TLDR
- Coinbase launches Embedded Wallets developer tool through its Coinbase Developer Platform (CDP) to simplify Web3 onboarding
- The SDK offers built-in features like crypto onramps, token swaps, and 4.1% APY on USDC balances without requiring staking
- Users can onboard through email, SMS, or OAuth instead of browser extensions or seed phrases
- Tool targets developers in DeFi, gaming, payments, and Web3 social media sectors
- Launch comes as pro-crypto legislation like CLARITY Act and GENIUS Act gain momentum in the US
Coinbase has introduced a new developer tool designed to streamline wallet integration and onboarding processes for Web3 applications. The Embedded Wallets software developer kit is now available through the Coinbase Developer Platform.
The tool allows developers to integrate self-custodial wallets directly into their applications without traditional complications. Users can onboard through familiar methods like email, SMS, or OAuth authentication rather than browser extensions or seed phrases.
Hello from @baseapp
Coinbase Wallet is now much more than a wallet. Your new home to create, earn, trade, discover apps, and chat with friends all in one place. pic.twitter.com/LICIDJwvEE
— Base app (@baseapp) July 16, 2025
The SDK includes several built-in features aimed at improving user experience. These include crypto onramps for converting fiat currency, token swapping capabilities, and automated yield generation.
Users can earn 4.1% annual percentage yield on USDC balances held within the embedded wallets. This return requires no staking and can either be retained by developers or passed through to end users.
Infrastructure and Security Features
The Embedded Wallets tool operates on the same infrastructure that will power Coinbase’s upcoming decentralized exchange. This shared infrastructure provides enterprise-grade security and key management systems.
The platform offers secured key management and recovery services for users. Future updates will include support for smart contract accounts to expand functionality.
Developers maintain full control over the front-end user experience while Coinbase handles custody and compliance requirements. This division allows developers to focus on application features rather than regulatory considerations.
The tool is designed to eliminate what Coinbase describes as the tradeoff between user experience and custody risk. Traditional self-custody solutions often require technical knowledge that can barrier mainstream adoption.
Target Markets and Use Cases
Coinbase is targeting developers across multiple sectors with the new tool. Primary focus areas include decentralized finance applications, gaming platforms, payment systems, and Web3 social media.
The launch coincides with recent legislative developments in the United States. The House of Representatives passed the CLARITY Act before their August recess, establishing regulatory framework for digital assets.
Legislative Context
The CLARITY Act guarantees self-custody rights and allows users to hold cryptocurrencies without intermediaries. The legislation recognizes self-custody as essential for enabling DeFi and peer-to-peer transactions.
The GENIUS Act provides regulatory framework for dollar-backed stablecoins. This legislation creates potential pathways for increased DeFi adoption through digital dollar infrastructure.
Industry experts view these regulatory developments as catalysts for broader crypto adoption. Fabian Dori from digital asset bank Sygnum said the GENIUS Act enables confidence for developing new financial services applications.
The timing of Coinbase’s tool launch aligns with this regulatory momentum in the United States. The company positioned the embedded wallets as supporting the growth of onchain finance and self-custodied solutions.
Coinbase has also rebranded its consumer wallet application as the Base app, named after its layer-2 network. This rebrand reflects the company’s push toward creating an “everything app” for crypto users.
