Coinbase’s New Wallet-as-a-Service Launched Despite Crumbling Crypto Market: Details

The crypto exchange is expecting to usher the next hundred million people into Web3.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 9 March 2023 17:04 IST

Coinbase’s New Wallet-as-a-Service Launched Despite Crumbling Crypto Market: Details

Photo Credit: Reuters

Crypto firms Tokenproof, Floor, and Thirdweb have tried Coinbase’s WaaS

Highlights

Coinbase crypto exchange is expanding its line of B2B offerings
The exchange aims to help Web3 firms create custom crypto wallets
Coinbase is offering a range of secure APIs for wallet makers

Coinbase has announced the launch of its Wallet-as-a-Service (WaaS) suite of offerings, expecting to add to the adoption of cryptocurrencies amongst the masses. This service will simplify the process of digital wallet onboarding for the next set of crypto investors. The crypto exchange is expecting to usher the next hundred million people into Web3, which will be the next phase of Web2, or Internet as we know today. Based largely on the blockchain networks, Web3 is aimed at bringing more autonomy to the presently existing government-controlled Internet.

Coinbase's WaaS will offer a programming interface for crypto companies to use and build their custom Web3 digital wallets. The crypto exchange claims to have loaded this service with a range of ‘scalable and secure' set of infrastructure APIs, for companies to choose the best for their own crypto wallet services.

“Companies can offer their users wallets directly in their apps with onboarding as simple as a username and password. Whether enabling gamers to trade in-game items and currency or creating new avenues for loyalty programs such as token-based rewards, WaaS is a powerful tool for companies looking to tap into the potential of Web3,” Coinbase wrote in its announcement post.

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3/ Users can create, access and restore their wallets with authentication as simple as a username and password without needing to worry about seed phrases.
— Coinbase (@coinbase) March 8, 2023

Crypto firms namely Tokenproof, Floor, Thirdweb, and Moonray have already tried Coinbase's WaaS, the company added in its tweet thread.

While Coinbase has decided to expand its suite of crypto services, some would argue that this is not the ideal market situation that could expediate the use of this service.

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Following the crypto winter of 2022 and the recession that follwed us into the post-COVID-19 era, several crypto companies drew the curtains on their operations amid market pressure.

A large number of employees working in the crypto sector were rendered jobless overnight in recent months.

To stabalise the turbulent US economy, President Joe Biden is exploring the possibilities of amending certain crypto rules to favour the national treasury.

Biden's upcoming budget announcement could double the capital gains tax rate for crypto investors this year. This could mean that long-term crypto holders with a portfolio of over $1 million (roughly Rs. 8 crore) could be asked to pay a higher tax of around 39.6 percent.

Just the speculations about tax changes around crypto in the US have contributed to the current lowered market sentiment.

Additionally, crypto-friendly bank Silvergate also announced the suspension of its services owing to the market tensions, leaving investors ready to run out of the high-risk investment sector.

Despite the ongoing rough days for the crypto sector, Coinbase CEO Brian Armstrong has time and again reiterated that the crypto industry does have the potential to score a glorious future.

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Further reading: Cryptocurrency, Coinbase, Crypto Wallet

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More