Coinbase Wallet to Launch Click-to-Pay Solution to Achieve L2 Interoperability

Author: Brayden Lindrea, CoinTelegraph; Compiler: Tao Zhu, Golden Finance

Coinbase Wallet will soon launch a "Tap to Pay" encryption solution to compete with Cash App, Venmo, PayPal and other fast payment companies.

Jesse Pollack, head of Coinbase Wallet and founder of Base, revealed in an interview that Coinbase's non-custodial cryptocurrency wallet "is currently undergoing internal testing" and "will be fully launched soon."

“Tap-to-pay is going to be a huge market, especially for the long tail of merchants that currently use Cash App, Venmo or PayPal,” he said at the DevCon conference in Bangkok on November 13.

“We can give them a better, faster, more global tap-to-pay experience that will work in every country around the world. I think that’s pretty huge.”

The creator of Ethereum Layer 2 Base hopes to see 50 countries integrated into the Coinbase wallet by the end of 2025. Jesse Pollak sits down with Andrew Fenton at the DevCon conference on November 13. Source: Cointelegraph Pollak noted that part of the integration involves connecting user bank accounts to Coinbase wallets.

“We want people to move their savings, spending and investments onto the chain because it will provide better rates, better economic outcomes for merchants because it’s a faster, better, cheaper, more global economy.”

Pollak said bank account off-ramps would allow users to get paid in stablecoins like USD Coin or Tether, which can be easily converted into their currencies.

While the stablecoin circulation economy is still small, Pollak believes that “transformation” will happen quickly once merchants learn how to take advantage of cheaper payment methods.

Layer 2 interoperability issues coming

Meanwhile, Pollak said Base is looking to solve Ethereum’s Layer 2 interoperability problem “in the next six months.”

While there are multiple cross-chain solutions between the Ethereum mainnet and Ethereum Layer 2, Base and other Ethereum Layer 2s remain fragmented.

But Pollak said the problem is being “quickly addressed” via two key specifications — ERC-7683, which introduces an interoperability standard for cross-chain transfers, and RIP-7755, which will enable trustless execution between chains.

“They basically work together so that you can have one wallet that can execute on every L2,” Pollak said. “It’s not going to be all these fragmented L2s anymore. Instead, it’s going to be your wallet that works everywhere.”

“I think we’ll have that done in the next six months.”

A successful solution would allow token transfers between Base and other ethereum layer 2s, such as Arbitrum One, OP Mainnet and Blast, unlocking more use cases in the ecosystem and securing more than $42 billion in value, according to L2BEAT data.

From then on, Pollak said, Base will expand to all other Layer 1s so that users can store assets on Base and trade them anywhere.