Ethereum News Today: Post-FTX, Coinbase's Base App Puts Users in Charge of Their Crypto

Coinbase announced the launch of a self-custodial wallet for its Base blockchain in 2025, positioning it as a key component of its broader "super app" strategy. The new Base App replaces the company's former Web3 Wallet, which was discontinued in July 2025 after users reported confusion over asset access and migration processes Forbes^[1]. The updated platform integrates decentralized finance (DeFi), social networking, messaging, and payments under a single interface, leveraging Coinbase's in-house blockchain and USDC stablecoin Fortune^[2].

The transition to Base reflects Coinbase's response to user frustrations with custodial models. Prior to the Web3 Wallet's shutdown, users criticized its hybrid custody structure, where Coinbase retained half of private keys, complicating asset recovery on unsupported networks like Binance Smart Chain Forbes^[1]. The new Base App emphasizes full user control, enabling direct interaction with Ethereum, Base, and other supported blockchains without intermediaries CNBC^[3].

A core feature of the Base App is its integration with USDC, powered by Coinbase's partnership with Shopify. The Base Pay system allows users to make instant, fee-free transactions via tap-to-pay functionality, with plans to expand to physical retail stores by year-end Fortune^[2]. Shopify merchants will also offer 1% cashback on USDC purchases, incentivizing adoption CNBC^[3]. The app's design aims to simplify onboarding for non-crypto-native users, with a focus on reducing friction in bridging assets from centralized exchanges to decentralized platforms Coindesk^[4].

Coinbase's move aligns with broader trends in self-custody adoption. Regulatory pressures and high-profile exchange failures, such as the 2022 FTX collapse, have driven users to seek control over private keys. A Coinbase survey found 78% of users lack understanding of self-custody practices, while 35% of crypto assets are now held in non-custodial wallets . The company's embedded wallet tools, launched alongside the Base App, aim to address this gap by enabling developers to integrate self-custodial features into third-party apps with minimal code .

The Base blockchain itself has undergone technical upgrades to support the new ecosystem. Block times on Base Chain were reduced from 2 seconds to 200 milliseconds, enhancing transaction speed and user experience Coindesk^[4]. The network, built on Optimism's OP Stack, is designed to scale Ethereum's security and interoperability while maintaining decentralization . Coinbase has joined Optimism as a core developer, contributing to the "Superchain" vision of interconnected L2s .

Analysts highlight the strategic significance of Base's launch. By leveraging its 100 million verified users and $80 billion in assets, Coinbase aims to drive utility beyond trading, positioning itself as a "financial services app" in the next 5–10 years CNBC^[3]. The app's focus on creator monetization and portable digital identities also aligns with the "Web3" ethos of user ownership Ecoinimist^[5].

Despite these advancements, challenges remain. The centralized sequencer model of Base, currently operated by Coinbase, raises concerns about censorship resistance Coindesk^[4]. Additionally, regulatory uncertainty in certain regions could impact adoption of self-custodial solutions . Coinbase has emphasized its commitment to decentralization, with plans to transition Base to a Stage 2 rollup by 2024, matching Ethereum's security standards .