Coinbase (NASDAQ:COIN)'s Base Network, an Ethereum-based Layer-2 scalability platform launched earlier this year, has hinted at the possibility of issuing a digital token in the future. Paul Grewal, Coinbase’s Chief Legal Officer, revealed this in a recent interview, adding that while there's no immediate plan for tokenization, they haven't entirely ruled out the idea.
The Base Network has been experiencing promising early adoption since its mainnet release on August 9. The platform currently ranks ninth in terms of total value locked (TVL), surpassing Solana with deposits amounting to $370.50 million. The increase in TVL is primarily attributed to increased activity on the Web3 social media platform Friend.tech and recent integration of well-regarded DeFi applications into the blockchain.
Despite the potential for a Base token, Grewal emphasized that their immediate focus with the Base Network is pushing the use of technology for new development. He also discussed Coinbase's ongoing interactions with the U.S. Securities and Exchange Commission (SEC), expressing optimism about working with the regulatory body to shape the crypto landscape and bring clarity to all stakeholders.
Grewal's comments come amid increasing anticipation from crypto market participants for a Base token release. This follows a trend of airdrop farming and token issuance by other Layer-2 protocols like Arbitrum and Optimism over the past year.
In addition to its potential for token issuance, Coinbase promotes Base as a bridge for users into the cryptoeconomy, providing a user-friendly default on-chain experience with access to products on various other chains. In line with this commitment, Coinbase continues to support a wide range of chains across its products.
Coinbase's advocacy for clear regulations on crypto is also worth noting. The company recently initiated a campaign calling for a US crypto bill and launched an advocacy campaign titled "Stand with crypto." The movement aims to unite the 50 million Americans associated with cryptocurrencies in various forms to join Coinbase in its cause for clear regulations on crypto.
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