Crypto exchange Coinbase is launching a developer tool aimed at simplifying wallet onboarding and boosting technical capabilities, as self-custody gains momentum in the United States following the passage of pro-crypto legislation earlier this month.
Offered through the Coinbase Developer Platform (CDP), the Embedded Wallets tool gives developers access to the same infrastructure that will power Coinbase’s forthcoming decentralized exchange, the company disclosed Tuesday.
The toolkit offers native rewards in USDC (USDC), the stablecoin issued by Circle. Users can earn 4.1% APY on USDC balances held within the wallets, without requiring staking. According to the Coinbase Developer Platform, this APY can either be retained by developers or passed on to users.
The new developer tool is being targeted at developers across decentralized finance (DeFi), gaming, payments and Web3 social media sectors. It arrives as Coinbase has rebranded its own wallet into an “everything app,” now called the Base app after its layer-2 network.
Related: The rise of ETFs challenges Bitcoin’s self-custody roots
Pro-crypto regulation to encourage the next wave of users
Coinbase pointed to the recent passage of the GENIUS Act and the House’s approval of the CLARITY Act as pivotal developments for the growth of onchain finance and self-custodied wallets.
The CLARITY Act establishes a regulatory framework for the digital asset economy while guaranteeing self-custody rights, allowing users to hold cryptocurrencies without intermediaries. The legislation also recognizes the role of self-custody in enabling DeFi and peer-to-peer transactions, which are core pillars of crypto.
Meanwhile, the GENIUS Act regulates dollar-backed stablecoins, creating potential pathways into DeFi and other crypto sectors via digital dollar rails. Industry insiders say favorable stablecoin regulations could drive more value onchain by enabling the tokenization of real-world assets.
In a recent interview with Cointelegraph, Fabian Dori, chief investment officer at digital asset bank Sygnum, said the GENIUS Act paves the way for innovations in financial services beyond stablecoins.
“By providing long-sought-after clarity, it gives confidence to organizations and issuers to develop original, innovative ‘killer apps’ that don’t just serve their customers’ current needs, but create demand for entirely new services, including payments,” Dori said.
Related: Tokenized money market funds emerge as Wall Street’s answer to stablecoins
