July 12, 2023 at 16:40 GMTModified date: July 12, 2023 at 16:40 GMT
July 12, 2023 at 16:40 GMT

Coinbase Wallet launches XMTP messaging feature

Coinbase Wallet has launched a new messaging function that leverages XMTP, an open protocol designed for secure and private Web3 messaging.

Coinbase. Pic: Shutterstock

Coinbase Wallet has launched a new messaging functionality that enables users to communicate through text. This feature leverages XMTP (Extensible Message Transport Protocol), an open protocol designed for secure and private Web3 messaging.

According to Coinbase, the messaging feature was developed to address common challenges such as sending crypto to the wrong address, fake profiles and so forth. 

It also addresses the need for users to send small balances for address confirmation, as they can verify the connection between a person’s social profile and their wallet. In terms of privacy and accessibility, users have ownership of their chats, since they are tied to their wallet address and can be transferred to any XMTP-compatible app.

An excerpt from the announcement reads: “Today, we’re announcing a new way to engage with the crypto community with built-in messaging on Coinbase Wallet powered by the XMTP protocol. Messaging on Coinbase Wallet is end-to-end encrypted, private, and portable. It allows you to connect directly through your wallet, engage with your communities, send payments across thousands of coins (including gas-free USDC), and take your conversations across any other XMTP compatible app—giving you full control and ownership over your identity and chats.”

Coinbase streamlines Web3 messaging

A key advantage of the messaging feature introduced by Coinbase Wallet is its ability to consolidate fragmented communication channels. By enabling direct messaging to .eth, .cb.id, or .lens addresses, users no longer need to rely on separate applications for payments and messaging. This unification streamlines the user experience, making it more convenient and efficient to communicate and transact within a single platform.

XMTP co-founder and CEO Matt Galligan emphasised on this in an interview with Decrypt. He said: “An end user’s inbox is portable and interoperable with all other supporting apps, so one user’s choice to use a particular app versus another does not require their recipient to do the same.”

He then lauded Coinbase for choosing to align with existing ecosystems and become collaborative partners within those ecosystems instead of creating their own independent infrastructure.

“Building with XMTP further illustrates Coinbase’s deep commitment to building on top of protocols and embracing decentralization… Rather than building their own stack, they’re now committed partners to ecosystems they’re a part of.”

Coinbase’s latest feature release is another stride in their ongoing mission to transform Web3 identification and communication. As part of this initiative, the exchange had previously offered users complimentary Ethereum Name Service (ENS) usernames last September.