Coinbase Introduces Smart Wallet – Self-Managed and Easily Accessible

The crypto exchange Coinbase has introduced a new generation of digital wallets with its Smart Wallet. This will allow users to organize their Bitcoin and other assets more easily than before and retain sole access.

Coinbase wants to revamp the topic of crypto wallets with a smart wallet

A blog post explains the differences and improvements compared to other popular wallets. Coinbase focuses on network fees, the process of setting up a wallet and complicated passwords and recovery phrases. You can simply log into the smart wallet using Face ID, fingerprint, Yubikey or an existing Google Chrome profile and no longer have to deal with complicated procedures and long passwords, promises Coinbase.

The Smart Wallet is not designed as a download app, but as a web app and therefore works on all operating systems. Coinbase advertises that it is free of charge. At launch, the Smart Wallet is compatible with eight networks, specifically Ethereum (ETH), Binance Coin (BNB), Optimism (OP), Arbitrum (ARB), Polygon (MATIC), Avalanche (AVAX), Zora and Base. It seems a bit strange that Coinbase did not natively link its Smart Wallet to the Solana (SOL) ecosystem right from the start , although increased use of Solana in Coinbase services had been promised by the end of 2023 .

However, the Smart Wallet is prepared to be connected to existing wallets from other providers such as MetaMask, which allows users to compensate for missing features. Coinbase names the decentralized finance (DeFi) division as the area in which the Smart Wallet shows its strengths and makes it easier for beginners to get started.

Instead of having to install and keep an eye on several wallets, DeFi activities should now be possible centrally from the Smart Wallet. Coinbase has set an ambitious goal of 1 billion users for the Smart Wallet. Over the summer, several campaigns have been set up aimed at developers and are intended to reward them for opening their apps to the Smart Wallet.

Conclusion: Smart Wallet has Coinbase behind it

Coinbase launched a network with its Layer 2 for Ethereum called Base in August last year that introduces people to blockchain solutions easily and inexpensively. The Smart Wallet is the next logical step to diversify the actual crypto exchange business model and tap into Web3 with DeFi, blockchain gaming and NFTs.

Competitor Binance launched its own Web3 wallet at the end of 2023. Things are happening with crypto wallets and the Smart Wallet could prove useful for everyday use. However, anyone who wants to keep their Bitcoin (BTC) and other cryptocurrencies safe in the long term should still not do without a hardware wallet like the one from Ledger.

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