Question 1

What is Coinbase Wrapped XRP (CBXRP)?

Accepted Answer

Coinbase Wrapped XRP (CBXRP) is a wrapped token backed 1:1 by XRP held in custody by Coinbase. For every CBXRP in circulation, an equivalent amount of XRP is held by Coinbase, including in cold storage. CBXRP is issued on Base as an ERC-20 token and represents XRP on-chain so it can be used in decentralised applications. Holders can redeem the underlying XRP by depositing CBXRP back into their Coinbase accounts.

Question 2

What is Coinbase Wrapped XRP (CBXRP) used for?

Accepted Answer

CBXRP allows XRP exposure to be used natively in on-chain finance on Base. Typical uses include providing liquidity in DeFi protocols, using CBXRP as collateral to borrow other assets, and making payments on supported platforms, without moving native XRP out of Coinbase custody.

Question 3

Supported Networks

Accepted Answer

- **Base (ERC-20):** CBXRP is currently available on Base. Supply and activity can be verified on BaseScan and via Coinbase’s proof-of-reserves materials.

Question 4

Minting and Burning Process

Accepted Answer

- **Minting:** When a user withdraws XRP from a Coinbase account to the Base network as CBXRP, Coinbase mints an equivalent amount of CBXRP and sends it to the user’s Base address. The corresponding XRP is held in Coinbase reserves.  
- **Burning:** When CBXRP is deposited to a Coinbase-specified address, the tokens are burned and the user’s XRP Ledger account is credited with the equivalent XRP from reserves.  
This workflow follows Coinbase’s wrapped-asset framework used across products and can be monitored via on-chain supply data and Coinbase’s proof-of-reserves disclosures.

Question 5

Custodianship and Governance

Accepted Answer

XRP reserves backing CBXRP are custodied by Coinbase using a combination of hot and cold wallets. Keys are encrypted, geographically distributed and require multiple operators, with reconciliations against blockchain data. Smart-contract control follows a role-based model including Admin, Owner, Blacklister, MasterMinter, Minter and Pauser, consistent with Coinbase’s wrapped-token contracts.

Question 6

Security Measures & Compliance

Accepted Answer

CBXRP relies on Coinbase’s wallet infrastructure, monitoring and audits. The wrapped-token contract family underpinning CBXRP derives from Coinbase’s open-source wrapped-tokens framework with lineage to cbETH, which has undergone third-party security review. Coinbase operates under AML/KYC regimes and holds registrations and licences in multiple jurisdictions.