Coinbase has announced its support for Celo’s migration from a standalone Layer-1 blockchain to an Ethereum Layer-2 network.

The transition is set to begin on March 25 with Coinbase temporarily suspending deposits and withdrawals of Celo’s native token, CGLD, during the upgrade.

Coinbase is supporting Celo’s migration from a standalone Layer-1 blockchain to an Ethereum Layer-2 network. The transition is set to begin on March 25 with Coinbase suspending deposits and withdrawals of CGLD for a period during the upgrade.

The cryptocurrency exchange announced that Celo’s blockchain will be undergoing a significant upgrade as it moves to become a compatible Layer-2 on the Ethereum blockchain. This transition aims to leverage the robust security and expansive ecosystem of Ethereum while retaining Celo’s own focus on low transaction fees and fast settlement times.

As a result of this strategic shift, users can expect enhanced scalability, reduced costs, and improved interoperability with Ethereum-based applications.

Coinbase has assured users that their CGLD tokens will be automatically converted during the migration, requiring no action on their part. However, the exchange advises against depositing CGLD during the migration window to avoid any processing delays.

Email notifications will be sent to users when services are disabled and when they have resumed.

Migration process

The migration process includes significant technical changes, such as faster block confirmations and the introduction of native bridging between Celo and Ethereum, which will enhance the security and efficiency of asset transfers.

Despite these changes, the token ticker for Celo’s Layer-2 network on Coinbase will remain as CGLD.

Celo’s Layer-2 is being launched with the same token economics and community governance as Celo’s original chain, ensuring a smooth transition for users and developers.

Coinbase is shutting down services for CGLD at 8pm PDT today and resuming them when the upgrade is complete.