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Coinbase Wallet expands functionality, releases instant messaging feature

Published 07/12/2023, 04:43 PM
Updated 07/12/2023, 05:00 PM
Coinbase Wallet expands functionality, releases instant messaging feature - Coinbase (NASDAQ:COIN) Wallet, a self-custody cryptocurrency wallet, has revealed a direct messaging feature for users to communicate with each other directly on the platform.

Before this addition, the wallet already offered various functionalities such as buying and selling cryptocurrencies, bridging digital assets across different networks, collecting non-fungible tokens (NFTs), and interacting with blockchain-based websites and applications.

Sending and receiving messages through Ethereum accounts

The messaging functionality was introduced to address various challenges that users may have faced, including issues such as inadvertent crypto transfers to incorrect addresses, false claims of ownership for .eth usernames, or the presence of fraudulent online profiles on social media platforms.

To tackle these concerns and ensure a smooth and secure user experience, Coinbase Wallet has integrated with XMTP, an open protocol and network designed for secure web3 messaging.

According to a July 12 blog post, the messaging feature does not operate directly on the blockchain; the messages are transmitted through on-chain addresses. With the new feature, wallet holders can send and receive messages to Ethereum accounts, including those associated with CB.IDs, ENS domains, or Lens profiles.

According to Coinbase’s Q1 2023 shareholder letter, the wallet has a global presence, serving users in more than 100 countries, allowing them to conveniently send funds across borders through a single application instead of relying on traditional bank wire transfers that can take days to process.

Moreover, introducing the direct messaging feature will facilitate connections among NFT and POAP holders who share ownership of the same asset.

This feature could foster new connections that had otherwise been missed. The messaging functionality enables users to communicate directly with NFT owners, providing an opportunity to make offers and strike a deal without intermediaries involved.

A target on its back

Following the United States Securities and Exchange Commission’s (SEC) lawsuit against Coinbase last month, Coinbase Wallet gained a target as the company was accused of being an unregistered broker that enables users to conduct trades via third-party platforms, the exchange’s chief legal officer, Paul Grewal, has asserted that Coinbase will continue to operate without significant changes.

Even under regulatory scrutiny, Coinbase is still introducing new features. COIN’s stock price has increased by over 50% since the United States Securities and Exchange Commission (SEC) filed a lawsuit alleging that the exchange allowed the trading of unregistered crypto securities.

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