Coinbase Unveils Seedless CDP Embedded Wallets With Transaction Security Policies

Coinbase has introduced a new feature within its Coinbase Developer Platform (CDP) called Seedless CDP Embedded Wallets, which are designed to enhance the security and programmability of cryptocurrency transactions within developer applications. These wallets allow developers to integrate self-custodial wallets into their apps with minimal code and full control over user experience [1].

The Seedless CDP Embedded Wallets operate within a Trusted Execution Environment (TEE), ensuring that private keys are never exposed and remain secure. This environment executes all policy checks to ensure transactions adhere to predefined security rules before approval [1]. The policy system, known as Wallet Policies, allows developers to define rules via an API or the CDP Portal. These policies can restrict actions such as limiting single-transaction amounts or blocking unknown addresses, thereby preventing potential malicious activities even if the application is compromised [1].

A key innovation is the implementation of programmable policies that developers can apply to transactions. For instance, a developer can set a rule allowing only transactions under 1 ETH or permitting transactions only to approved addresses [1]. These checks are automated, reducing human error and enhancing asset protection. Policies are stored in JSON format and include operations, decisions, and conditions that the system evaluates sequentially.

Coinbase aims to address the growing issue of crypto theft, which has exceeded $2.2 billion in 2025, largely due to poor key management and security practices [1]. By integrating security at the wallet level rather than as an add-on, the company is positioning Seedless CDP Embedded Wallets as a foundational solution for developers seeking to build more secure and trustworthy applications. The embedded nature of the wallets also eliminates the need for browser extensions, streamlining user access while expanding functionalities such as swaps and onramps [1].

This launch aligns with broader industry efforts to enhance crypto security. A recent example of the consequences of weak security is the March 2025 hack of the AIXBT bot, which lost over 55 ETH due to a lack of transactional safeguards [1]. The Seedless CDP Embedded Wallets aim to mitigate such risks by enforcing transaction rules at the signing level.

Overall, the Seedless CDP Embedded Wallets represent a significant advancement in enabling developers to build more secure crypto applications. With built-in security policies and a seedless design, the solution introduces a new layer of control and protection, reinforcing Coinbase’s role in shaping a more autonomous, intelligent, and secure crypto ecosystem [1].

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[1] Coinbase Launches Seedless CDP Embedded Wallets with Built-in Security Policies (https://www.livebitcoinnews.com/coinbase-launches-seedless-cdp-embedded-wallets-with-built-in-security-policies/)