Coinbase rolls out full-feature wallets in embedded kit for developers

Coinbase introduced CDP Embedded Wallets, letting developers offer full-feature wallets to end users. The lightweight SDK allows projects to add a wallet offering swaps, rewards and other Web3 features. 

Developer teams can now embed Coinbase wallets with full features, gaining access to all of the available infrastructure. The Coinbase Developer Platform (CDP) Embedded Wallets is a new service allowing all teams to give end users a seamless wallet onboarding experience. 

The embedded wallet will have full access to Coinbase DEX, including swaps, 4.15 USDC rewards, and access to Web3 assets and activities. 

For developers, the embedded wallets experience includes a lightweight SDK with minimal code required. The SDK is the only tool targeting developers with built-in USDC passive income. 

The new wallet offers expanded DeFi features following the recent introduction of the GENIUS bill, introducing more clarity for stablecoins and DeFi. This allows end users to retain self-custody wallets with full connectivity features. The wallet will also expand the reach of Coinbase DEX directly through the developer package. 

Coinbase allows app builders to avoid issues with custody

App developers face a tradeoff between offering a simple app experience, but with a form of third-party custody, or a feature-rich self-custodial wallet. Not all teams are capable of securing a good user experience, hence Coinbase’s decision to offer embedded wallets. 

With the SDK, all app developers can build their product without thinking about asset custody. The wallet allows multiple sign-in paths, including email, SMS or other authentication, with instant access to all features. The wallet requires a secure login, but no extensions or seed phrase storage. 

Coinbase noted that embedded wallets are currently available, but not all packages are developer-friendly. Users still demanded an “everything wallet,” combining multiple elements of the DeFi experience, including on-ramps for purchases, swaps, and access to yield with no additional setup for developers or end users. 

New wallet offers access to all Coinbase features

The new embedded wallets offer all the elements used in Coinbase’s own products. Native rewards bring 4.1% annualized on any USDC balance inside the wallet, with no extra steps for staking. Developers can choose to pass the earnings to end users or retain them to finance the project. 

The wallet will also offer MagicSpend, Swap, and data APIs. This allows developers to build a full-feature Web3 app without the need to stitch together multiple services. The wallet also keeps its encrypted private key secure while offering recovery backed by Coinbase, as well as support to export the keys and keep them in custody. 

The wallet package also includes smart wallet support with sponsored gas and spending permissions. Developers can access all those features without backend setup, while retaining full control of their app interface. The wallet launch is part of the drive to boost mini-app creation on Base, simplifying the path for all teams.

The wallets are thus suitable for social apps, on-chain gaming, DeFi frontends and other types of experiences. Use cases also include fintech and payments, tapping the existing Coinbase infrastructure. The wallet ensures end users do not think about the storage, but use any app seamlessly. The new kit is also expected to boost development on Base, its native L2 chain. 

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