Embedded wallets are an important part of crypto infrastructure. They let users interact with digital assets inside applications without installing a separate wallet app or navigating seed phrases and browser extensions.
What are embedded wallets?
Embedded wallets are crypto wallets that an application generates automatically. When a user signs in with an email, phone number, or social login, the app generates and manages the wallet for them. The process looks and feels like a normal account signup.
These wallets allow applications to offer blockchain features without disrupting the user experience and support flexible design, smooth onboarding, and optional identity features when needed.
How embedded wallets work
Most embedded wallet systems follow a few core principles:
Advantages of embedded wallets
Embedded wallets can help simplify crypto onboarding by:
What this means for crypto adoption
Embedded wallets don't replace fully self-custodial tools. However, many new users may begin with an embedded wallet rather than a traditional one. As onboarding becomes simpler, wallet creation may start to feel automatic, and users can engage with crypto without needing specialized knowledge.