Institutional Web3 Wallets Are Coming (Here’s Why You Should Care)

TL;DR

• Coinbase just launched a Web3 wallet that targets institutional investors, so they can explore decentralized finance apps, decentralized social apps, and buy NFTs.

• This new wallet allows some very deep pocketed entities to start buying/exchanging/locking up different forms of crypto (most likely Ethereum)

• The mass purchase/custody of a scarce asset like ETH can lead to upwards price movement (demand + scarcity = value).

Full Story

Let’s talk institutional blockchain infrastructure.

Wait, no, don’t leave!

If you’re a crypto investor, this sort of thing often translates to money in your pocket down the line.

Coinbase just launched a Web3 wallet that targets institutional investors, so they can explore decentralized finance apps, decentralized social apps, and buy NFTs.

“Ok…so, the likes of JP Morgan might start a decentralized social account, buy some NFTs, and start staking some tokens? How does that translate to ‘money in my pocket?’”

Fair question!

All of these ‘explorations’ require blockchain transactions to take place.

Which means this new wallet allows some very deep pocketed entities to start buying/exchanging/locking up different forms of crypto.

The most likely one being Ethereum in one of its many forms.

The mass purchase/custody of a scarce asset like ETH can lead to upwards price movement.

(Demand + scarcity = value).

Add to that, the fact that every time Ethereum is transacted, part of the fee is burned/destroyed, while some goes to the folks processing the transactions – taking even more ETH off the market, while spreading some of that institutional wealth to those running the network.

It’s a hell of an economic construct!

Whether institutional investors are going to care enough about (what they most likely see as) niche assets/tools within the space?

No idea! But if/when the crypto markets start going up again, institutions will no doubt want to capitalize in some way.

Coinbase’s institutional Web3 wallet presents another entry point.