SKN | Base Activates Cobalt Upgrade With New Controls for Tokenized Assets

Key Points:

• Base activated its Cobalt upgrade, adding conditional transactions and new administrative controls for tokenized assets.
• Issuers can apply multiple compliance checks, schedule corporate actions and authorize certain token transfers under issuer-defined rules.
• The upgrade strengthens Base’s focus on tokenized finance while introducing transaction conditions that can give traders greater control over execution timing.

Base has activated its Cobalt upgrade, introducing new transaction functionality and issuer controls designed to support tokenized assets as the Ethereum layer-2 network expands its focus on onchain financial applications.

Cobalt is Base’s third major network upgrade and expands the capabilities of its B20 token standard. The update allows issuers to combine multiple compliance requirements for a single tokenized asset while adding tools for corporate actions and controlled transfers.

Expanded Compliance Controls for Tokenized Assets

Under Cobalt, issuers can require recipients of a tokenized asset to satisfy several conditions simultaneously. These could include completing identity verification, qualifying as an accredited investor and not appearing on a sanctions list.

The framework gives issuers greater flexibility in structuring access requirements for assets that may be subject to regulatory or investor eligibility restrictions.

Cobalt also introduces functionality for scheduled corporate actions, including stock splits. Issuers can adjust the number of shares displayed in wallets and applications without minting or burning tokens or changing the holder’s underlying balance.

Authorized Transfers Add Administrative Flexibility

The upgrade also allows issuers to authorize administrators to move tokens from a holder’s wallet without obtaining approval for each individual transfer.

Issuers determine whether the functionality is enabled and which administrators have access. Base said the network itself cannot initiate these transfers. Authorized transfers can also include a public note explaining the transaction.

The functionality is designed to address administrative requirements that may arise with regulated or tokenized financial assets, where issuers can require mechanisms for corporate actions, compliance processes or other asset-management procedures.

Conditional Transactions Give Traders More Control

Cobalt also introduces Validity Transactions, allowing users to submit transactions that become eligible for inclusion in a block only when specified onchain conditions are satisfied.

For example, a trader could submit a swap that becomes eligible for execution if an asset reaches a predetermined price before a specified block deadline. Base evaluates the conditions against the blockchain’s state as blocks are produced.

Transactions submitted through the system can also remain private until they are included in a block, according to Base.

The functionality provides an alternative to submitting a transaction immediately and relying on external systems to determine whether market conditions are appropriate for execution.

Base Expands Its Tokenized Finance Strategy

Cobalt builds on Base’s broader push toward tokenized financial applications. The network activated B20 as a native token standard in July for stablecoins, tokenized real-world assets and other fungible tokens, allowing issuers to create assets without developing custom token contracts.

Base creator Jesse Pollak subsequently said the network had previously placed too much emphasis on creator, content and messaging applications and had fallen behind in areas such as prediction markets and perpetual futures. He said financial applications, including trading and payments, would become a greater focus as Base works toward becoming infrastructure for global finance.

The B20 standard has since been used for tokenized US equities. Coinbase launched tokenized versions of stocks including Apple, Nvidia, Meta and Alphabet on Base in August.

Faster Infrastructure on the Roadmap

Base is also planning additional infrastructure changes in the coming months.

The network said it intends to reduce block times from approximately two seconds to 200 milliseconds. It also plans protocol-level support for sponsored transaction fees and bundled transactions, alongside some technical changes associated with Ethereum’s planned Glamsterdam upgrade.

These developments would further expand Base’s infrastructure for financial applications, particularly as tokenized securities, stablecoins and other onchain assets require more sophisticated transaction and compliance mechanisms.

Outlook

Cobalt expands Base’s capabilities beyond basic token issuance by giving asset issuers additional compliance, administrative and corporate-action tools while introducing conditional transaction functionality for users.

The upgrade reinforces Base’s growing emphasis on tokenized finance and onchain trading. Its longer-term role in financial markets will depend on adoption by issuers, traders and infrastructure providers, as well as how tokenized assets develop within regulatory and institutional frameworks.