Coinbase’s Self-Custody Wallet Service Gets Messaging Feature: All Details

Coinbase, amid it's on and off legal tussle with the SEC, has deployed an update to its self-custodial wallet service. Users of this wallet service will now have access to a messaging service as well. This will be an end-to-end encrypted service that will let users engage with other members of the community. Essentially, wallet holders will be allowed to send messages to and from Ethereum accounts. This update also shows other wallet players that capabilities of the wallets can be expanded.

As part of this update, Coinbase has also added the XMTP open protocol to its wallet service.

With this, the exchange aims to let users communicate with each other, in case crypto assets are transferred to a wrong wallet address. The messaging service would also let the Coinbase wallet users identify if somebody is impersonating or faking somebody else.

“Gone are the days when you had to send a small balance to confirm a wallet address. No more guessing if a person's social profile matches their wallet. Eliminate unnecessary risk and potential losses with the help of messaging,” Coinbase wrote in an official blog post announcing the development.

Users will also be able to contact people using other apps compatible with the XMTP protocol.

For the first phase of its rollout, Coinbase is deploying this wallet messaging service for a small subset of the users.

“We've helped millions of people claim their free web3 username powered by the Ethereum Name Service (ENS), that makes it easier for others to locate, remember, and send funds to your wallet through your username instead of a lengthy wallet address. Messaging builds upon these existing offerings and allows people to connect in a permissionless way with all the benefits of self-custody,” the blog added.

Coinbase had first released this wallet service five years ago.