Coinbase’s cbADA lets users access DeFi protocols not natively supported by Cardano.
Coinbase is bringing Cardano into the DeFi fast lane. The U.S.-based exchange has launched cbADA, a wrapped version of Cardano’s native ADA token, on the Ethereum Layer 2 network Base.
The move allows ADA holders to access a wide array of decentralized finance protocols traditionally out of reach for the Cardano ecosystem.
The cbADA token is fully backed 1:1 by ADA held in Coinbase custody, with the exchange providing transparent proof of reserves (PoR).
Wrapped ADA Unlocks DeFi on Ethereum Layer 2
With cbADA, which now comes in a compatible ERC-20 standard, users can lend, trade, and provide liquidity on platforms like Uniswap, Aerodrome, and PancakeSwap, the networks that Cardano does not natively support.
The move is part of Coinbase’s broader effort to unify fragmented blockchain ecosystems through wrapped assets. The company also launched cbLTC, a wrapped version of Litecoin, offering similar functionality.
While Cardano’s daily active users have fallen to around 20,000 from early 2025 highs, interest in the network is heating up.
A recent Midnight Glacier airdrop triggered over 200,000 social mentions in just a week, and on-chain activity is expected to rise as users interact with the network to claim NIGHT tokens.
Meanwhile, speculation over a potential Cardano ETF is gaining momentum. The odds of approval have surged to 79% on Polymarket, indicating a bullish outlook for ADA and its expanding ecosystem.
Why This Matters
Wrapping ADA for Ethereum enables Cardano to tap into more DeFi applications, which could boost usage and attract new investors.
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