Coinbase is rapidly expanding its product offerings this month as some select users can now access DeFi and other DApps on Ethereum through the Coinbase app.

America's largest crypto exchange Coinbase has rolled out Web3 application functionality including a hot wallet and browser for a limited set of its mobile app users.

The app will allow select users to access decentralized applications (DApps) on the Ethereum network such as Uniswap and OpenSea.

The May 17 announcement by Coinbase's director of product management Rishi Dean said eligible users would be able to begin trading on nonfungible token (NFT) marketplaces, making swaps on decentralized exchanges (DEXs) and interacting with decentralized finance (DeFi) lending protocols to borrow and lend funds.

Along with the mobile browser that provides access to DApps, there is a hot wallet that customers can use to exchange funds. Unlike decentralized hot wallet apps such as MetaMask, the Coinbase hot wallet will have a co-custodial setup. This means that the private key for the wallet will be stored by the company and can be personally stored by the user.

The wallet and DApp functionality are operated with multi-party computation (MPC) technology, which secures the privacy of senders and receivers while ensuring the accuracy of a transaction.