Base Activates Cobalt Upgrade, Enhancing Tokenized Asset Capabilities
Base has activated its Cobalt upgrade, expanding the capabilities of tokenized assets on the Ethereum layer-2 network. The update introduces issuer controls for tokenized assets and a new transaction mechanism called Validity Transactions.
The Cobalt upgrade extends Base's B20 standard to support multiple compliance checks and administrative rules applied to tokenized assets by issuers. This means that issuers can configure rules such as requiring recipients to complete identity checks, qualify as accredited investors, and avoid distribution to addresses tied to sanctions lists.
Validity Transactions allow users to submit transactions that don't become eligible for inclusion immediately. Instead, they remain eligible only when specified onchain conditions are met. This enables traders to submit conditional strategies that depend on timing and threshold triggers, while keeping their intent from being prematurely visible.
The activation of Cobalt follows Base's earlier push to make token issuance and interoperability easier for real-world assets. On July 8, Base activated B20 as a native token standard for stablecoins, tokenized real-world assets, and other fungible tokens, allowing issuers to create assets without building custom token contracts.
Base creator Jesse Pollak acknowledged earlier strategic missteps in the network's evolution, prioritizing creator, content, and messaging apps over financial applications. Since then, tokenized finance has gained traction on Base, with Coinbase launching tokenized US stocks on the platform in August. With Cobalt expanding B20's compliance and administrative options, the network is increasing the range of issuer policies that can be implemented as tokenized products scale.