In a significant stride, Coinbase, famous as a massive crypto exchange for retail clients, further rubber-stamped its footprint into the category of professionals. On Tuesday, it announced the inauguration of a Web3 wallet, primarily focused on aiding institutions to venture into NFTs and other aspects of decentralized finance, commonly referred to as DeFi. The new wallet, under the Coinbase Prime division, offers a gateway to crypto, NFTs, decentralized apps (dapps), and a broader DeFi spectrum. This move aligns with the push to assist institutions in bridging their interactions with on-chain applications.
The motive propelling this leap extends beyond the regular enterprises’ desire to participate in on-chain activities, such as stakeholder voting in DAOs or NFT drops. In Kevin Johnson, the vice president of institutional sales and trading at Coinbase’s illuminating insights, it fundamentally roots in their quest for a secure method to partake in those activities.
As such, the recently launched wallet offers clients a sanctuary to securely store tokens from allied networks. Concurrently, enabling instant access to self-custody funds while providing direct interaction interfaces with dapps and smart contracts. These offerings, however, exceed the ordinary wallets’ features, as it integrates security and safety aspects of their existing prime accounts into the wallet.
The highlights don’t shine brighter than the pertaining interest of institutions to be assured about the safety and security of their assets. In addition to such safety concerns, holding their hands on the wheel for controlling access its assets and making critical decisions is paramount. These necessities carved the path for this creation, now providing institutions on-chain accessibility while maintaining core safety requirements.
For accounts operating under multi-user arrangements with varied permissions and configurations, those configurations can be integrated with the wallet. This ensures the application of safety features to their direct on-chain transactions. Echoing functions of Coinbase’s retail wallet but with an added layer of requisites specific to institutions. These requisites encapsulate the need for multiple team members to gain wallet access.
In summary, the institutions receive tools that empower their drive to participate in on-chain applications. However, the question remains, while this product might bring ease of access for institutions, does it push the envelope far enough to evoke a mass migration towards on-chain applications? Only time can reveal the real impact of this newest technological advancement.
Source: Coindesk
