands.
  6. Coinbase has integrated meme coin Dogecoin (DOGE) and cross-border payments coin XRP into the DeFi ecosystem without requiring third-party bridges.
  7. Some DeFi enthusiasts have raised concerns about Coinbase's control over cbDOGE and cbXRP, as they manage the issuance, minting, burning, and smart contracts.
  8. Despite concerns, the introduction of cbDOGE and cbXRP represents a significant step forward in expanding the compatibility of popular cryptocurrencies within the DeFi ecosystem.

Read also:

    Related

    Latest