Coinbase (NASDAQ: COIN) Wallet, a self-custody cryptocurrency wallet, has included a direct messaging feature, enabling users to communicate with each other directly on the platform. With this addition, the wallet already offers various functionalities such as buying and selling cryptocurrencies, bridging digital assets across different networks, collecting non-fungible tokens (NFTs), and interacting with blockchain-based websites and applications.
This messaging functionality was introduced to help users with various issues such as inadvertent crypto transfers to incorrect addresses, false claims of ownership for .eth usernames, or fraudulent online profiles on social media platforms. To achieve this, Coinbase Wallet has integrated with XMTP, an open protocol and network designed for secure web3 messaging.
The feature works by transmitting messages through on-chain addresses, allowing wallet holders to send and receive messages to Ethereum accounts, including those associated with CB.IDs, ENS domains, and Lens profiles. According to Coinbase’s Q1 2023 shareholder letter, the wallet is present in more than 100 countries and facilitates cross-border transactions quickly and securely.
Moreover, the direct messaging feature will facilitate connections among NFT and POAP holders who share ownership of the same asset. This feature could foster new connections that had otherwise been missed, allowing users to make offers and strike a deal without intermediaries.
Despite the United States Securities and Exchange Commission’s (SEC) lawsuit against Coinbase last month, Coinbase Wallet has continued to introduce new features and has seen its stock price increase by over 50%. In response to the lawsuit alleging that the exchange allowed the trading of unregistered crypto securities, Coinbase’s chief legal officer, Paul Grewal, has stated that the company will continue to operate without significant changes.
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