Base Completes Cobalt Upgrade, Adds Compliance Tools for Tokenized Assets

Base, the Ethereum layer-2 network, has completed Cobalt, its third major upgrade, bolstering infrastructure for tokenized finance.

Cointelegraph reported on October 30 that Base activated the Cobalt upgrade and added a feature to its B20 token standard that allows multiple compliance conditions to be applied simultaneously. That enables issuers to impose several requirements on the same asset, including identity verification, accredited-investor eligibility and sanctions screening.

The upgrade also includes tools to handle corporate actions such as stock splits. Issuers can adjust the quantity displayed in wallets and apps without minting or burning new tokens. Base also added a feature that lets an issuer-designated administrator transfer tokens without the holder's approval and attach a public memo. The company said issuers determine whether to enable the feature and who can use it, while Base itself cannot initiate transfers.

Cobalt also introduces Validity Transactions, a conditional trading feature. It lets users submit transactions in advance so they are processed only when specific on-chain conditions are met. For example, a swap can be set to execute only when an asset reaches a specified price. Those transactions can remain private until they are included in a block.

The upgrade marks an extension of Base's tokenized-finance strategy. In July, Base introduced B20 as a core token standard for stablecoins and real-world asset tokens. In August, Coinbase issued Apple, Nvidia, Meta and Alphabet shares as B20 tokens. Base founder Jesse Pollak had previously said the company's focus on creators, content and messaging apps had been a mistake, and that it would shift its priorities toward financial applications such as trading and payments.

Base said it plans in the coming months to cut block times to 200 milliseconds from the current two seconds and introduce protocol-level support for gas sponsorship and bundled transactions.