Coinbase unveiled a developer-focused wallet that automatically activates 4.1% rewards on USDC balances.

Called Coinbase Developer Platform (CDP) Embedded Wallets, the product is part of and is aimed at giving builders the same secure, scalable infrastructure that powers millions of Coinbase accounts, according to an August 5 announcement.

CDP Embedded Wallets support Ethereum Virtual Machine (EVM)-compatible chains and Solana, pairing “web2-style” logins via email, SMS, and OAuth with self-custody. 

Keys are secured in trusted execution environments (TEEs), while developers can define policies and plug into a unified toolkit for onramps, swaps, transfers, balances, staking, and rewards. 

Coinbase says developers can create brandable wallets in under 200ms, then monetize idle balances via the native 4.1% USDC rewards.

Early use cases include remittances, payment links, DeFi marketplaces, B2B payroll, creator payouts, and gaming with on-chain assets and free USDC sends on Base.

As part of the beta, Coinbase Onramp customers can use Embedded Wallets at no cost through September 30.

US stablecoin clarity propels movement

Coinbase ties the launch to fresh US policy momentum on stablecoins. The GENIUS Act cleared the House on July 17. It was signed into law on July 18, establishing the first federal framework for dollar-backed stablecoins and signaling regulatory support for “faster, cheaper” payments. 

The House also passed the CLARITY Act the same day, sending it to the Senate. The CLARITY Act would create a regulatory regime for digital assets other than stablecoins and give the CFTC sole authority over transactions in digital commodities.

With that backdrop, Coinbase says developers are moving quickly to build on stablecoin-native rails, and the wallet’s auto-rewarding USDC feature is positioned to ride that shift.

Coinbase frames CDP Embedded Wallets as a way to cut integration overhead, replacing stitched-together APIs with a single stack while keeping users in a non-custodial flow.

For builders, the proposition offers a faster path to market, complete with familiar logins, end-to-end onboarding, and built-in yield on idle USDC.

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Ethena Labs reached $290.2 million in total protocol revenue on July 9, trailing only Tether, Circle, and Sky among stablecoin issuers. 

Token Terminal data show that the stablecoin issuer reached $100 million in cumulative revenue 251 days after its launch, making it the second-fastest protocol to cross this threshold.

Daily fees averaged $3.1 million during the past month as traders continued to mint and hedge the synthetic-dollar token USDe. Ethena’s path to nine-figure revenue took 251 days, faster than Uniswap’s 980-day sprint in 2020 but slower than memecoin launchpad Pump.fun, which hit the mark in 217 days late last year. 

Core income is generated by carrying long spot and short perpetual futures positions across multiple exchanges, a delta-neutral strategy that converts funding-rate spreads into protocol earnings credited to stakers of the yield token sUSDe.

Back-end Treasury data shows that 94% of backing assets remain on centralized venues, where Ethena’s automated execution system balances collateral and hedges in real time. The remaining collateral is held in liquid-staking tokens to capture staking rewards while maintaining a neutral net exposure. 

The protocol redirects 20% of gross fees to buy ENA on the open market, a mechanism that has burned 58 million tokens since February, according to on-chain trackers.

SEC dialogue on payment stablecoin status

Ethena’s General Counsel, Zach Rosenberg, and attorneys from Morrison Cohen met with the US Securities and Exchange Commission’s (SEC) Crypto Task Force on July 1 to request clarity on “synthetic dollars,” such as USDe. 

A meeting memorandum released by the SEC shows that the team argued that USDe functions as a payment instrument rather than a security because holders do not rely on the issuer’s efforts for profit and because redemption rights track underlying reserves, not the issuer’s balance-sheet performance. 

The submission cites two pending bills, the GENIUS Act and the STABLE Act, that would carve out a federal licensing lane for payment stablecoin issuers. Ethena told staff that USDe falls outside both drafts because the token can fluctuate slightly around $1 and carries no legal promise of par redemption, leaving it in regulatory limbo.

Company representatives urged the commission to treat synthetic dollars as a separate class and to coordinate with bank regulators if Congress finalizes a payment stablecoin framework. 

Ethena remains barred from US retail distribution pending formal guidance, so new dollar inflows primarily come from offshore funds and market-making desks that hedge their exposure on centralized exchanges. 

The protocol’s revenue pace slowed in May when average perpetual funding spreads compressed below an 8% annualized rate. Still, fee intake rebounded to $3.8 million per day in early July as renewed long-bias returned the basis to double-digit territory.

Ethena’s request for formal SEC feedback remains under review, according to the meeting log.

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Ahead of an important week for digital assets legislation, Stand With Crypto (SWC) and over 60 other industry firms sent a letter urging House lawmakers to champion clear regulations for the industry and unlock its potential.

Industry Coalition Pushes For CLARITY Act Approval

On Monday, advocacy group Stand With Crypto, alongside 65 other firms and groups, sent a letter to the US House of Representatives urging lawmakers to support the bipartisan Digital Asset Market Clarity (CLARITY) Act of 2025 as the US approaches a “pivotal crossroad.”

Excerpt from the letter to members of the House of Representatives. Source: SWC

The industry coalition argued that digital assets continue to reshape the global economy, despite some efforts to “politicize crypto legislation,” adding that the US risks falling behind unless pro-crypto policies that fully embrace blockchain technology are quickly adopted.

There are already signs of U.S. crypto leadership slipping. We cannot afford to let inaction and uncertainty jeopardize our ability to secure Americaʼs economic future. Above all else the U.S. crypto industry needs market structure — which ensures there are clear rules of the road and provides the regulatory clarity that developers, users, and advocates need to continue innovating.

The letter explains that digital assets are “providing a foundation for a more inclusive, transparent, and secure digital economy,” and “opening doors for economic opportunity, innovation, and financial empowerment on a scale weʼve never seen before.”

As such, crypto developers require clear guidance and safeguards to continue building blockchain systems, with standards for transparency, security, and accountability, and where users can control their digital assets.

The lack of standardized rules has hindered institutional adoption, innovation, and pushed talent and businesses to more industry-friendly jurisdictions outside the US. Nonetheless, passing the long-awaited market structure bill would address these issues, the crypto coalition argues.

House Lawmakers Prepare For ‘Crypto Week’

Notably, SWC’s letter comes ahead of the highly anticipated “Crypto Week,” which will see the review of three key legislations during the week of July 14 to 18, including the GENIUS Act and CLARITY Act.

As reported by Bitcoinist, House Financial Services Committee Chair French Hill, House Agriculture Committee Chair Glenn Thompson, and Speaker Mike Johnson announced the upcoming discussion on rules on stablecoins, market structure, and central bank digital currency as part of Congress’s efforts to make America the crypto capital of the world.

Chairman Thompson affirmed that “it will soon be time for the House to deliver for the American people and send CLARITY to the Senate. I thank House Leadership for recognizing the urgent need for CLARITY to cement American leadership in the digital asset space.”

The bipartisan bill was introduced on May 29 by Chairman Hill, aiming to establish a regulatory framework for crypto assets and provide the long-awaited clarity and protection for the industry.

If passed, the legislation will assign clear roles and responsibilities to the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), which would “not only enable and empower developers to innovate, but also protect consumers through choice, foster greater participation in the blockchain economy, and strengthen national security.”

Nearly a month ago, the bill passed its two committee markups, but it still needs to pass the full House vote and the Senate before heading to President Donald Trump’s desk.

 However, its path to approval has been uncertain, as House Democrats have heavily criticized the bill, and some lawmakers have pushed to merge it with the GENIUS Act, making next week’s debate a pivotal moment for the legislation.

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