Coinbase Unveils Smart Wallet, Aiming to Bring 1 Billion Users to Crypto

In a move geared towards simplifying DeFi access, leading U.S. crypto exchange Coinbase has launched its highly anticipated Smart Wallet. Promising easy setup and gasless transactions, the wallet targets newcomers to the decentralized finance space.

Siddharth Coelho-Prabhu, Coinbase’s senior director of product management, introduced the Smart Wallet in a recent blog post. He highlighted its key features, including industry-standard Passkeys and compatibility with various networks like Ethereum, Optimism, and Avalanche.

Unlike traditional wallets, Smart Wallets streamline the onboarding process and eliminate the need for multiple wallet installations. Users can create a secure wallet in seconds using methods like Face ID or Yubikey.

Coinbase’s initiative aims to overcome common challenges faced by DeFi users, such as slow transactions and fragmented balances across multiple wallets. By integrating with popular crypto libraries, developers can easily incorporate Smart Wallet functionality into their apps.

One standout feature is gasless transactions, made possible through “paymaster” sponsorships. This innovative approach allows developers to cover users’ gas fees, enabling free access to products and services.

Coelho-Prabhu emphasized Coinbase’s vision of a crypto-inclusive future, aiming to onboard over 1 billion users to the blockchain. The Smart Wallet launch coincides with Coinbase’s “On-Chain Summer” rewards campaign, offering incentives for developers to integrate the wallet into their applications.

While Coinbase’s Base layer-2 scaling network for Ethereum has seen significant growth in total value locked, scalability issues persist. Despite challenges with scaling and regulatory tensions, Coinbase remains committed to advancing De-Fi accessibility through its Smart Wallet innovation.