Coinbase, in an effort to get institutional investors to engage with NFTs and DeFi, has launched a new service dedicated to doing so. Under its Coinbase Prime division, the exchange has launched an institutional-grade Web3 Wallet with advanced security and utility provisions. Coinbase’s interest in increasing the involvement of hawkish investors in the digital assets sector comes at a time when the global Web3 market is expected to reach $3.25 billion (approx. Rs. 26,955 crore) by the end of 2023.
The Coinbase Prime Web3 Wallet will allow customers to store tokens and get instant access to funds under self-custody. It will also help users to interact with decentralized applications (dApps) as well as smart contracts.
“Institutional customers have been looking for reliable access but have struggled to find it in the current environment. Until now, many of our own institutional customers have had to use a patchwork of fragmented solutions to access web3. With our Web3 walletcustomers can easily access Web3,” the exchange said in a official post.
Coinbase Prime takes center stage
In May 2021, Coin base launched its Prime service to meet the advanced trading and custody needs of institutional investors.
This new Web3 wallet will allow users to access any dApp as well as tokens from supported networks.
“Because our Web3 Wallet is built into Coinbase Prime, it leverages the same flexible team member permission for increased security. This allows customers to determine the appropriate level of access for each team member by assigning them a user role with a limited set of customizable permissions .Prime Web3 Wallet also uses the same entity and portfolio hierarchy, providing additional customization based on how an institution is organized,” the exchange’s post added.
To help businesses stay ahead of security threats, the wallet will provide authentication alerts, transaction previews, risk alerts, as well as an option to block suspicious dApps. The exchange has claimed that its implementation of the ‘multi-party computation (MPC)’ system can never reveal users’ private keys. It also plans to provide its customers with a special self-storage backup that can be useful for safely recovering their keys.
This development comes at a time when Coinbase’s operations in India – which topped Chainalysis’ Global Crypto Adoption Index 2023 – are rattled up.
After some of its users in India received notifications that their accounts were being deactivated in the coming days, rumors arose that Coinbase might suspend its operations in the country all together. While the company said it remains committed to its Indian users, Coinbase has temporarily paused new registrations from India for now.