Coinbase has announced its plan to integrate the 1inch Swap API into its platform, aiming to enhance the speed and price quality of token swaps that do not require custodial services. According to the companies, this integration marks a significant milestone for 1inch in terms of acquiring a large client base in the United States. Following a decrease in spot volume and revenue during the second quarter, Coinbase, which activated a DEX layer in August offering access to “millions” of assets, aims to expand its DeFi sector. Simultaneously, the 1inch ecosystem reports reaching 25 million users and handling transactions worth approximately $500 million daily.
Integration Scope
The planned integration will allow direct access to DEXs within the Coinbase app, managing blockchain‑based swaps from a single screen. The 1inch Swap API collects liquidity from various exchanges, selecting the best route to minimize slippage and optimize transaction costs. According to Coinbase Trading President Scott Shapiro, “Together, we are bringing seamless access to DEXs within the Coinbase app,” emphasizing the importance of user experience. This process will happen within Coinbase’s global application infrastructure.
In August, 1inch introduced a native swap feature between Solana and EVM networks. This feature aids in more efficient liquidity transfer across multiple ecosystems. The integration operates technically through routing, splitting, and smart‑contract execution, ensuring wallet control remains with the user, thereby not shifting the custodial risk onto the exchange.
Strategic Positioning of the Initiative
This initiative aligns with Coinbase’s goal to strengthen its position in DeFi traffic alongside its CEX model. After experiencing a decline in spot volume during the second quarter, the company aims to expand its product range by directing its user base toward blockchain‑based transactions. 1inch co‑founder Sergej Kunz remarked that “non‑custodial swap products are the ideal solution for cryptocurrency and traditional financial actors transitioning to Blockchain.”
In the medium term, Coinbase plans to expand into areas like tokenized stocks and prediction markets as part of its vision to be “the exchange of everything.” The rationale behind the integration is to activate previously inaccessible long‑tail assets from within the app and diversify transaction revenues while retaining users.