Coinbase is expanding its wallet-as-a-service offerings to address the challenges faced by developers when building Web3 applications. The crypto exchange is developing two new wallet solutions specifically focused on facilitating integration and balance transfer across Ethereum Virtual Machine (EVM) applications, particularly for developers transitioning to its layer-2 blockchain, Base.
One of the newly introduced features is a smart wallet designed to enable users to seamlessly transfer their balances across different EVM-compatible applications integrated with the Coinbase Wallet SDK. The second feature is an embedded wallet that empowers developers to incorporate noncustodial white-labeled wallets into their applications.
According to Coinbase, both features are strategically designed to alleviate developers’ concerns about user experience when creating Web3 products. This initiative reflects Coinbase’s commitment to continuously improve its services based on customer feedback and industry insights.
This move expands Coinbase’s portfolio of wallet-as-a-service products, which allows developers to seamlessly integrate digital wallets into their applications without the need to develop the underlying technology from scratch. This approach is particularly beneficial for companies seeking to incorporate digital assets into their offerings.
Wallet-as-a-service is a widely adopted offering in the crypto space, with competitors like BitGo also offering similar services that include custodial and noncustodial wallets for enterprises. Both Coinbase and BitGo leverage multiparty computation (MPC) technology to ensure secure and efficient wallet operations, with Coinbase utilizing its proprietary MPC protocol.
Recently, Coinbase made headlines by discontinuing support for native Bitcoin (BTC) tickers on its merchant payment platform, Coinbase Commerce. This decision was attributed to challenges in implementing recent updates to its EVM payment protocol for Bitcoin.