Wrapped ADA and LTC are now live on Base

🧠 Wrapped ADA and LTC go live on Base

Coinbase just rolled out wrapped versions of Cardano (ADA) and Litecoin (LTC) on its Layer 2 network, Base and it’s a bigger move than it looks on the surface.

The two new assets: cbADA and cbLTC, are ERC-20 tokens backed 1:1 by actual ADA and LTC held in Coinbase custody. The goal? Bring more assets and users into the Base ecosystem, and expand DeFi access without needing a token bridge or external Layer 1 integration.

They join Coinbase’s growing wrapped asset lineup: cbBTC, cbXRP, and cbDOGE, all part of a broader strategy to let users bring the assets they already hold into Base’s DeFi stack.

Why this matters:

• Coinbase is turning Base into DeFi’s most accessible Layer 2

• Wrapping ADA and LTC opens the door for holders of two “OG” chains to interact with on-chain apps for the first time without moving to Ethereum or swapping into stablecoins

• It avoids the risk-prone bridges that often attract hacks

Adoption is already rolling:

• Coinbase shared proof of reserves for cbADA, 2.93 million ADA already wrapped

• Smart contract addresses for both tokens were published to avoid impersonation scams

• Base is handling 7.91M daily transactions, with 13M+ unique wallets in the last 7 days

• Total value secured: $12.39B second only to Ethereum itself

Base’s open approach is winning fans. Unlike other L2s (like Kraken’s Ink), Base has no native token and focuses on developer access and mainstream usability. Its recent Demo Day drew 900+ project pitches, including 11 from African teams, a clear sign builders are taking notice.

Bigger picture:

Coinbase is doing what no other exchange has pulled off. It’s quietly connecting retail, institutional, and on-chain infrastructure under one roof. Analysts at Bernstein now expect COIN stock to hit $510, citing Coinbase’s dominance and execution.

Add in the fact that Coinbase just secured a MiCA license in Luxembourg, unlocking operations in all 27 EU countries, and the picture becomes clearer:

This isn’t just about cbADA or cbLTC, it’s about building the rails for a fully connected, exchange-powered crypto economy.

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📊 Market Watch:

Kalshi raises $185M to bring prediction markets mainstream

Valued at $2B, Kalshi is now the most regulated (and well-funded) bet on event-driven crypto finance

Prediction markets just got their breakout moment.

Kalshi, the U.S.-based event contracts platform, has raised a $185 million round, pushing its valuation to $2 billion. The raise was led by Paradigm, with participation from Sequoia, Multicoin, and other major VCs.

This marks a turning point for regulated betting markets, especially ones tied to political outcomes, elections, and real-world events. Kalshi CEO Tarek Mansour confirmed the funding will go toward expanding the tech team and onboarding more brokerages. The platform is already live on Robinhood and Webull, with more integrations coming.

In the past year alone:

• Volume is up 100x

• User base grew 10x

• Active markets increased 5x

• And the platform logged 875M+ in election-related trading volume during the last U.S. cycle

Legal win unlocks full potential

After a long legal battle with the CFTC, Kalshi finally won the right to offer political prediction contracts, a first in the U.S. in over 100 years. The court ruling and CFTC’s withdrawal of appeal removed one of the last big obstacles.

Now Kalshi is scaling:

• Donald Trump Jr. joined as senior advisor

• It now supports BTC, SOL, USDC, and WLD deposits via Zerohash

• Sports prediction volume exploded — making up 79% of all U.S. activity in March–April

Kalshi vs. Polymarket:

Kalshi’s biggest rival, Polymarket, is also raising a round ($200M at a $1B valuation) and boasts more open interest across its high-volume presidential prediction markets. But there’s a catch, Polymarket is not licensed to operate in the U.S.

That makes Kalshi the most regulatory-compliant, broker-integrated, and now best-funded player in the prediction markets game.

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⚖️ Regulation Watch:

SEC might allow “In-Kind” crypto ETF redemptions

Hester Peirce hints at a major shift that could let investors redeem ETFs directly in Bitcoin

We might be getting closer to a world where crypto ETFs actually pay you out in crypto.

This week, SEC Commissioner Hester Peirce dropped a not-so-subtle hint that “in-kind redemptions” for Bitcoin ETFs are likely on the horizon, a change that would allow investors to redeem their ETF shares directly for BTC, instead of cash.

Right now, all U.S.-approved spot Bitcoin ETFs operate under a cash-only model, a structure the SEC enforced when the first wave of ETFs went live in January 2024. But the industry has been pushing hard for a more crypto-native option.

What’s happening:

• Nasdaq filed a rule change (Form 19b-4) on behalf of BlackRock in January

• The change would let ETF issuers create/redeem fund shares using crypto assets directly

• The SEC is currently reviewing the proposal and opened the door for public comments

• May 13 marked the start of formal proceedings under Section 19(b)(2)(B)

During a recent panel, Peirce confirmed the agency was looking closely at the model and acknowledged strong interest from the crypto industry. But she also made it clear: “I’m not making any promises.”

Why this matters:

“In-kind” redemptions would let investors:

• Withdraw actual Bitcoin from an ETF (e.g. to a self-custody wallet)

• Avoid the extra friction of converting shares to cash first

• Increase tax efficiency and reduce costs — especially for large or institutional holders

Vivian Fang, a finance professor at Indiana University, used a simple metaphor: You want your one egg back, I’ll give you your one egg back. I don’t have to care what it’s worth at the moment.

That’s the essence of in-kind: you’re holding real BTC inside the ETF, not just a cash equivalent.

Other ETF giants want in too:

• Cboe and VanEck have filed similar requests

• In April, BlackRock’s regulatory team met with the SEC’s Crypto Task Force to discuss how it could work

• Bloomberg analysts say in-kind models could significantly improve ETF trading efficiency

The catch?

Even if in-kind redemptions are approved, retail investors may still opt for cash payouts. But this move would lay the groundwork for more efficient institutional flows, self-custody options, and broader DeFi integrations in the future.

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Market-moving headlines 🔥

💰 Stellar’s massive airdrop

On June 26, 2017, Stellar announced a massive 1:1 Bitcoin–Lumens (XLM) airdrop, offering up to 16 billion XLM (~16% of its supply) to anyone holding BTC at the blockchain snapshot taken that day .

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