Top-tier US-based crypto exchange platform Coinbase has reportedly introduced a Web3 application feature, including a hot wallet and browser available to a particularly chosen group of its mobile app users.

Specifically, the app will reportedly make it possible for users to tap into decentralized applications (DApps) on different Ethereum networks, nominally Uniswap and OpenSea.

The May 17 announcement by Coinbase’s director of product management Rishi Dean reportedly revealed that users qualified for the product will reportedly have the ability to commence trading on nonfungible token (NFT) marketplaces, carrying out swaps on decentralized exchanges (DEXs), and interacting with (DeFi) lending protocols to borrow and lend funds.

Together with the mobile browser that establishes a gateway into DApps, a hot wallet that users can use to exchange funds will also be available. 

Bearing some differences compared to decentralized hot wallet apps such as MetaMask, this hot wallet that Coinbase built will come with a co-custodial setup. 

This will reportedly mean that the private key for the wallet will be kept by the firm and can be personally stored by the user.

The wallet and DApp feature function use multi-party computation (MPC) technology, which offers a sufficient level of privacy for senders and receivers while making sure the accuracy level of a transaction is met.

Dean additionally revealed that sharing custody of the keys is a security functionality built with a primary goal of providing safeguarding for users against device-related issues. 

“This means if you lose access to your device, the key to your Dapp wallet is still safe and Coinbase can assist in recovery through our live support.”