Coinbase Wallet Unveils a New Instant Messaging Feature
- Coinbase launched its self-custodial wallet in 2017.
- The crypto exchange said the new messaging feature will help reduce crypto-related fraud.
- The US Securities and Exchange Commission (SEC) recently filed a suit against Coinbase.
Coinbase has launched a new service that allows its users to communicate with each other using encrypted messages via the Coinbase Wallet. The addition is a huge improvement to the self-custodial wallet, which prior to today only allowed users to buy, and sell cryptocurrencies, collect NFTs, and bridge assets across different chains.
The new feature leverages the Extensible Message Transport Protocol (XMTP), which enables users to interact using blockchain addresses such as cb.id,.eth, or Lens user names. Lens is a social media network that also uses the XMTP feature.
Coinbase, in a press statement, said that the new messaging feature will enable more people to interact with blockchain and also increase crypto adoption. The crypto exchange added that the messaging feature was launched to reduce crypto-related fraud.
Users will no longer be required to rely on an alternative messaging platform where the receiver’s Web3 identity might be hard to verify. Instead, the new feature would enable them to communicate directly with the owner of an address, thereby reducing the chances of incurring losses.
Furthermore, Coinbase claimed that adopting XMTP for messaging helped promote decentralization. Users can still maintain their XMTP chat histories and view them using alternative XMTP apps like Lenster or OrbApp even if Coinbase stops supporting its wallet or goes out of business.
Crypto users are already familiar with encrypted messaging apps like Telegram and Signal. However, Coinbase Wallet’s messaging feature provides a unique experience. It enables users to send and receive crypto payments, much like Venmo or the Cash App.
Circle noted that its messaging tool would support thousands of coins at launch, and users who perform transactions in Circle’s USDC stablecoin won’t be charged gas fees.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
