Coinbase is offering a new service
- Coinbase has launched Wallet as a Service, a set of developer tools to simplify integrating custom digital wallets into applications, making it easier for companies to offer them to customers.
- The new product is use-case agnostic and aims to eliminate technical complexity associated with digital wallets, promoting the adoption of Web3 technology. Larger firms are expected to partner with Coinbase to use the product soon.
- Coinbase’s expansion into new services and subscriptions, including Wallet as a Service and Base, an Ethereum layer-2 network, is critical to the company’s future growth and survival, especially amid declining digital asset prices and trading activities.
Wallet as a service
Coinbase, a leading US-based cryptocurrency exchange, has announced the launch of Wallet as a Service, a set of developer tools designed to simplify the integration of custom digital wallets into various applications. The new product aims to eliminate the technical complexity associated with standalone digital wallets, making it easier for companies to offer them to their customers.
The Wallet as a Service offering, which has been in development for over a year, is “use-case agnostic” and equally viable for companies in different industries. It eliminates the friction that hinders the adoption of Web3 technology, according to Patrick McGregor, Coinbase’s head of product for Web3 developer platforms. He added that the company had created a system to provide wallets to literally every human on the planet.
Coinbase, one of the world’s leading cryptocurrency exchanges, recently announced its plan to launch Base, an Ethereum layer-2 network that will facilitate the creation and hosting of decentralized applications. According to McGregor, the two products – Wallet as a Service and Base – are independent but have a supply-and-demand dynamic that complements each other.
Base is designed to bring activity into a Web3 application, while more wallets create a greater demand for different applications. McGregor hinted that larger companies would soon partner with Coinbase to use Wallet as a Service product, but he did not disclose their names.
Coinbase CEO Brian Armstrong also acknowledged that many non-native crypto companies, including Starbucks, Adidas, Nike, Coca-Cola, and social media platforms like Instagram, Twitter, and Reddit, are incorporating crypto services into their products, creating a demand for crypto wallets. In summary, Coinbase’s announcement of the Base platform and Wallet as a Service product represents the company’s commitment to providing innovative solutions for the growing demand for cryptocurrency and blockchain-based services.
Coinbase and more services
Coinbase has been expanding its range of services and subscriptions amid a decline in digital asset prices that has led to reduced trading activity on its platform. Last year, the company lost $2.6 billion, compared to a profit of $3.6 billion in 2021, despite being the leading exchange in the US by volume. Coinbase has therefore sought to diversify its offerings, with McGregor, formerly of Google, playing a key role in developing the Wallet as a Service product.
The Coinbase Wallet as a Service product is a significant move aimed at simplifying the use of digital wallets for customers of various companies, thus promoting the adoption of Web3 technology. The fact that the company is working with household-name brands, which will use the product at a very large scale, shows that the new service has a real market need.
Coinbase’s product is also critical for the growth of the company, given the decline in digital asset prices and trading activities. The success of the product, combined with the launch of Base, is essential for Coinbase’s future, especially as crypto adoption continues to grow beyond native crypto companies.
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