Coinbase introduced a product called Wallet-as-a-Service (WaaS), which allows companies to create fully customizable web3 wallets within their own apps with user onboarding as simple as in web2 applications.

Coinbase argued that the complexity of wallets remains a major challenge due to mnemonic requirements (seed phrase backup recovery) and counterintuitive UIs, in a blog post released today that The Block received an early copy of. That's despite the opportunities available for brands in web3 to create new revenue streams and strengthen user engagement, it said.

Using Coinbase WaaS, companies can 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.