In a significant development for decentralized finance, 1inch, a leading DeFi aggregator, has announced the integration of its Swap API into the Coinbase app, which serves a massive user base of around 120 million each month. This partnership, revealed on Wednesday, allows Coinbase users to execute non-custodial token swaps directly from their own wallets via the platform’s decentralized exchange (DEX) feature.
This collaboration represents 1inch’s largest engagement with a U.S. client to date, illustrating the growing importance of integrating DeFi functionalities into mainstream platforms. With a user base of 25 million and a daily trading volume exceeding $500 million, 1inch is positioned well within the rapidly evolving crypto landscape.
The integration is a clear reflection of the increasing mainstream acceptance of DeFi, as traditional platforms look to enhance their services and retain users amid fierce competition. According to data from DeFiLlama, the total value locked (TVL) in DeFi has surged significantly this year, reaching $163 billion, signaling robust growth in the decentralized sector.
This initiative aligns with a broader trend of cryptocurrency exchanges transforming into “universal exchanges” (UEXs), intertwining diverse offerings beyond standard trading functions. These platforms are increasingly providing access to on-chain token trading and tokenized real-world assets. In a recent report, The Defiant highlighted that this trend has been fueled by recent pro-crypto regulations within the United States.
Sergej Kunz, co-founder of 1inch, commented on the collaboration, emphasizing their ambition to reshape the financial landscape. “We are no longer just looking to unify DeFi; our vision extends to all financial markets. 1inch’s non-custodial swap products are the ideal solution for centralized players across both crypto and traditional finance as they work to transition assets on-chain seamlessly and securely. It’s great to see Coinbase leading the way in this shift; others will surely follow,” he stated.
The integration comes at a time when U.S. crypto and fintech companies, including Coinbase, are striving to create so-called “super apps.” This concept refers to platforms that merge a variety of financial and communication services into a single, streamlined interface – a model that has gained traction in several Asian markets.
In July, Coinbase unveiled the rebranding of its non-custodial wallet to the Base app, indicating plans to consolidate trading, payment solutions, social features, messaging, and mini-apps into one comprehensive platform. Such initiatives are part of an ongoing vision set forth by CEO Brian Armstrong, who has expressed aspirations for the exchange to evolve into a “super app.”
On September 30, Scott Shapiro, Coinbase’s head of trading, reinforced the company’s ambition to become an “everything exchange.” He articulated that this evolution aims to “empower traders to explore new opportunities, whether that’s through DEX trading and perpetual futures, or through prediction markets and tokenized equities.”
As the lines between traditional finance and decentralized finance continue to blur, the partnership between 1inch and Coinbase reflects a pivotal moment in the integration of on-chain trading capabilities into user-friendly platforms. This move not only enhances the user experience for Coinbase’s vast audience but also signals the increasing maturity and acceptance of DeFi within financial markets.
