Coinbase launched the Embedded Wallets feature to all developers using the Coinbase Developer Platform (CDP) late Wednesday evening, as announced by CEO Brian Armstrong.
The publicly traded crypto business has introduced a self-custodied wallet solution that integrates with Coinbase’s existing onramp APIs, allowing developers to keep full control over user experience design.
CDP Embedded Wallets purportedly eliminate the need for seed phrases, browser extensions, or pop-ups, allowing users to log in using familiar authentication methods, such as email or social media accounts.
Embedded wallets integrate onchain functionalities
Coinbase said the feature enables end-users to control their own wallets, where developers can never take custody of assets. The setup could allow builders to integrate blockchain functionality into payment systems, games, social platforms, and marketplaces.
Developers interested in using Embedded Wallets need a free CDP Portal account and an active project. Coinbase recommends Node.js 22 or later, a compatible package manager such as npm, and basic familiarity with React and TypeScript. They must also configure their domains within the portal before deployment.
The crypto exchange is offering USDC rewards of 3.85% annually to US-based developers, applied to balances held in Embedded Wallets, Smart Accounts, and Server Wallets.
CDP and Embedded Wallets: How the system works
CDP authenticates users logging in via email, OTP, or social logins and immediately generates a wallet tied to the session. The user can then send, swap, or stake assets, or interact with decentralized apps without needing to handle private keys directly. Temporary wallet secrets are stored locally on users’ devices, so neither Coinbase nor third parties can access them.
Users can also access their wallets securely on up to five devices per account in tandem with privacy standards.
In the webpage unveiling the product, Coinbase listed several use cases for Embedded Wallets, including instant peer-to-peer transactions for crypto-based merchant checkouts with built-in fiat ramps.
Social app developers can create their embedded wallets to collect tips or trade digital items directly within their interface, while marketplaces can simplify checkout and NFT transactions. DeFi applications with the wallets can bridge lending, borrowing, and yield farming services.
Embedded Wallets support several blockchain networks, starting with all EVM-compatible chains, including Base, Ethereum, Arbitrum, Polygon, and Optimism. The platform also provides full compatibility with Solana, supporting both its mainnet and devnet environments.
Coinbase partners with Amex to launch credit card
Alongside the launch of CDP Embedded Wallets, Coinbase is preparing to introduce a new American Express credit card in the United States this fall, dubbed the Coinbase One Amex. The card will be available exclusively to subscribers of the company’s Coinbase One membership program.
According to sources familiar with the product, the Coinbase Amex card will be etched with data from the Genesis Block, the first-ever block mined by Bitcoin creator Satoshi Nakamoto on January 3, 2009.
Cardholders will be able to earn up to 4% cashback in BTC on purchases, with reward rates scaling according to the user’s asset holdings on Coinbase. The card will carry no foreign transaction fees, and users can repay balances using linked bank accounts or crypto stored on the platform.
Similar to most American Express products, holders have exclusive access to the firm’s events and promotions. Bitcoin rewards earned through spending will not appear on 1099 tax forms, though tax obligations may apply when those rewards are later sold, Coinbase mentioned.
Elsewhere, the crypto exchange revealed on Wednesday that it has made a new investment in CoinDCX, one of India’s largest digital asset platforms. According to CoinDCX, the deal places the company at a post-money valuation of $2.45 billion.
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