- Coinbase is launching a Wallet-as-a-Service (WaaS).
- The offering will enable businesses to build web3 wallets for their customers, using only web2 skills.
- Initial customers for the launch include NFT marketplace Floor, gaming platform Moonray, and token-gated events site Tokenproof.
Digital currency platform Coinbase launched a Wallet-as-a-Service (WaaS) this week. The new offering is aimed to help any company build customizable wallets for their clients, bringing them into the web3 era.
The launch comes after Coinbase realized that web3 wallets were out of reach for many businesses. These on-chain wallets– which help users store digital assets, facilitate transactions, and act as a digital identity– are complex and require technical knowledge. Coinbase’s WaaS aims to simplify things by enabling companies to offer a digital wallet onboarding experience that requires only a username and password. Coinbase will also enable companies to offer the wallet within their own app, enabling in-app transfers of currency or digital assets all in one place.
The WaaS tool enables users to access a web3 wallet using a web2 interface. Also making things easier for those new to web3 is the security. With WaaS, users are not required to manage their own keys. Instead, Coinbase uses advanced multi-party computation to securely divide, encrypt, and distribute keys among multiple parties.
Coinbase has already secured a handful of clients for its WaaS, including NFT marketplace Floor, gaming platform Moonray, and token-gated events site Tokenproof. “Individuals will no longer have to come with knowledge of how the blockchain works in order to interact with the brands they love,” said Tokenproof Founder Fonz. “When users download the tokenproof app, we’ll help welcome them into web3 by creating their first wallet, which will be powered by Coinbase.”
With 1,110 verified users on its platform, Coinbase sees $145 billion in quarterly volume traded and has $80 billion in assets on its platform. The company went public in 2021 and now trades on the NASDAQ under the ticker COIN with a current market capitalization of $14 billion. Earlier this month, Coinbase acquired digital asset management company One River Digital Asset Management in an effort to bridge the gap between financial institutions and the crypto economy.