DEX trading on Coinbase unlocks seamless self-custody through CDP Embedded Wallets

Background

Coinbase’s DEX trading platform lets users access onchain markets directly from the main app. As part of the team’s mission to bring self-custody to the masses, we had to remove one of the biggest barriers to adoption in onchain trading: wallet onboarding.

Users expect Coinbase-level simplicity, but most DeFi products still require them to create and manage external wallets, memorize seed phrases, or navigate third-party auth flows. To deliver a truly integrated experience, the team building Coinbase’s DEX trading platform needed a wallet solution that felt seamless to users, yet still gave them full control over their assets.

Challenge

Our DEX trading feature needed a secure, self-custodial wallet experience directly in the Coinbase interface - without sacrificing performance, compliance, or usability. Key requirements included:

• Fast, secure wallet creation: Every user should get a wallet instantly, without seed phrases, 2FA, or confusing login screens.

• Seamless UX: Wallets should be invisible to the user, trading should feel just like it does in Coinbase’s centralized exchange.

• Flexible auth flows: The team wanted to avoid forced email logins or rigid authentication methods often required by third-party embedded wallet providers.

• Enterprise-grade security: Wallets had to meet Coinbase’s internal security bar, without compromising on speed or scale.

Existing wallet providers didn’t offer enough flexibility or security. Some enforced rigid UX flows and others didn’t meet internal requirements. The team needed something purpose-built.

Solution

Coinbase’s DEX trading platform adopted CDP Embedded Wallets: a fully white-labeled, API-first wallet experience designed for consumer apps.

With CDP Embedded Wallets, the team was able to:

• Provision wallets instantly within the Coinbase interface, using secure enclaves and device-based authentication - no passwords, seed phrases, or 2FA required

• Customize the UX fully, delivering a seamless trading experience that mirrors Coinbase’s flagship products

• Remove onboarding friction, improving the user journey and conversion by eliminating passkey setup and streamlining the first trade

• Meet internal security standards, giving users full custody with Coinbase-grade safety and infrastructure

By deeply integrating CDP Embedded Wallets, the team brought self-custody into the Coinbase ecosystem - without users feeling a difference.

Result

Our DEX trading platform got exactly what it needed: a seamless, self-custodial wallet experience that feels native to Coinbase. With onramps and swaps built in, CDP Embedded Wallets delivered an elegant solution. No extra apps, no trade-offs, just smooth onchain trading from the start.

Max Branzburg, Head of Product at Coinbase adds, "These Wallets let us deliver the best of both worlds: true self-custody and the seamless user experience people expect from Coinbase. We’re excited to keep building toward a future where onchain feels invisible and where every user has full access to any asset."

Learn More

You can learn more about Coinbase's DEX trading platform here.