Crypto exchange Coinbase announced that it will be rolling out new Web3 application functionalities for a limited amount of its 90 million registered users.
— RishiDean.eth (@rishidean) May 16, 2022
The new functionalities will allow a select amount of its app users to access dApps on the Ethereum network such as OpenSea and Uniswap in order to begin trading NFTs, as well as make swaps on decentralised exchanges (DEXs), and interact with DeFi lending protocols to borrow and lend funds.
Users will also be provided with a hot wallet that they can use to exchange funds. However, it will differ from traditional decentralized hot wallets such as MetaMask, as it will have a co-custodial set up to allow protection against device-related problems (meaning the private key for the wallet will be stored by Coinbase and can be personally stored by the user).
The expansion of Coinbase’s app and wallet functionality is something that will bring excitement to Web3 developers, who may have found it difficult to onboard new users to showcase their works. However, by nature, it seems slightly odd that it is facilitating activity to occur on NFT marketplaces which essentially rival its own NFT marketplace, Coinbase NFT.
Find out more about the functionalities here.