Coinbase, with the aim of attracting institutional investors to engage in NFTs and DeFi, has launched a new service dedicated to this. As part of its Coinbase Prime division, the exchange launched an institutional-grade Web3 wallet with advanced security and utility provisions. Coinbase’s interest in increasing the involvement of large investors in the digital assets sector comes at a time when the global Web3 market is expected to generate $3.25 billion (roughly Rs. 26,955 crore) by end of 2023.
The Coinbase Prime Web3 wallet will allow customers to store tokens and instantly access funds in their own custody. This will also help users interact with decentralized applications (dApps) as well as smart contracts.
“Institutional clients are looking for reliable access, but are struggling to find it in today’s environment. Until now, many of our own institutional customers have had to use a patchwork of fragmented solutions to access Web3. With our Web3 wallet, customers can easily access Web3,” the exchange said in an official message.
Coinbase Prime takes center stage
In May 2021, Coinbase launched its Prime service to meet the advanced trading and asset custody needs of institutional investors.
This new Web3 wallet will give users access to any dApp as well as tokens from supported networks.
“Since our Web3 wallet is integrated with Coinbase Prime, it leverages the same flexible team member permissions for enhanced security. This gives customers the ability to determine the appropriate level of access for each team member. team by assigning them a user role with a limited set of customizable permissions. Prime Web3 Wallet also uses the same hierarchy of entities and wallets, providing further customization based on how an institution is organized,” adds the exchange’s message.
To help businesses stay ahead of security threats, the wallet will provide approval alerts, transaction overviews, risk warnings, as well as an option to block suspicious dApps. The exchange claimed that its implementation of “multi-party computation (MPC)” system will never be able to expose users’ private keys. It also plans to provide its customers with a special self-guarding backup that could prove useful for the secure recovery of their keys.
This development comes at a time when Coinbase’s operations in India – which topped Chainalysis’s 2023 Global Crypto Adoption Index – are reeling.
After some of its users in India received notifications that their accounts were being deactivated in the coming days, rumors swirled that Coinbase might shut down its operations in the country altogether. Although the company said it remains committed to its Indian users, Coinbase has temporarily suspended new registrations from India for the time being.