Coinbase Global (Nasdaq: COIN), one of the world's largest cryptocurrency exchanges, has announced a new offering called Wallet-as-a-Service (WaaS). The new service provides crypto firms with scalable and secure wallet infrastructure APIs, allowing them to create and deploy fully customizable on-chain wallets.
In a Twitter thread, Coinbase also highlighted that its wallet infrastructure provides multi-party computation (MPC) cryptography, which removes the need to manage a complicated 24-word recovery phrase. This feature provides an additional layer of security and convenience for users.
Coinbase has already onboarded several crypto firms, including Tokenproof, Floor, Thirdweb, and Moonray, to its WaaS. The company believes that this new offering will help bring the “next hundred million consumers into Web3”, the next generation of the internet powered by blockchain technology.
According to Coinbase, more and more companies are realizing the potential of Web3, which is expected to generate a massive industry of new decentralized applications and services. With WaaS, these companies can empower their customers to access these new services more easily.
For instance, Fonz, the founder of Tokenproof, explained that when users download the Tokenproof app, they will create their first wallet powered by Coinbase, welcoming them into Web3. This, he believes, is a significant step towards making the space more approachable and accessible.
In addition to the WaaS, Coinbase also provides developers with a wallet software development kit (SDK), a payments SDK, the commerce API, and other blockchain integrations. The company has been expanding its offerings rapidly as it seeks to become the one-stop shop for all things crypto.
Coinbase's move into WaaS is significant as it enables crypto firms to focus on their core competencies without having to worry about building and maintaining their own wallet infrastructure. This is especially important as more firms enter the crypto space and competition heats up.
Moreover, as the industry matures, security and user experience are becoming critical factors that could determine the success of a crypto firm. With Coinbase's WaaS, firms can tap into Coinbase's expertise and reputation for security and trust to offer their users a better experience.
The launch of WaaS also comes at a time when the adoption of cryptocurrencies is increasing rapidly. With more people getting interested in the space, the demand for user-friendly and secure wallets is also growing. Coinbase's WaaS could help meet this demand by providing firms with the tools they need to create wallets that meet their users' needs.
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