The U.S. listed cryptocurrency exchange Coinbase announced on Wednesday the official launch of a new “Smart Wallet,” which features ease of use, no mnemonic assistance, and fee-free transactions, among other characteristics. The wallet initially supports Ethereum, Base, and 8 other major networks, with plans to provide support for more networks in the future.
Coinbase aims to address the biggest pain points in the current cryptocurrency experience with the introduction of the Smart Wallet, including complex onboarding processes, expensive network fees, and mnemonics. The Smart Wallet offers a simple and fee-free on-chain experience, supports multiple chains, integrates major applications, and aims to make blockchain usage as easy as logging into a website.
Coinbase claims that the fee-free aspect of the Smart Wallet is based on developer sponsorship, so it is not entirely free. The wallet is designed to simplify the onboarding process and reduce the number of transactions that need to be signed, making it easier for users to transition to on-chain transactions. For existing Coinbase Wallet users, the company plans to build migration tools within the Coinbase Wallet app in the coming months to support the Smart Wallet.
The Smart Wallet allows users to create a free and secure self-custodial wallet in seconds, simplifying the onboarding process and enabling users to use their Coinbase balance on-chain without the need to recharge gas fees or struggle with cross-application portability. Users can easily mint NFTs, trade on decentralized exchanges, or diversify investments through DeFi applications with just a few clicks, enjoying a smooth and intuitive experience without sacrificing self-custody or security.
The main advantages of the wallet include easy onboarding, easy on-chain payments using self-custodial wallet balances or Coinbase account balances, portability across applications, and fee-free transactions. Developers have the option to provide a fee-free experience and sponsor customer transactions through payment proxy integration.
Coinbase also offers a web application for the Smart Wallet, which includes features such as asset and identity management, purchases, sending, exchanging, NFTs, and transaction history, serving as the primary platform for Smart Wallet users to manage their wallets. The Smart Wallet initially supports Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB, Zora, and plans to add support for more networks in the future.