Crypto exchange Coinbase is launching an embedded wallets tool through its Coinbase Developer Platform (CDP) to help simplify wallet onboarding for developers, as self-custody and decentralized finance (DeFi) continue to gain momentum in the United States. The tool gives developers access to the same infrastructure that will power Coinbase’s forthcoming decentralized exchange.
Coinbase launches new developer tool to simplify wallet onboarding
This new toolkit includes features such as customizable wallets with rewards in USDC, the stablecoin issued by Circle. Users can earn 4.1% APY on USDC balances held within these wallets, without requiring staking. Developers can choose to retain this APY or pass it along to users.
The embedded wallets tool is targeted at developers in DeFi, gaming, payments, and Web3 social media sectors. The tool also aligns with Coinbase’s ongoing efforts to integrate self-custody features into its ecosystem, as evidenced by its rebranded Base app.
Pro-crypto regulation spurs growth of on-chain finance and self-custody
Coinbase’s new offering comes at a time when favorable regulatory developments, including the recent passage of the GENIUS Act and the House’s approval of the CLARITY Act, are seen as pivotal for the growth of on-chain finance. These regulatory frameworks support self-custody, allowing users to hold cryptocurrencies without intermediaries, which is essential for DeFi and peer-to-peer transactions.
The CLARITY Act establishes a comprehensive regulatory framework for digital assets while guaranteeing self-custody rights. Meanwhile, the GENIUS Act, which governs dollar-backed stablecoins, opens doors for greater adoption of DeFi and digital dollar-based systems. Industry insiders suggest that these developments will not only help stabilize the ecosystem but also encourage the tokenization of real-world assets, paving the way for further innovation in crypto services.