Coinbase Introduces Smart Wallet Solution for Custody-Free Crypto Management with Integrated Gasless Transactions

Coinbase Introduces Smart Wallet Solution for Custody-Free Crypto Management with Integrated Gasless Transactions
Photo by micheile henderson / Unsplash

Coinbase, a leading cryptocurrency exchange, has launched a new service named "Smart Wallet," aiming to revolutionize the way users interact with digital assets by offering a custody-free wallet that can be created effortlessly using modern identification methods like FaceID or a Google account.

The announcement of Smart Wallet by Coinbase is significant as it promises a more streamlined and user-friendly approach to managing cryptocurrencies. Siddharth Coelho-Prabhu, the company’s Product Management Director, highlighted the benefits of this new offering: "Coinbase Smart Wallets allow users to create a free, secure, non-custodial wallet in seconds. They simplify the registration process, reduce the number of transactions that need to be signed, and provide unrestricted access to the assets on your exchange account."

One of the most notable features of the Smart Wallet is its support for gasless transactions through Paymaster smart contracts. This functionality is particularly innovative as it enables developers to cover the transaction fees for their users as an incentive, thus fostering a more engaging and cost-effective user experience.

The Smart Wallet service supports a wide range of networks including Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB, and Zora. Coinbase also plans to expand this list, ensuring that the wallet's functionality grows to support the evolving needs of its users.

Additionally, the integration of Smart Wallets into the Coinbase Wallet app allows users a seamless transition to this new format. The flexibility in creating a wallet is enhanced by the multiple identification options available—users can choose from Face ID, Google Chrome profile, fingerprint identification, or a Yubikey account.

Coinbase has also made this new solution available through various aggregators such as WAGMI, Web3Modal, Privy, Dynamic, and Rainbowkit. The company encourages developers to update their Coinbase Wallet SDK stack to integrate these new features effectively.

This launch represents a strategic move by Coinbase to cater to a growing demand for more accessible and secure cryptocurrency management tools. By reducing the technical barriers associated with crypto transactions and account management, Coinbase’s Smart Wallet is set to offer a more inclusive and user-friendly platform that could attract a broader audience to the crypto ecosystem.

As the digital currency landscape continues to evolve, solutions like the Smart Wallet by Coinbase are crucial for fostering adoption and providing users with the tools they need to manage their digital assets safely and efficiently.