Coinbase has launched Wallet as a Service (WaaS), a solution that allows businesses to create and deploy on-chain, user-friendly wallets for their customers.
This Wednesday afternoon, crypto exchange Coinbase announced the launch of its new Wallet as a Service offering, a “scalable and secure set of wallet infrastructure APIs.”
Concretely, with this service, Coinbase wants to offer a solution to the complexity of wallets, which remains a barrier to mainstream adoption, due to mnemonic requirements (seed phrases, or backup recovery) and austere and unintuitive interfaces.
This would allow any business to create fully customizable on-chain wallets for their customers,” the cryptocurrency exchange platform claims in a statement.
With Wallet as a Service, Coinbase thus hopes to enable businesses, including non-Web3 natives, to offer customizable and easy-to-use crypto wallets to their customers.
The service could also be useful in many cases, such as for crypto gaming applications where non-fungible tokens (NFTs) are used, or for companies that would like to integrate a wallet into an application in a way that is “almost invisible to the end user,” according to Patrick McGregor, Coinbase’s product manager
End users can explore Web3 without having to manage a complicated 24-word recovery phrase, as WaaS is powered by MPC technology, Coinbase says, noting that they only need a username and password to use their wallet.