Cryptocurrency exchange Coinbase has launched a developer tool aimed at simplifying the onboarding process for wallets and enhancing technical capabilities. With the passage of pro-crypto legislation earlier this month, the trend of self-custody wallets in the U.S. is gaining momentum.
The embedded wallet tool provided through the Coinbase Developer Platform (CDP) allows developers to access the infrastructure of the upcoming Coinbase decentralized exchange, the company disclosed on Tuesday.
The toolkit offers native rewards for the USDC stablecoin issued by Circle, with USDC balances in the wallet earning an annual yield of 4.1% without the need for staking. According to the Coinbase developer platform, this yield can be retained by developers or passed on to users.
This newly developed developer tool is aimed at developers in the fields of decentralized finance (DeFi), gaming, payments, and Web3 social media. Meanwhile, Coinbase has also renamed its wallet to Base app as part of its Layer 2 network.
Pro-crypto regulations drive user growth.
Coinbase points out that the recently passed GENIUS Act and CLARITY Act are key to the development of on-chain finance and self-custody wallets.
The CLARITY Act establishes a regulatory framework for the digital asset economy while safeguarding self-custody rights, allowing users to hold cryptocurrencies without intermediaries. The legislation also affirms the role of self-custody in supporting DeFi and peer-to-peer transactions, which are core pillars of cryptocurrency.
At the same time, the GENIUS Act regulates dollar-backed stablecoins, creating possibilities for entering DeFi and other crypto sectors through digital dollar pathways. Industry insiders say favorable stablecoin regulations can drive more on-chain value by enabling the tokenization of real assets.
