Coinbase announces Wallet as a Service for companies

Coinbase ( NASDAQ: COIN ) said Wednesday it is launching Wallet as a Service , through which companies can build customizable blockchain wallets for their customers. These wallets can be offered directly in the companies' apps, without redirecting users to a separate website/app, with onboarding as simple as a username and password. Through WaaS, gamers can trade in-game items and currency, or new avenues can be created for loyalty programs such as token-based rewards, among other use cases. End users can explore web3 without managing a 24-word recovery phrase as WaaS is powered by multi-party computation technology, which allows a 'key' to be split between the end user and Coinbase ( COIN ), the company said in a blog post . MPC enables multiple parties to evaluate a computation without revealing private data held by each party. This ensures safety of self-custody even if a user's device is compromised. WaaS seeks to solve challenges faced by companies when it comes to blockchain wallets. "Traditionally, wallets made it difficult for users to benefit from web3's potential because of complex mnemonic seeds and counterintuitive UIs," said Coinbase ( COIN ). With WaaS, users have full control over their assets and will have the option of exporting their keys off platform. Shares of Coinbase ( COIN ) +2% . Earlier, Coinbase ( COIN ) acquired One River Digital Asset Management .