The cryptocurrency landscape is evolving rapidly, and Coinbase is positioning itself at the forefront of a major shift. By launching cbXRP and cbDOGE on Base, the exchange has effectively brought two of the most recognizable digital assets—XRP and Dogecoin—into the decentralized finance (DeFi) ecosystem. This move isn’t just about technical innovation; it reflects a strategic expansion aimed at bridging the gap between legacy cryptocurrencies and modern DeFi protocols.
👉 Discover how wrapped tokens are reshaping access to decentralized finance.
What Are cbXRP and cbDOGE?
cbXRP and cbDOGE are wrapped token versions of XRP and Dogecoin, respectively, built to be fully compatible with the Ethereum Virtual Machine (EVM). These tokens operate on the Base network—a Layer 2 solution developed by Coinbase—and adhere to the ERC-20 standard, making them interoperable with thousands of DeFi applications.
Each wrapped token maintains a strict 1:1 peg with its underlying asset. For every cbXRP or cbDOGE in circulation, the equivalent amount of XRP or DOGE is securely held in reserve by Coinbase. This custodial model ensures stability and trust while enabling seamless integration into smart contract platforms.
The primary advantage? DeFi accessibility. Historically, XRP and Dogecoin have operated largely outside the Ethereum ecosystem, limiting their utility in lending platforms, decentralized exchanges (DEXs), yield farming, and other DeFi use cases. With cbXRP and cbDOGE, users can now leverage these assets across a growing suite of decentralized applications without sacrificing exposure to their original value.
Why Base? The Strategic Backbone
Base isn’t just another blockchain—it’s Coinbase’s strategic gateway into the future of decentralized finance. Designed as an Ethereum Layer 2, Base offers lower transaction fees, faster settlement times, and full compatibility with Ethereum’s developer tools and dApps.
Recent data underscores Base’s momentum:
- $14.4 billion in total value locked (TVL) as of Q1 2025
- Over $3.6 trillion in stablecoin transaction volume during the same period
- Rapid adoption by developers and users alike due to seamless onboarding via Coinbase’s infrastructure
By deploying cbXRP and cbDOGE on Base, Coinbase isn’t merely adding new tokens—it’s expanding its ecosystem’s gravitational pull. The network is becoming a hub where mainstream crypto assets meet advanced financial functionality.
👉 See how leading exchanges are integrating DeFi for broader access.
A Broader Vision: Centralized Control, Decentralized Access?
While this development enhances user experience, it also raises important questions about centralization in DeFi. Unlike native blockchain assets that operate independently, wrapped tokens like cbXRP and cbDOGE rely entirely on Coinbase’s custody and issuance infrastructure.
This creates a paradox: users gain access to decentralized applications, but the entry point remains firmly centralized. Every deposit, withdrawal, and minting process flows through Coinbase-controlled systems. In essence, the exchange becomes a gatekeeper to DeFi for millions of holders who may not otherwise navigate complex cross-chain bridges.
However, from a product strategy standpoint, this model makes sense. After the successful launch of cbBTC, which brought Bitcoin into Base’s DeFi environment, extending the concept to XRP and Dogecoin follows a clear pattern: capture liquidity, control access, drive engagement.
For many retail investors, this simplification is a net positive. Instead of managing multiple wallets, private keys, and bridge protocols, they can use familiar assets directly within DeFi—powered by a trusted platform.
Expanding DeFi Horizons for Legacy Cryptocurrencies
XRP and Dogecoin have long been criticized for lacking robust use cases beyond speculation and payments. While both have passionate communities and significant market capitalization, their technical ecosystems haven’t kept pace with innovations seen in Ethereum or Solana.
The introduction of cbXRP and cbDOGE could change that trajectory. Now, XRP holders can:
- Supply liquidity on decentralized exchanges
- Use their tokens as collateral for loans
- Participate in governance mechanisms on certain protocols
Similarly, Dogecoin owners gain opportunities to:
- Earn yield through staking-like mechanisms (via lending protocols)
- Engage in automated market makers (AMMs)
- Interact with NFT markets or gaming platforms built on Base
These functionalities were previously inaccessible without converting DOGE or XRP into other assets—a process that often meant losing direct exposure to price movements.
Frequently Asked Questions (FAQ)
Q: What is a wrapped token?
A: A wrapped token is a blockchain asset that represents another cryptocurrency on a different network. It allows assets like XRP or DOGE to function on EVM-compatible chains like Base while maintaining a 1:1 value with the original coin.
Q: Is cbXRP the same as XRP?
A: No. cbXRP is a wrapped version of XRP issued on Base. While it tracks XRP’s price exactly, it operates under the ERC-20 standard and can be used in DeFi applications. You cannot send cbXRP back to the original XRP Ledger directly.
Q: Who controls the underlying XRP and DOGE?
A: Coinbase holds the actual XRP and DOGE reserves in custody. Users trust Coinbase to maintain the 1:1 backing and allow redemption when needed.
Q: Can I use cbXRP or cbDOGE outside of Base?
A: Currently, these tokens are designed primarily for use within the Base ecosystem. However, since Base is EVM-compatible, they may be supported on other networks via bridges—but always verify compatibility first.
Q: Are there risks involved with wrapped tokens?
A: Yes. The main risks include custodial risk (reliance on Coinbase), potential smart contract vulnerabilities, and limited decentralization compared to native assets.
Q: How do I get cbXRP or cbDOGE?
A: Eligible users can convert their existing XRP or DOGE into cbXRP or cbDOGE directly through Coinbase’s platform. The process is automated and typically completed within minutes.
👉 Start exploring DeFi opportunities with supported wrapped assets today.
The Road Ahead: Ecosystem Growth vs. Decentralization Trade-offs
Coinbase’s strategy with cbXRP, cbDOGE, and earlier cbBTC signals a long-term vision: become the primary bridge between traditional crypto holdings and next-generation financial tools. By wrapping high-demand assets, the exchange lowers barriers to entry for millions of users while strengthening its own ecosystem.
Yet, this approach also highlights an ongoing tension in the crypto space—the balance between usability and decentralization. While wrapped tokens democratize access, they do so by reinforcing centralized points of control.
As adoption grows, expect increased scrutiny around transparency, reserve audits, and redemption mechanisms. The success of this model will depend not only on technical reliability but also on maintaining user trust in Coinbase’s stewardship.
Ultimately, whether you're a long-time Dogecoin supporter or an XRP advocate waiting for broader utility, one thing is clear: DeFi is no longer off-limits.
With Base continuing to expand its capabilities and partnerships, the integration of more legacy assets seems inevitable. The question isn’t if more wrapped tokens will emerge—but which ones will come next and how they’ll reshape the future of decentralized finance.