Nasdaq-listed cryptocurrency exchange Coinbase has announced the launch of a user-friendly smart cryptocurrency wallet, offering users greater convenience through a smoother onboarding experience, gasless transactions, and doing away with recovery phrases.

The company behind PayPal’s PYUSD stablecoin Paxos, has introduced a similar cryptocurrency that pays a roughly 5% yield to its holders called Lift dollar (USDL), which is pegged to the value of the U.S. dollar and issued by an affiliate entity based in Abu Dhabi.

Japanese cryptocurrency exchange DMM Bitcoin has outlined plans to recover from a major security breach that resulted in the theft of over $300 million in Bitcoin last week and reimburse affected users.

Top stories in the Crypto Roundup today:

• Coinbase Unveils User-Friendly Smart Crypto Wallet
• Paxos Launches Yield-Bearing Stablecoin USDL
• Japanese Exchange DMM Bitcoin Details $352M Recovery Plan Post-Hack
• Trading Volumes on Centralised Exchanges Drop After Seven Months

Coinbase Unveils User-Friendly Smart Crypto Wallet

Nasdaq-listed cryptocurrency exchange Coinbase has announced the launch of a user-friendly smart cryptocurrency wallet, offering users greater convenience through a smoother onboarding experience, gasless transactions, and doing away with recovery phrases.

Coinbase’s smart wallet will let users create a new wallet and onboard onto a blockchain without downloading a new application or having to receive a new recovery phrase. The smart wallet will, instead, integrate with popular apps and use familiar authentication methods including Face ID, fingerprint recognition, or YubiKey.

This self-custodial wallet allows users to make payments directly from their Coinbase account or their Coinbase Wallet balance and developers can choose to waive gas fees by sponsoring transactions through a paymaster function.

The smart wallet will initially support Ethereum, Base, Optimism, Arbitrum, Polygon, Avalanche, BNB Chain, and Zora networks with plans to add support for more later on, and will see a companion web application be the user’s primary hub for it.

Existing Coinbase users can expect access to the new wallet "in the coming months" after the migration tools are finalized.

Smart wallets aren’t new, it’s worth noting, as Loopring and Argent have pioneered these in 2020. The technology is gaining traction, with Ethereum co-founder Vitalik Buterin championing the concept of "social recovery" features, offering enhanced security without the need for recovery phrases.

Paxos Launches Yield-Bearing Stablecoin USDL

The company behind PayPal’s PYUSD stablecoin Paxos, has introduced a similar cryptocurrency that pays a roughly 5% yield to its holders called Lift dollar (USDL), which is pegged to the value of the U.S. dollar and issued by an affiliate entity based in Abu Dhabi.

That affiliate entity, Paxos International, is overseen by the Abu Dhabi Global Market's Financial Services Regulatory Authority, with the stablecoin being issued from the region as, according to its CEO Charles Cascarilla, it’s unclear how USDL “would be treated under US law.”

In the US, Cascarilla said, a stablecoin offering its holder yield could potentially be seen as a security by the country’s regulators. Paxos last year halted offering a stablecoin linked to Binance, BUSD, over orders from regulators.

Similar to other stablecoins, USDL is backed by a basket of US government securities to maintain its dollar peg. Paxos has partnered with Argentinian crypto firms to introduce USDL in that country, where rampant inflation has fueled cryptocurrency adoption.

While the Ethereum-based USDL is technically "permissionless," meaning anyone can use it, Paxos plans to restrict access in regions with strict regulations, including the US, UK, and Japan.

Japanese Exchange DMM Bitcoin Details $352M Recovery Plan Post-Hack

Japanese cryptocurrency exchange DMM Bitcoin has outlined plans to recover from a major security breach that resulted in the theft of over $300 million in Bitcoin last week and reimburse affected users.

According to the exchange, hackers made off with 4,502.9 bitcoin, valued at roughly $306 million at the time of the incident, and the exchange has pledged to fully compensate users for their stolen funds by procuring an equivalent amount of BTC.

The recovery plan, according to a translation of a statement made on the trading platform’s website, hinges on financial support from DMM Group, the exchange's parent company that operates in e-commerce and internet services.

The statement details DMM Bitcoin has already secured 5 billion yen ($32 million) through borrowing, with an additional capital injection of 48 billion yen ($307.6 million) being planned for June 7, followed by subordinated borrowing of 2 billion yen ($12.8 million) on June 10 to bring the total recovery fund to $352.4 million.

DMM Bitcoin emphasized that they will "proceed with the procurement of the equivalent amount of bitcoin while taking care not to impact the market,” and added that it “deeply apologizes for the great inconvenience and concern this situation has caused our customers.”

Trading Volumes on Centralised Exchanges Drop After Seven Months

Centralized cryptocurrency exchange trading volumes in May, dropping over 20% to $5.27 trillion as major digital asset prices remained stagnant after the Bitcoin halving in March.

While spot trading volumes fell 21.6% to $1.57 trillion in May, derivatives volumes declined 19.4% to $3.69 trillion. Despite the overall decline, derivatives market dominance reached its highest point since December 2023.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Exchange Review report.

State of the Crypto by Top Tier Exchange Volume

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