What is Coinbase Wrapped LTC?

Coinbase Wrapped LTC (cbLTC) is a token that represents a 1:1 backing by native Litecoin (LTC) held securely by Coinbase. For every cbLTC in circulation, an equivalent amount of LTC is maintained in a custody solution provided by Coinbase. Users can redeem cbLTC for LTC by depositing it into their Coinbase accounts.

cbLTC is designed for compatibility with decentralized finance (DeFi) applications, allowing users to leverage their Litecoin holdings in various financial activities on-chain. This includes providing liquidity to DeFi protocols, using LTC as collateral for borrowing other cryptocurrencies, and utilizing it for payments. The structure of cbLTC facilitates a broader integration of assets within the financial ecosystem.