Base completes Cobalt upgrade, adds new tools for tokenized assets

Base’s Cobalt upgrade, activated on Wednesday, introduces conditional transactions and enhanced controls for tokenized assets on the Ethereum layer-2 network. This third major upgrade expands Base’s B20 token standard, enabling issuers to apply multiple compliance checks to a single asset. For instance, an issuer can mandate recipients to undergo identity verification, accredited investor status, and exclusion from sanctions lists.

The update also allows issuers to schedule corporate actions like stock splits without altering the underlying token balance. Additionally, issuers can grant authorized administrators the authority to transfer tokens from a holder’s wallet without explicit consent, complete with a public note attached to the transfer. Base retains the power to decide on the feature’s activation and who can utilize it.

Cobalt also introduces Validity Transactions, enabling users to submit transactions that only become eligible for inclusion when specific on-chain conditions are met. This empowers traders to control the timing of their transactions. For example, a trader could submit a swap that only becomes valid if an asset reaches a predetermined price before a specific block deadline.

Base holds the transaction until the conditions are evaluated against the chain’s state during block formation. The transactions remain private until inclusion in a block. This upgrade follows Base’s expansion into tokenized finance, with the activation of B20 as a native token standard for stablecoins, real-world assets, and fungible tokens on July 8.

Base’s executive, Jesse Pollak, acknowledged the network’s misstep towards creator-focused apps and emphasized the growing importance of financial applications, including trading and payments, in shaping Base’s future as a blockchain for global finance.