Integrates Wallet functionality seamlessly within the application without requiring a separate wallet app, where users don't need to create a wallet directly or manage Seed Phrases
When users log in to the app (e.g., via email, social media, or other Web2 methods), the backend automatically generates a key pair that only the user can access, which can be used to sign Web3 transactions
Coinbase Debuts ‘Embedded’ Crypto Wallet for Developers—With Stablecoin Focus
The new product gives builders the infrastructure to seamlessly integrate wallets into their apps.
https://finance.yahoo.com/news/coinbase-debuts-embedded-crypto-wallet-225751516.html

Seonglae Cho