TL;DR: A recent security incident at Coinbase—stemming from compromised third-party support agents—highlights the value of minimizing intermediaries in wallet infrastructure. This post explores how embedded wallets with user-owned, on-device custody offer a more secure foundation for mobile-first onchain apps.Lessons from the Coinbase IncidentIn a recent blog post, Coinbase revealed an extortion attempt involving cybercriminals who bribed overseas customer support agents. These agents were co...

As an app developer, choosing the right custody solution for your users has never been more complex—or more important. The landscape of Ethereum Virtual Machine (EVM)-compatible chains and Layer 2s (L2s) has expanded dramatically, and with it, the range of wallet solutions.

Embedded wallets have simplified onchain onboarding by removing the need to connect external wallets or save complicated seed phrases. Who controls and owns the keys to the embedded wallet? This blog breaks down the different types of embedded wallets available today and explains how custody decisions impact both developers and their users.