- 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 become a software-centric company.
Cryptocurrency exchanges have increased security efforts against the threat of losses, and Coinbase, the largest cryptocurrency exchange in the US, is the latest name to take action. The crypto exchange confirmed yesterday that it had added support for Ledger Hardware Wallets in its Coinbase Wallet browser extension.
Coinbase and Ledger have shown an insistence on improving security, as users can greatly benefit from an additional layer of protection. Hardware wallets like Ledger’s allow for self-custody as they are cold crypto wallets that store users’ private keys.
These wallets are only accessible offline and provide a high level of authentication, requiring physical interaction to verify transactions. They are different from the hot crypto wallets offered by most centralized exchanges, which are vulnerable to security attacks since they are available online.
“We want to empower everyone to use dApps and access web3, and that requires building the most user-friendly and accessible self-custody wallet in the ecosystem. Today’s release addresses another set of important user needs, including the ability to use a hardware wallet to improve security.” said Adam Zadikoff, senior product manager at Coinbase.
With the launch, Ledger confirmed that it has also collaborated with Coinbase to release a Nano X Coinbase co-branded edition of the hardware wallet available for a limited period.
Coinbase wants to go further
Coinbase has seen more and more users on the exchange find utility in crypto assets. In December, an executive at the exchange, Alesia Haas, told the United States House of Representatives Financial Services Committee that roughly 50% of all the platform’s customers are moving away from simply buying and selling cryptocurrencies, a change from the investment phase to that of public services.
However, Coinbase must find ways to improve user security with this growth and has committed to supporting more hardware wallets in the future. There are also plans to include hardware integrations for your mobile apps.
“For anyone dabbling in NFT or DeFi, hardware wallets are a desirable standard to protect their assets“, said to Decrypt Coinbase Director of Product Management Sid Coelho-Prabhu.
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 as the entry point for new users into the world of cryptocurrencies.
The wallet allowed users to directly spend their cryptocurrencies or collateralize them to complete purchases. The collaboration was part of a larger push by Ledger to evolve from a hardware-focused company to a crypto entity built primarily around its Ledger Live software application.