Using the formal introduction of its Web3 wallet, Coinbase – one of the most well-known cryptocurrency exchanges – continues on its path of growth. Enterprises are looking forward to what may transpire as CoinBase launches the Web3 wallet. This wallet is intended to make it easier for significant institutions to transact using Web3, NFTs, and DeFi.
The launch coincides with several businesses introducing new products meant to encourage the adoption of Web3. For instance, Web3 infrastructure provider MoonPay recently unveiled its investment division in collaborating with FinTech as well as Web3 firms.
According to a statement from Coinbase, this cryptocurrency wallet will rely on MPC technology to give users access to funds, the ability to engage with dApps and smart contracts, and the ability to trade a variety of assets using decentralized liquidity. It will also allow users to store tokens from compatible networks. This Web3 wallet will also give users direct access to DeFi, enabling them to purchase, manage, mint, and sell NFT collections and manage Web3 social accounts.
An Innovation to be Tapped Into
As CoinBase launches Web3 wallet, the move has been touted as a game-changing breakthrough. The company created the Coinbase Prime Web3 wallet specifically for institutional clients to reinvent security and reporting for businesses. It is designed to meet their essential requirements. According to Coinbase, this wallet can be included in an organization’s current workflows.
Customers can use their current Prime accounts to instantly access the wallet. The wallet offers a switch feature for trading over 33,000 tokens among six major chains and can store DAO, DeFi, NFTs, and crypto tokens from nine distinct networks. The wallet was created to save the history of all operations, including the full, precise transaction descriptions, permitting proper auditing without a need for consistent and transparent reporting.
According to Coinbase, the wallet enables users to create effective transaction processing and administer Web3 policies by the security standards of their organizations. For instance, businesses can specify the degree of access that users can have when assigning them responsibilities. Assigning roles is further facilitated by the Prime Web3 wallet’s ability to replicate the entity hierarchy the institutional client uses.
Privacy and Safeguards Prioritized
The Vice President of Institutional Sales and Trading at Coinbase, Kevin Johnson, remarked on the importance as Coinbase Launches Web3 Wallet, “More and more, we’re seeing corporations who want to participate on-chain in some way, whether that’s by doing an NFT drop or, in some cases, even voting in DAOs. But they need a safe way to do that.”
Because it uses the same security procedures as Coinbase Prime, Coinbase asserts that this wallet has security built into its core. As an example, this wallet has an actual YubiKey in addition to 2FA as an extra layer of offline security to give users safe systems.
The wallet is also equipped with user-friendly risk controls, including transaction preview capabilities, authorization alerts, security information, compliance alerts, and warnings on transactions, the company claims. With the release of this technology, Coinbase continues to advance significantly in the DeFi space.
Crypto enthusiasts and industrialists have braced themselves for the tremendous advantages that are projected to be incurred after CoinBase launches the Web3 wallet. CoinBase went ahead and reported this announcement in their company blog, writing, “We have seen tremendous demand from institutions to get direct and secure access to Web3 and DeFi.”
The firm also explained its motivation behind introducing this measure, “Institutional clients have been looking for reliable access but have struggled to find it in the current environment. Many of our institutional clients have had to use a patchwork of fragmented solutions to access Web3 up until now.”