Coinbase Wallet expands functionality, releases instant messaging feature

Coinbase Wallet, a cryptocurrency wallet that allows users to store their own digital assets, has unveiled a new feature that enables direct messaging between users within the platform. Prior to this addition, the wallet already offered a range of functions, including buying and selling cryptocurrencies, transferring digital assets across different networks, collecting non-fungible tokens (NFTs), and interacting with blockchain-based websites and applications.

The messaging feature was introduced to address various challenges that users might encounter, such as accidentally sending cryptocurrencies to incorrect addresses, false claims of ownership for .eth usernames, or the presence of fraudulent online profiles on social media platforms. To ensure a smooth and secure user experience, Coinbase Wallet has integrated with XMTP, an open protocol, and network specifically designed for secure web3 messaging.

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

In their Q1 2023 shareholder letter, Coinbase stated that the wallet has a global presence, serving users in over 100 countries. This allows users to conveniently send funds across borders using a single application, eliminating the need for traditional bank wire transfers that can take days to process.

The introduction of the direct messaging feature will also facilitate connections among NFT and POAP holders who share ownership of the same asset. This feature opens up opportunities for users to communicate directly with NFT owners, enabling them to make offers and negotiate deals without the involvement of intermediaries.

Despite the recent regulatory scrutiny faced by Coinbase, including a lawsuit filed by the United States Securities and Exchange Commission (SEC) alleging the exchange allowed the trading of unregistered crypto securities, Coinbase Wallet continues to introduce new features. The company’s chief legal officer, Paul Grewal, has affirmed that Coinbase will continue to operate without significant changes. Despite the legal challenges, Coinbase’s stock price (COIN) has increased by over 50% since the SEC lawsuit was filed.

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