Base Expands Tokenized Asset Controls With Cobalt Upgrade

On Wednesday, Base rolled out its Cobalt upgrade, introducing conditional transactions alongside advanced issuer controls for tokenized assets as the Ethereum layer-2 network accelerates its integration of onchain finance.

As Base’s third major network enhancement, Cobalt builds upon the B20 token standard by enabling issuers to combine multiple compliance checks for a single asset. For instance, an issuer can mandate that token recipients pass identity verification, meet accredited investor requirements, and clear sanctions screenings. Additionally, issuers can schedule automated adjustments to handle corporate actions like stock splits. This particular feature updates the share count visible across wallets and applications without requiring token minting or burning, nor does it change the underlying balance.

Furthermore, the update permits issuers to grant authorized administrators the ability to transfer tokens directly from a user’s wallet without prior approval, while also attaching a public note to the transaction. Base emphasized that issuers retain full discretion over whether to activate this function and who holds administrative privileges, noting that Base itself has no power to initiate these transfers. Together, these modifications supply the compliance and administrative mechanisms necessary to bring traditional financial instruments onchain.

Cobalt additionally debuts Validity Transactions, empowering users to queue transactions that only become eligible for processing when designated onchain conditions are satisfied, thereby offering traders enhanced precision regarding execution timing. For example, a user can submit a token swap that executes only if a target asset hits a specific price threshold prior to a predetermined block deadline. Base retains the transaction and checks these conditions against the network state with the construction of each new block. According to Base, transactions processed through this mechanism can stay private until they are officially integrated into a block.

This release reinforces Base’s strategic pivot toward tokenized finance, following the network’s launch of B20 as a native stablecoin token standard on July 8.

Frequently Asked Questions

What is the Cobalt upgrade on Base?

Cobalt is the third major network upgrade for Base, an Ethereum layer-2 network. It introduces new conditional transaction capabilities and advanced compliance controls designed to support tokenized assets and onchain finance.

How do the new compliance controls work for token issuers?

The upgrade expands the B20 token standard, allowing issuers to apply multiple compliance checks simultaneously—such as identity verification, accredited investor status, and sanctions screening—to a single token.

What are Validity Transactions?

Validity Transactions allow users to submit trades that remain pending until specific onchain conditions, such as a designated price target or block deadline, are successfully met.

Can Base move tokens out of user wallets without permission?

No. While the upgrade allows issuers to give authorized administrators the ability to move tokens without holder approval, Base itself cannot initiate these transfers. Issuers decide whether to enable this feature.