The Base network activated the Cobalt update on Wednesday, adding conditional transactions and new control mechanisms for issuers of tokenized assets. This is the third major update for Base, which expands the B20 token standard, allowing issuers to apply multiple compliance checks to the same asset. For example, an issuer may require recipients to undergo identity checks, meet accredited investor status, and not be on sanction lists. Issuers can also plan adjustments for corporate actions such as stock splits. This update changes the number of shares displayed in wallets and applications without the need to mint or burn tokens and alter the underlying balance. Additionally, issuers can grant authorized administrators the ability to move tokens from a holder's wallet without their consent and attach a public note to such a transfer. Base noted that it is up to the issuers to decide whether to activate this feature and who can use it. Base itself cannot initiate such transfers.
The changes provide issuers with additional tools for compliance and administrative functions necessary for integrating traditional financial products into the blockchain. The Cobalt update also introduces Validity Transactions, allowing users to send transactions that become eligible for inclusion only when certain conditions are met. For example, a trader can send an exchange order that becomes available only if the asset reaches a certain price before a specified block deadline. Base will hold the transaction and evaluate the conditions according to the chain state at each block creation, with transactions sent through the system able to remain confidential until they are included in a block.
The Cobalt update is part of Base's recent enthusiasm in the field of tokenized finance. On July 8, Base activated B20 as the native token standard for stablecoins, tokenized real assets, and other exchangeable tokens, allowing issuers to create assets without creating individual token contracts. On July 16, Base creator Jesse Pollak stated that the network made a 'wrong bet' by focusing on applications for creators, content, and messaging, and fell behind in areas such as prediction markets and perpetual futures. Pollak added that financial applications, including trading and payments, will become more important as Base aims to evolve into a blockchain for global finance. Since then, the standard has seen significant adoption. On August 25, Coinbase launched tokenized US stocks on Base, issuing B20 tokens representing shares of Apple, Nvidia, Meta, and Alphabet. In the coming months, Base plans to reduce block time from two seconds to 200 milliseconds, introduce support for protocol-level sponsored transaction fees and batch transactions, and adapt some technical changes planned for the Glamsterdam Ethereum update.
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