Coinbase plans to sunset its on-exchange Web3 Wallet by June 2025, impacting user access to assets and causing widespread disruptions as communicated through official site statements.
The event highlights the challenges of centralized platforms shifting users towards enhanced self‑custody solutions, affecting crypto market dynamics and prompting immediate user adaptations.
Coinbase's decision to sunset its on‑exchange Web3 Wallet by June 2025 is causing user disruptions.
The announcement aligns with the company's strategy to shift towards new custody solutions, reflecting evolving industry trends.
Coinbase to Cease Web3 Wallet by June 2025
Brian Armstrong, CEO of Coinbase, emphasized the mission to enable economic freedoms through crypto. The Coinbase Product Team is spearheading upgrades, urging users to transition to the updated Coinbase Wallet or mobile app.
User Asset Access Challenged Amid Coinbase Shift
Users experience significant inconvenience accessing assets, particularly ETH and EVM‑compatible tokens. The transition highlights challenges as Coinbase pivots to focus on its self‑custody offerings, impacting trading behaviors.
Institutional adoption may rise via on‑chain payment infrastructure like USDC. While metrics on asset withdrawals remain unpublished, enhanced developer tools are poised to streamline transitions for industry participants.
DeFi Wallet Trends: Insights from 2022 Sunset
Similar wallet retirements, such as the 2022 DeFi wallet sunset, reported asset migration challenges. This recurring trend underscores the need for streamlined self‑custody solutions within the crypto landscape.
Experts suggest Coinbase's pivot enhances its core trading and payment operations. By fostering developer integration with networks like Base L2, Coinbase strengthens its strategic positioning in the evolving crypto economy.
"The mission of Coinbase is to enable economic freedom in the world. And we believe that crypto is a unique enabling technology to accomplish this mission.” - Brian Armstrong, CEO, Coinbase