Coinbase is considering issuing a token for Base, its Ethereum layer-2 network, after previously stating that such a move was not on the table. Jesse Pollak, who leads Base, stated during the company’s Basecamp event held in Vermont that discussions around a potential token are underway.
Following the presentation, Base’s official X account stated that the project has entered an early research phase. The post stressed that no details have been finalized about how the token might function, when it could launch, or what governance model it might use.
Coinbase’s main account also clarified the company’s position, saying that Base is “looking into” a token but that there are no finalized plans. According to the statement, the goal is to evaluate whether a token can help speed up the broader mission of growing the Base ecosystem.
This marks a shift from earlier comments made by Coinbase’s leadership. In late 2023, CEO and co-founder Brian Armstrong said the crypto exchange was not prepared to issue a token for Base and was satisfied with the network’s initial performance. Months before Armstrong’s statement, however, Paul Grewal, the company’s Chief Legal Officer, suggested that the idea had not been ruled out, indicating some internal differences of opinion.
Moonwell founder Luke Youngblood, who previously worked at Coinbase, remarked that he was caught off guard by the news, recalling that Coinbase’s legal department had previously taken a highly cautious approach when it came to launching tokens. He suggested that the political environment under President Donald Trump’s administration, which has been friendlier toward digital assets, may have influenced the company’s change in outlook.
Base does not require its own token to operate. Unlike certain other layer-2 platforms that mandate payment of fees with a native asset, Base relies on Ethereum for transactions, inheriting security directly from the main blockchain. Still, launching a token could serve other purposes, such as governance or incentivizing users through rewards or possible airdrops, strategies that are common in the crypto space.
Even without a token, Base has quickly become one of the busiest Ethereum scaling networks. According to DefiLlama, the platform handled 13 million transactions across more than 860,000 active wallets on September 15 alone. By comparison, Arbitrum, another major Ethereum layer-2, handled fewer than 270,000 transactions on the same day.
By total value locked (TVL), Base held roughly $5 billion in assets, making it the sixth-largest blockchain network overall and the largest among Ethereum layer-2s. Arbitrum ranked next with $3.45 billion.
As more coins are introduced onto the crypto space, digital currencies and assets will deepen their reach, to the benefit of the entire industry, including players like Coinbase Global Inc. (NASDAQ: COIN).
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