The goal is to remove the technical complexity associated with independent digital wallets.
Coinbase wants to make wallet setup as simple as creating a username and password.
On Wednesday, Coinbase introduced a new service. That it claims would make Web3 technology more accessible for businesses and individuals by streamlining digital wallets.
Wallet as a Service is a suite of programming tools. That enables businesses to incorporate their branded digital wallets into their own applications. As stated, Coinbase’s goal is to remove the technical complexity associated with most independent digital wallets now available. And make wallet setup as simple as creating a username and password.
This development comes after Coinbase revealed plans to establish its own Ethereum layer-2 network dubbed Base. The firm has high aspirations for Base as a platform for developers to use in building and hosting decentralized apps.
Focusing More on Subscriptions and Services
As digital asset values have fallen, trading volume on Coinbase has decreased. Prompting the company to focus more on subscriptions and services. Despite being the largest crypto exchange in terms of trading volume in the United States, the firm had a loss of $2.6 billion in 2022 after earning $3.6 billion the year before.
The company’s head of product for Web3 developer platforms, McGregor, stated that the new Wallet-as-a-Service product has been in the works for over a year and was developed to be “use-case agnostic,” making it suitable for a wide variety of businesses, including those in the retail, gaming, and social media sectors.
According to McGregor, Base and Wallet as a Service are often seen as complementary elements of a supply and demand model. A Web3 app’s base encourages user engagement, and an increase in the number of users with digital wallets drives up demand for more app types.