Coinbase Introduces Embedded Wallets for Developers

Crypto exchange Coinbase has launched a new feature for developers, enabling them to build self-custodial wallets directly into their applications.

Dubbed the Embedded Wallets software, this beta product aims to support the next generation of games, payments, DeFi, and social apps.

> CDP Embedded Wallets are now live in beta. 🚀
> Take full control of the wallet experience in your app, without having to manage backend infrastructure.
> Integrated with onramps, swaps, and 4.1% USDC rewards—all in one product.
> — Coinbase Developer Platform 🛡️ (@CoinbaseDev) August 5, 2025

This feature allows users to access a crypto wallet simply using an email address or SMS, particularly useful for stablecoin-related products, Coinbase noted in a post on X.

The exchange highlighted that “the world is adopting stablecoin-native rails which are global, programmable, and lower cost than conventional systems,” emphasizing an optimal time for launch given the recent regulatory developments under the GENIUS and CLARITY acts.

Users of Embedded Wallets won’t need browser extensions or seed phrases but will maintain control of their user interfaces. Stablecoins, typically pegged to the U.S. dollar, have evolved beyond just trading tools for cryptocurrency traders, attracting interest from major companies and governments looking to accelerate payment processes using blockchain.

President Donald Trump recently signed the GENIUS Act into law, establishing a framework for stablecoin operations in the U.S.

These Embedded Wallets will also assist developers in creating a range of applications, including crypto exchanges and games. A self-custody wallet ensures that the user maintains control of their private keys, in contrast to a custodial wallet where the company manages the keys.

Coinsbase, headquartered in San Francisco, remains the largest U.S. exchange, offering services to buy, sell, and engage in digital currencies, as well as tools for developers to create crypto-related products, including the Base Ethereum scaling network. Additionally, Coinbase has an agreement with the U.S. government for custody of confiscated digital assets.