On June 3, 2025, Coinbase launched decentralized finance (DeFi) functionalities for XRP and Dogecoin through its Base Layer 2 network, aiming to expand user accessibility and market reach.
The initiative underscores Coinbase’s efforts to enhance cryptocurrency interoperability, offering improved liquidity and transaction efficiency, while encouraging broader adoption of DeFi solutions.
Coinbase Enhances Interoperability with XRP, DOGE on Base
Coinbase has rolled out DeFi opportunities for four cryptocurrencies, including XRP and Dogecoin, on its Base Layer 2 network. This move is part of a broader strategy to enhance interoperability and attract more users. “Our focus remains on onboarding more users globally and enhancing liquidity,” said Jesse Pollak, the Creator and Project Lead for Base at Coinbase.
Led by Jesse Pollak, the Base project is ready for mainstream adoption. Pollak, who has led Base from inception, now aims to scale the network’s capabilities and user base.
Launch Sparks Increased Liquidity and User Engagement
Market reactions have noted increased liquidity and user engagement, with wrapped tokens enabling more efficient DeFi transactions. The launch is expected to catalyze further innovation in decentralized finance.
The announcement may boost financial flows into Base, with a potential increase in transaction volumes and ecosystem liquidity. Past trends suggest similar events have led to enhanced protocol adoption and expanded trading pairs.
Coinbase’s DeFi Move Mirrors Past Cross-Chain Successes
Similar initiatives, like the introduction of wrapped Bitcoin (WBTC) on Ethereum, resulted in significant cross-chain DeFi activity. These past efforts suggest a likely positive impact on both Base and its supported assets.
Kanalcoin experts suggest that Coinbase’s move could set a precedent for broader DeFi adoption, leveraging Base’s status as the largest Layer 2 by total value locked. Analysts expect continued growth driven by enhanced accessibility and liquidity.
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