Page 36 - GS230401
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NewProducts



                          Embed custom digital wallets


                                    directly into your app




                                                                a more fair and free place and human progress would ac-
                                                                celerate." A copy of the entire letter is available at: www.sec.
                                                                gov/Archives/edgar/data/1679788/000162828021003168/coin-
                                                                baseglobalincs-1.htm
                                                                Popular wallet styles

                                                                Coinbase supports an array of crypto wallets, the company
                  oinbase launched Wallet-as-a-Service (WaaS) in  stated, citing these popular styles:
                  March 2023, a set of developer tools designed to
                  drive  broad cryptocurrency adoption by mak-    • Hosted wallets: Cryptocurrencies held by a third par-
        C ing it easier for companies to embed customized           ty eliminates worry about losing keys or hardware.
        digital wallets directly into their applications. The solution   However, hosted wallets do not always provide all the
        also complements its Base solution for Web3 applications,   features and functionality of self-custody wallets.
        the company stated.                                       • Self-custody wallets:  The ability to directly access
                                                                    funds without relying on a third party service pro-
        Brian Armstrong, CEO at Coinbase, mentioned he has          vider is considered a plus but individuals also bear re-
        seen major brands, including Starbucks, Nike and Coca       sponsibility for remembering and safeguarding their
        Cola, become more receptive to Web3 applications, which     cryptocurrencies.
        rely on digital wallets.  Unlike traditional digital wallets
        that hold users responsible for securely storing wallet   • Hardware wallets: A physical device that's approxi-
        keys, WaaS uses multiparty computation (MPC), a form of     mately the size of a thumb drive is a secure way to
        cryptography that shares a private wallet key with multiple   store cryptocurrencies and can protect crypto even
        parties, eliminating the self-custody wallet's single point of   when a computer is hacked. However, these form fac-
        failure, he noted.                                          tors require more steps to set up and use and can be
                                                                    expensive.
        The Coinbase SDK provides backup functionality to help
        users maintain access to digital assets, Armstrong said,   Coinbase representatives noted that there are many ways to
        pointing out that Floor, Moonray, thirdweb, tokenproof   store cryptocurrencies and that some customers use more
        and other Web3 companies are using Coinbase's WaaS      than one type of wallet to take advantage of features and
        infrastructure.                                         benefits. For example, non-custodial wallets give users full

        Safe, trusted, easy-to-use platform                     control of their funds and hardware wallets provide an ex-
                                                                tra layer of protection.
        In a cover letter submitted with Coinbase prospectus to the   WaaS and Web3
        Security  and  Exchange  Commission,  in  May  2020,  Arm-
        strong stated that Coinbase is building a supporting infra-  WaaS provides individuals, developers and enterprises
        structure to power the crypto economy and share this new   with the full capabilities of Web3 without sacrificing
        technology with the world. While Coinbase partners and   simplicity, Coinbase representatives noted, adding that
        customers think of the company's platform as a safe, easy   users can create, access and restore their digital wallets
        way to buy, sell, store, save, spend and use cryptocurrency,   using simple authentication, comparable to username and
        he noted numerous customers use Coinbase as a primary   password. In addition, users fully control their assets and
        financial account.                                      can export keys off the platform at any time.

        "Coinbase is building a portfolio of different products and   Developers can use Coinbase APIs to build native wallet
        services that connect to this primary financial account, and   capabilities directly into their apps, the company added,
        we're enabling third-party products and services to be con-  to create on-chain wallets, enable Web3 interactions and
        nected as well," he wrote, adding that the company's ulti-  personalize customer journeys.
        mate aim is to create economic freedom. "The current finan-
        cial system is rife with high fees, delays, unequal access, and   Company: Coinbase
        barriers to innovation," he wrote. "In many countries, citi-
        zens don't have access to sound money, a functioning credit      Product: Wallet-as-a-Service
        system, or even basic property rights. If the world economy      Website: https://coinbase.com
        ran on a common set of standards, that could not be ma-
        nipulated by any company or country, the world would be          Contact: support@coinbase.com

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