Coinbase Launches Seedless CDP Embedded Wallets with Built-in Security Policies

Coinbase introduces seedless CDP Embedded Wallets with built-in policies, enabling secure, programmable crypto transactions directly within developer applications.

Coinbase has launched a new product called Embedded Wallets through its developer platform. This service allows developers to add self-custodial crypto wallets directly into their apps. It has extremely minimal code and allows developers to have total control over the user experience.

CDP Wallets Run in Trusted Execution Environment for Key Security

The wallets belong to the CDP (Coinbase Developer Platform) of Coinbase. They do not require browser extensions and enable a wide variety of crypto capabilities, including swaps and onramps. This update has the capability of allowing users to use wallets within apps and still maintain complete control of their funds.

The policy system of this product is programmable, and this is what makes this product unique. Coinbase developed a system in which wallets obey rules whenever signing a transaction. Such rules are referred to as Wallet Policies and can be defined by a developer via an API or via the CDP Portal.

Among the most important characteristics, all the rules are executed in a Trusted Execution Environment (TEE). This implies that the private keys are not vulnerable and are never exposed. The system has a way of making sure that all transactions are done within strict guidelines before approval.

As an example, developers can impose restrictions such as: “Only support up to 1 ETH on a single transaction” or “block all non-known addresses”. Such guardrails prevent malicious activities, even when an app is hacked.

This security is significant since crypto theft is on the increase. In March 2025, the AIXBT bot was hacked and lost more than 55 ETH. It could not prevent risky activities because it lacked rules to prevent them, and the funds were stolen easily. CDP Wallets can help avert such issues by applying safety rules on the signing level.

Seedless CDP Wallets Bring Smarter Security to Developers

By the middle of 2025, the total amount of crypto stolen is more than 2.2 billion dollars. These losses are mostly as a result of poor security habits and management of keys. Coinbase has an intention to address this by making wallet security an in-built feature rather than an add-on feature.

CDP Wallets employ the use of simple rules such as allowlists, blocklists, value limits, and message checks to enhance safety. These are applied differently by developers to prevent fake messages, lock up unsafe pools, add secure controls to payments, and secure company funds. These characteristics make the usage of wallets more secure and trustworthy.

In every policy, it is saved in the form of JSON. It contains the operation (such as signing a transaction), a decision (accept or reject), and a list of requirements. The engine goes through rules one by one, accepting or blocking depending on matches.

As an example, a transaction could be permitted under 1 ETH, or under 2 ,ETH and the recipient is on a list of approved recipients. These checks are automatic and minimize the chances of human error and ensure asset protection.

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To sum up, the CDP Embedded Wallets offered by Coinbase introduce another step of control and security to crypto apps. Seedless design and programmable policies also enable developers to create more secure systems at a more fundamental level. Coinbase will enable the future of crypto to be the autonomous, smart, and secure default of apps.

 

 

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