Coinbase has unveiled an end-to-end encrypted, private, and portable messaging feature for its self-custody wallet product – Coinbase Wallet to enable users to connect directly through their wallet, engage with communities, as well as send payments across thousands of coins .
The goal is to give Coinbase Wallet users full control and ownership over their identity and chats by eliminating unnecessary risk and potential losses with the help of messaging.
Coinbase’s New Functionality
According to the official blog post, Coinbase Wallet has integrated with XMTP, which is an open protocol and network for web3 messaging. The new functionality aims to tackle common issues faced by Coinbase Wallet such as accidentally sending crypto to the wrong address, someone claiming ownership of an .eth username they do not possess, or fake online profiles on social media platforms.
In short, the wallet holders will be able to send messages to and from Ethereum accounts including ones with CB.IDs, ENS domains, Lens profiles, or Unstoppable Domains profiles. This flexibility in the service is expected to help users “make real connections, make offers on NFTs, and pay others directly,” the crypto giant said in a statement.
Furthermore, chats can be ported to any other XMTP-compatible app at any time. Users will also be allowed to send payments to others using the USDC stablecoin without incurring any gas fees.
“Today, we’re announcing a new way to engage with the crypto community with built-in messaging on Coinbase Wallet powered by the XMTP protocol. Messaging on Coinbase Wallet is end-to-end encrypted, private, and portable.”
Simplifying Transaction Process For Web3
The latest development is an important milestone for the Web3 wallet space as it expands the traditional offerings of crypto wallets from solely buying, holding, trading, and transferring of digital assets. Incorporating an encrypted interaction functionality essentially eliminates a major drawback of using a different messaging platform to interact with someone, confirm their credentials, then go back to the wallet to send or receive tokens.
Currently, Coinbase is embedded with the US Securities and Exchange Commission (SEC) for allegedly operating as an unregistered securities exchange, broker, and clearing agency. More recently, the financial regulator claimed that the crypto exchange was aware of violating securities law in the country.