Coinbase has announced plans to discontinue its on-exchange Web3 Wallet by June 2025, urging users to transition to the updated Coinbase Wallet or mobile app. This move is part of Coinbase's strategy to enhance its custody offerings and developer tools, potentially influencing trading behaviors and institutional adoption. The discontinuation may affect user access to assets, prompting a shift toward self-custody solutions. Similar past actions, such as the 2022 DeFi wallet retirement, have led to asset migration challenges, highlighting the importance of timely user adaptation to new platforms.