Crypto30 September, 20262 min read
Base Completes Cobalt Upgrade, Adds Tokenized Asset Compliance Tools On Ethereum Layer-2
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Cobalt upgrade activated on Base Layer-2, adds conditional transactions and issuer controls for tokenized assets. Validity Transactions allow on-chain conditions to gate settlements, enabling price or block deadline triggers.
Cobalt Upgrade for RWA
Base completed its Cobalt upgrade, a layer-2 update on Ethereum built on Coinbase that adds tools for tokenized assets. Base said Cobalt gives traders the ability to set specific conditions in their transactions, so users can define parameters and requirements that must be met before an operation is executed. Base also added compliance-oriented tools for issuers, including regulatory compliance checks directly on the network for tokenized assets.
Base introduced support for stock splits as a corporate mechanism, adjusting holders’ balances in a coordinated and transparent manner without leaving the network. Base further enabled forced token transfers to comply with court orders, regulatory resolutions, or asset recovery processes.
Conditional Transactions and B20
Validity Transactions let users submit transactions that become eligible for inclusion only when specified onchain conditions are met. A trader can submit a swap that becomes eligible only if an asset reaches a specified price before a set block deadline, with Base holding the transaction and evaluating conditions as each block is built. Base said transactions submitted through the system can remain private until they are included in a block.
Base creator Jesse Pollak said the network had made a “wrong bet” by focusing on creator, content and messaging apps and had fallen behind in areas including prediction markets and perpetual futures. Base activated B20 as a native token standard for stablecoins, tokenized real-world assets and other fungible tokens on July 8.
Issuer Controls and Admin Transfers
Cobalt expands its B20 token standard by allowing issuers to apply compliance checks to the same asset, including identity checks, qualified investors and sanctions screening. Cobalt lets issuers schedule adjustments for corporate actions such as stock splits, changing the number of shares displayed in wallets and apps without minting or burning tokens or altering the underlying balance. Cobalt allows issuers to give authorized administrators the power to move tokens from a holder’s wallet without the holder’s approval and attach a public note to the transfer.
Cobalt lets issuers combine checks such as identity verification, qualified-investor status and sanctions screening for a single asset under the network’s B20 standard. Base itself cannot initiate the transfer, and any such transfer must include a public explanation.