Coinbase launches Web3 wallet for institutional, enterprise clients

Category: Blockchain Crypto

Coinbase has recently launched a Web3 wallet designed for institutional and enterprise clients involved in Web3, DeFi, and NFTs. This release is part of the company’s ongoing efforts to broaden the influence of cryptocurrency in the financial landscape.

The wallet uses MPC technology to empower clients to store tokens from supported networks, gain access to funds, engage with decentralized applications (dApps) and intelligent contracts, and leverage decentralized liquidity to trade an extensive array of assets.

The Web3 wallet will also grant immediate entry into DeFi, enabling clients to purchase, vend, create, oversee NFT collections, and manage Web3 social profiles. The wallet can house NFTs, DeFi assets, DAO assets, and crypto tokens from nine distinct networks. It also incorporates a swapping functionality to facilitate trading over 33,000 tokens across six major blockchain networks.

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,” said Coinbase vice president of institutional sales and trading Kevin Johnson.

This wallet emphasizes security, leveraging the same security measures as Coinbase Prime. For example, it incorporates 2FA with a physical YubiKey, adding an offline layer of protection to ensure clients have a secure environment.

It also provides alerts regarding compliance and security information, along with previews of transactions, guaranteeing that users access the platform with the necessary security measures and risk control in place, including approval alerts, compliance and security notifications, and transaction preview capabilities.

Streamlining crypto management in a secure manner

The institutional-grade wallet was introduced by Coinbase as a solution for cryptocurrency enthusiasts seeking to manage their digital assets more securely. The wallet has multi-signature protections, continuously audited to shield users from potential vulnerabilities and threats. The emphasis on security ensures a safe environment for users.

According to Coinbase, the wallet was also designed with simplicity in mind, making it accessible to all, including those new to the world of cryptocurrency. The intuitive interface simplifies navigation and operation.

The institutional-grade wallet also has an elaborate approach to asset tracking and recording. Coinbase enables detailed monitoring of assets, providing users with insights to stay informed about their investments.

This becomes increasingly vital as enhancing accessibility to Web3 is often hindered by the complexity of understanding and managing wallets. Coinbase seeks to address this challenge by utilizing Multi-Party Computation (MPC) to streamline the process of getting started with Web3. This approach not only simplifies entry but also offers improved recovery options as well as heightened security for cryptocurrency wallets.

MPC enables several parties to collaboratively process a function based on their private inputs, ensuring confidentiality. Integrating MPC into wallet private keys heightens security by necessitating at least two participants for valid signatures. Additionally, it simplifies key management by distributing individual key shares among participants, requiring the compromise of more than one key share to breach the wallet.

The encryption key of the backup is divided between the user and Coinbase with Wallet-as-a-Service (WaaS). Users can authenticate and recover their wallets by utilizing their portion of the encryption key. This authentication method employs cryptographic proof, ensuring the user’s privacy and legal identity are maintained.