Conference in Manila last year, and then with Aisha. She’s a young Filipina entrepreneur who operates a small online business producing lovely, handcrafted jewelry. She joined Roller after Degen’s launch, but was thrilled by DeFi and what it could do to help people bypass traditional banks and access global markets. The gas fees on Ethereum were absolutely crippling her. Each purchase was like dropping cash into a flame. She imagined a future where she could easily make payments to her customers. She shorted with her favorite crypto, Dogecoin, and never lost her profits in the first place.

Coinbase is about to throw a curveball: wrapped versions of XRP, ADA, DOGE, and LTC onto its Base network. cbXRP, cbADA, cbDOGE, cbLTC – these aren’t just new tokens, they’re the possible keys to unlocking Asia’s slumbering DeFi giant.

Wrapped Tokens: Asia's DeFi Game Changer?

Let's be realistic. This isn't a guaranteed win. The regulatory landscape surrounding these coins in Asia is equally as complicated and differs from country to country. One of the jurisdictions with a relatively friendly approach to crypto, Singapore has seen countries like China fully ban cryptocurrency. Coinbase faces a massive uphill challenge in getting this one right.

That’s why I was excited to have the chance to chat with David, the founder of a Singapore-based DeFi startup focused on cross-border payments. He’s cautiously optimistic.

  • Accessibility: Many Asian countries have a high affinity for XRP, ADA, and DOGE. In the Philippines, for example, Dogecoin has a surprisingly strong following. Making these assets accessible on a low-fee network like Base could dramatically increase DeFi adoption among everyday users.
  • Liquidity: These wrapped tokens could inject new liquidity into Base, attracting developers and fostering innovation. Imagine a Filipino developer building a remittance app on Base, leveraging cbXRP to offer faster, cheaper transfers to families back home.
  • VC Magnet: This move signals Coinbase's commitment to Base and the broader Ethereum ecosystem. This could attract more VC funding into Asian DeFi projects building on Base. Local founders can now pitch their ideas with the backing of a major player like Coinbase.

"The potential is huge," he told me. That all really comes down to how well Coinbase manages to pull this off. If they manage to create infrastructure that is large, deep and secure for these wrapped tokens, it might not matter. This would remove an enormous barrier to entry for users and developers alike in the rapidly growing Southeast Asian region.

Local Founders: Will They Benefit?

He raised a critical point: security. Wrapped tokens come with inherent risks. Smart contract vulnerabilities, exploits, hacks, and the threat of de-pegging are serious risks too. Coinbase must go all-in on security and transparency if it hopes to build trust with users.

Coinbase isn't just being benevolent. They're playing a strategic game. Base currently has a TVS of more than $15 billion, allowing it to become a dominant player in the Layer-2 space. This is not just a land-grab for market share, this is a calculated bet that the DeFi potential of Asia makes the risk worth it.

Think about cbBTC. With BitGo’s WBTC custody model suddenly in flux, Coinbase was ready to make its move. Well, it’s now on Solana and there’s $4 billion of it floating around out there. It still remains slightly behind WBTC and BTCB. Coinbase understands that if they are going to compete with them, they have to do something special.

The Price of Aspiration

This is where the “opportunity for surprise” enters the equation. This isn’t merely about giving away new tokens, but rather the potential to change the game entirely on the relationship between CEXes and DeFi. Coinbase is essentially saying, "We can bridge the gap. We can bring the masses into DeFi."

What’s the answer, you might ask — and as with most things in crypto, the answer is complicated. The risks are real: security vulnerabilities, regulatory uncertainty, and the ever-present threat of scams and fake tokens. Coinbase has time and again been forced to warn users, asking them to double check contract addresses.

The potential rewards are even greater. Higher adoption, more liquidity and a more advanced DeFi ecosystem in Asia.

Is It Worth The Gamble?

The real question is: will Coinbase's gamble pay off? Or will it truly empower local entrepreneurs like Aisha and David? Will it unlock Asia's DeFi potential? Only time will tell. One thing is certain: the stakes are high, and the world is watching.

I bet you that other large exchanges will follow suit in rapid fashion. They are jointly issuing their own wrapped tokens on Base and other Layer-2 networks. As we’ve said many times, the future of DeFi is interoperable, and Coinbase is keen to be at the forefront.

The real question is: will Coinbase's gamble pay off? Will it empower local entrepreneurs like Aisha and David? Will it unlock Asia's DeFi potential? Only time will tell. But one thing is certain: the stakes are high, and the world is watching.

What's next? I predict we'll see other major exchanges follow suit, launching their own wrapped tokens on Base and other Layer-2 networks. The future of DeFi is interoperable, and Coinbase is trying to lead the charge.