Coinbase launches Embedded Wallets software developer kit

Coinbase CEO Brian Armstrong announced on Friday that the company plans to launch a new self-custody wallet called Base App later this year. He also confirmed that the wallet will be open to all users.

According to Armstrong’s disclosure, users can join the waiting list for the app. Relevant links to the app will also be provided in subsequent posts. Coinbase also states on its website that users can continue using the same Coinbase Wallet features in the Base App. The initiative follows the company’s push to create an all-in-one app for crypto users.

Coinbase launches Embedded Wallets software developer kit

In July, the crypto exchange launched the Embedded Wallets Software Developer Kit, which is available via the Coinbase Developer Platform. The firm said the new developer tool helps streamline wallet interaction and onboarding processes for Web3 applications.

The initiative aims to allow developers to integrate self-custodial wallets directly into their applications. The developer kit also offers several built-in features for users, including crypto onramps for converting fiat currency, token swapping capability, and automated yield generation.

Coinbase announced that the Embedded Wallets tool will utilize the same infrastructure that powers its Base App. The firm added that the shared infrastructure provides enterprise-grade security and key management systems.

Coinbase said it handles custody and compliance requirements in the tool, while developers maintain full control over the front-end user experience. The firm argued that the split allows developers to focus on application features rather than regulatory considerations.

The crypto exchange acknowledged that the wallet SDK came at a time of increased regulatory momentum in the U.S. The Trump Administration approved the CLARITY Act, which establishes a regulatory framework for digital assets. The legislation guarantees self-custody rights, allowing users to hold cryptocurrencies without intermediaries.

Despite the recent approval of significant cryptocurrency laws, Armstrong and other crypto executives condemned a new comprehensive cryptocurrency market structure bill introduced by Senate Democrats on Thursday. Blockchain Association CEO, Summer Mersinger, argued that the proposal was bad and would effectively ban DeFi in the U.S. by requiring KYC for non-custodial wallets, designating developers as financial intermediaries. 

Mersinger urged U.S. policymakers to continue engaging with each other and ensure the bill supports, rather than hinders, the U.S.’s leadership in financial technology. Chief Legal Officer at Variant, Jake Chervinsky, also referred to the legislation as a crypto ban, warning it would force all U.S. DeFi developers offshore.

Coinbase announced earlier this month that it’s seeking to expand its business capabilities and regulatory oversight beyond its existing framework. The initiative aims to pave the way for innovation and growth in the company.

Coinbase seeks a national charter to expand its custody business

Coinbase is seeking a National Trust Company Charter from the Office of the Comptroller of the Currency (OCC) to expand its custody business. The firm believes that its long history of security licenses holds Coinbase to the highest standards and positions the company to bridge the gap between crypto and traditional financial systems.

The crypto exchange argued that the charter would continue to open opportunities for the firm to launch new products beyond custody, including payments and related services. The company confirmed that Coinbase Custody Trust Company (CCTC) and Coinbase Inc. will continue to operate under the oversight of the NYDFS as the firm pursues a national charter.

Coinbase believes that, as progress is ongoing in Congress to propose a clear market structure, cryptocurrency is already being integrated into the fabric of the financial system. The firm stated that the OCC charter will streamline oversight for new offerings and pave the way for continued innovation in the cryptocurrency sector.

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