Two years ago it was just a Little Direct Message button in the wallet. Two years later, Coinbase placed it on the middle axis of the new product: Chat is no longer a chat, but an entry point for behavior in all chains.Especially today, when the LLM continues to overlap and its capacity borders expand.
In the past, a number of projects have been high-profile on the SocialFi track, planning to match traditional social networks such as Standard X. Most products, however, either have a small thunderstorm or are difficult to break through to attract mainstream users.Small and beautiful decentrized social applications are often difficult to produce network effects that ultimately do not support ecological development.
Like Esther. @otherscan The Blackscan Chat function was introduced in 2022, allowing the Taispan address to share messages on the Estherscan website. It is, however, a sub-chain service, where information storage and transmission are centralized by Etherscan, where there are security and privacy risks, and where there is no real opening up.
Against this background, XML explores an unusual path. This bottom-down instant communication protocol, which focuses on the need to encrypt the original scene, has quickly won the favor of giants like Coinbase by providing secure and confidential information between wallet addresses.
In July 2025, its development team completed a $20 million B round of financing, valued at $300 million, and the company expects to issue a network valuation of $750 million in tokens
Such figures are particularly striking in the current low market environment. How can it be recognized by Coinbase and the capital market? How will it change Web3 socialization and the whole encrypted ecology?
First we need to know what the XMTP protocol is.
XML, known as Extensible Message Transport Protocol, is a decentrized, instant communication protocol for Web3 designed to serve as an infrastructure for inter-linkage communication. In short, XML wants to make it possible to send private mail directly between the block-chain wallet addresses, like using e-mail or instant messaging software, and to ensure security and privacy through end-to-end encryption of information.
This agreement can be seen as the rise of the communications layers of the Web3 world: A key link has been filled in the go-to social networking map. Its vision is to build an open communications network, similar to the Web2-era SMTP mail protocol, but tailored to Web3 users. It wants to break down the communication barriers between different applications and achieve real interoperability.
A more realistic example, in the traditional Internet,Wireless users are unable to send messages directly to paying treasure users because each operates its own communications network in isolation.However, in the XMTP network, a direct connection can be established between the parties by using either the block chain address or the associated decentrized identity (e.g. ENS) as the only identifier.
This means that regardless of the user ' s location, the use of XMTP would theoretically send the other side an encrypted message. Such a vision would undoubtedly be bold and, if realized, would move decentrized socialization away from information isolation and make user interaction as smooth as Web2 applications in different Dapps.
You may continue to ask how the XMTP technically managed to break the link to the island?
XMLP can be divided into three layers: a web layer with P2P nodes responsible for the receipt, storage and forwarding of message envelopes and is moving from official ownership towards the decentrization of open nodes registration and token incentives; a client-end layer generates identity keys through the SDK-based wallet signature, where end-to-end encryption is completed and the message is signed to verify source and integrity; and an application layer with wallets, social products and various types of DApp integrated XMTP to cross-application communication, to allow users to speak seamlessly in their original applications and to support easier location of the receiver using domain names such as ENS,The most typical example in the application layer is Coinbase Wallet, a global encryption user portal of nearly 108 million.
So how far does the XMTP go now?In one sentence, when its commercialization has been validated in Coinbase Wallet, the next step of the XMTP is to build on the go-live go-to-centre testing network.:: De-centreization of the main network (Phase 1) to introduce multi-operator nodes and information fees (covering infrastructure costs) and pave the way for subsequent and more open nodes access and incentives, as per the road map, in March 2026
XMTP, the progressive network effect and value capture in the AI era, has the greatest meaning in intent to trade.AI Agent needs to scale it up.—Negotiation—Order.—Authorization—The process of settlement, the least of which is to build another button.It's a cross-application, programmable, verifiable, default encrypted total.
XMLP is expanding the chat network to include the loads of agents + miniapps, and embedding payments with asset operations. When this inbox becomes the industry's default entry point, value capture naturally occurs in the scarce resources of transmission and anti-waste.
But that doesn't mean the future of XTMP. One of the biggest current challenges is data regulation from all countries.In particular, GDP R requires that users be given the right to delete information from the communications function.
However, this contradicts the vision of DEC-encrypted messages that XTMP wants to achieve. XMTP offers three potential solutions under compromise
XIP-45 (remove, still in the Draft phase)Not from the network, but from the application.
XIP-76 (deleteMessage for group talk about governance, i.e. administrators can delete)It defines a best-effort request for deletion and filters when searching or displaying
Network-level message additionThe official document says:Starting with XMLP Mainnet...the target retention period is about six months, i.e. after six months, the network is automatically deleted.
The above-mentioned solutions are still at the stage of the proposal, or even at the Dratf stage. But with the help of the giant Coinbase,Not only can XML accelerate progress towards the main network and the currency economy, paving the way for a completely decentralised communications network, but it can do more upstream than regulatory issues.
The rapid growth of XML may herald the next story of a large-scale use of encryption, not just a coin, but the free transmission of messages and trading intentions on every chain. We'll see if he can carry the burden.
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