Coinbase’s Wallet-as-a-Service (WaaS) is a game-changer for crypto adoption 🤯; Revelot is putting its mouth where the money is 🤑; Weavr + Comma = 💣

FinTech is Eating the World, 10 March

Hey Everyone,

TGIF! This week was absolutely nuts 🥜 Today isn’t an exception as we’re looking at Coinbase’s Wallet-as-a-Service (WaaS) which is a game-changer for crypto adoption (why + Coinbases Master Plan + a generational investment opportunity); Revelot is putting its mouth where the money is (solid move + a deep dive into their latest financials), and Weavr acquiring Comma (why it’s a big one). Let’s jump straight into the hot stuff 🌶

Coinbase’s Wallet-as-a-Service (WaaS) is a game-changer for crypto adoption 🤯

The launch 🚀 Crypto pioneer Coinbase COIN 0.00%↑ just rolled out a new product called Wallet-as-a-Service (WaaS), which it says will allow companies to create fully customizable Web3 wallets within their own apps with user onboarding as simple as in Web2 applications. That sounds nice, right?

The USP 🥊 Coinbase argues the complexity of existing Web3 wallets remains a major barrier to adoption due to mnemonic requirements (seed phrase backup recovery) and counterintuitive UIs. Hence, the WaaS was born - it enables users to build native wallets straight into their own applications to create a more seamless experience without redirecting users to any external app or spending significant time, resources, and expertise developing their own solution.

More on this 👉 WaaS is a set of scalable and secure APIs designed to abstract away the complexities of blockchain infrastructure, providing access to Web3 wallets with the ease of use of Web2, while Coinbase handles everything under the hood.

The newbie-friendly approach enables users to create, access and restore wallets with authentication as simple as a username and password. Multi-Party Computation (MPC) technology helps keep user assets secure by splitting, encrypting, and distributing keys among multiple parties.

By using WaaS, companies can build their own wallets without having to set up and secure a complicated 24-word recovery phrase. If a user loses access to their device, the key to the web3 wallet remains safe and can be securely restored.

The design of MPC wallets means they are also natively cross-chain, offer cheaper transaction fees, provide more user privacy, avoid smart contract risks, and are interoperable with ecosystem standards.

Companies like Floor, Moonray, Thirdweb and Tokenproof have begun using WaaS to onboard web3 users across gaming, token-gated events, and digital marketplaces.

Why this is a big thing? 🤔 This new development from Coinbase has the potential not only to bend the curve of global crypto adoption. More importantly, WaaS can be the key pillar to onboard the next wave of Web2 and large enterprise companies onto crypto.

Here’s more on this, how it brilliantly fits into Coinbase’s Master Plan + the takeaway: