In an effort to encourage institutional investors to get involved with NFTs and DeFi, Coinbase has launched a new service specifically for this purpose. Under its Coinbase Prime division, the exchange has launched an institutional-grade Web3 Wallet with advanced security and utility features. Coinbase’s interest in increasing the involvement of major investors in the digital asset sector comes at a time when the global Web3 market is expected to generate $3.25 billion (approximately Rs.26,955 crore) by the end of 2023.
The Coinbase Prime Web3 Wallet allows customers to store tokens and instantly access funds under their own control. It will also help users interact with decentralized applications (dApps) and smart contracts.
“Institutional customers have been looking for reliable access, but have struggled to find it in the current environment. Many of our own institutional customers have had to use a patchwork of fragmented solutions to access web3. With our Web3 Wallet, customers can easily access Web3,” the exchange said in an official release.
Coinbase Prime takes center stage
In May 2021, Coinbase launched its Prime service to meet the advanced trading and asset custody needs of institutional investors.
This new Web3 wallet gives users access to any dApp and tokens from supported networks.
“Because our Web3 Wallet is built into Coinbase Prime, it uses the same flexible permissions for team members for enhanced security. This gives customers the ability to determine the appropriate level of access for each team member by assigning them a user role with a limited number of customizable permissions. Prime Web3 Wallet also uses the same entity and portfolio hierarchy and offers further customizations based on how an institution is organized,” the exchange’s post added.
To help businesses stay ahead of security threats, the wallet offers approval alerts, transaction previews, risk alerts, and an option to block suspicious dApps. The exchange has claimed that the implementation of the ‘multi-party computation (MPC)’ system can never expose the private keys of the users. The company also plans to provide its customers with a special self-custody backup that could come in handy for safely recovering their keys.
The development comes at a time when Coinbase’s operations in India – which topped Chainalysis’ Global Crypto Adoption Index 2023 – are in turmoil.
After some of its users in India received notices of their accounts being disabled in the coming days, rumors emerged that Coinbase might shut down its operations in the country. While the company says it remains committed to its Indian users, Coinbase has temporarily halted new registrations from India for the time being.
