- The launch also comes with co-branded Nano X Coinbase Edition wallets available for a limited period
- The partnership is part of Ledger’s push to evolve into a software-focused firm
Crypto exchanges have been ramping up security efforts against the threat of losses, and Coinbase, the largest crypto exchange in the US, is the latest name to take action in this regard. The crypto exchange confirmed yesterday that it had added support for the Ledger Hardware Wallets onto its Coinbase Wallet browser extension.
Coinbase and Ledger have shown an insistence to enhance security as users can benefit greatly from an additional layer of protection. Hardware wallets such as Ledger’s enable self-custody as they are cold crypto wallets that store user private keys.
These wallets can only be accessed offline, and they provide a high level of authentication as they require physical interaction to verify transactions. They are different from the hot crypto wallets most centralised exchanges offer, which are vulnerable to security hacks as they are available online.
“We want to empower everyone to use dApps and access web3, and that requires building the easiest-to-use and most accessible self-custody wallet in the ecosystem. Today’s release solves another set of important user needs, including the ability to use a hardware wallet for enhanced security,” said Adam Zadikoff, the Coinbase senior product manager.
With the launch, Ledger confirmed that it also collaborated with Coinbase to release a co-branded Nano X Coinbase Edition of the hardware wallet available for a limited period.
Coinbase wants to take it further
Coinbase has observed that more and more users on the exchange are finding utility in crypto assets. In December, an executive from the exchange, Alesia Haas, told the United States House Committee on Financial Services that about 50% of all customers on the exchange are moving away from just buying and selling crypto – a shift from the investment phase into utility.
However, Coinbase must find ways to enhance user security with this growth, and it has committed to supporting more hardware wallets into the future. There are also plans to include hardware integrations for its mobile apps as well.
“For anyone dabbling in NFTs or DeFi, hardware wallets are a gold standard for keeping your assets secure,” Coinbase’s Director of Product Management Sid Coelho-Prabhu told Decrypt.
Ledger’s ambition
Ledger first revealed its partnership with Coinbase last December when the crypto hardware maker collaborated with the latter for a co-branded crypto debit card that was touted to be the entry point for new users into the world of crypto.
The wallet enabled users to directly spend their crypto or collateralise it to complete purchases. The collaboration was part of a larger drive by Ledger to shift from a hardware-focused firm into a crypto entity built mainly around its Ledger Live software application.