A complete guide to Wallet as a Service
Web3 adoption is accelerating, and almost every modern product eventually reaches the same point: users need a crypto wallet. Not just any wallet, but one that is safe, scalable, user friendly, and compliant. Building such infrastructure from scratch is expensive, time consuming, and requires deep expertise in cryptography, MPC, blockchain protocols, and security.
This is why a new category of infrastructure has emerged: WaaS, Wallet as a Service.
WaaS is a model where a provider delivers a full wallet infrastructure that companies can integrate through API or SDK. The business does not need to build its own cryptographic system. The wallet becomes a modular component that can be added to any app.
In many ways WaaS is doing for Web3 what cloud computing did for servers and what Stripe did for online payments.
What WaaS includes in practice
Modern WaaS platforms go far beyond basic wallet creation. They provide a complete technical backbone:
1. Key management
This is the most complex and important part of any wallet. WaaS providers offer key management solutions such as:
• MPC where the private key is split into parts that work together
• HSM based protection
• distributed key storage
• seedless architectures
The company does not touch or store private keys, which reduces technical and regulatory exposure.
2. Transaction signing
The system signs transactions on behalf of the user and product logic.
This allows deposits, withdrawals, USDT payments, swaps, NFT transfers, smart contract calls, and more without building cryptography in house.
3. Multichain support
Ethereum, Solana, Bitcoin, Tron, Polygon, BNB Chain, Avalanche, Sui and others.
Multichain support is becoming a standard requirement for any serious platform.
4. User onboarding
WaaS can include authentication tools, email or phone login flows, embedded UI components, or full seedless onboarding.
5. Security layers
Audits, transaction monitoring, abnormal behavior detection, automated updates, and risk scoring.
6. Payment capabilities
Many WaaS systems now power Web3 payments by offering:
• stablecoin transfers
• onchain invoicing
• internal balance transfers
• swap functionality
• white label checkout modules
The result is a complete Web3 payment infrastructure.
Why WaaS became critical for the market
1. Faster development
Building a secure wallet from zero can take a year or more. WaaS reduces this to weeks.
2. Lower costs
Maintaining cryptography, servers, compliance, risk engines, and blockchain integrations is expensive. WaaS uses a pay as you go model.
3. Regulatory alignment
New frameworks like MiCA, PSD3, and the upcoming GENIUS Act in the United States push companies toward clear key management and transparent transaction flows.
WaaS providers help clients align with these requirements without building heavy infrastructure internally.
4. Stronger security
Most Web3 hacks happen due to poor key handling. WaaS minimizes this risk through hardened key management and isolation.
5. Growing demand for stablecoins
More than half of all crypto transfers today involve USDT or USDC.
Businesses want to integrate stablecoin payments directly inside their apps, and WaaS makes this possible.
Who uses WaaS
Fintech apps
They want to offer transfers or onchain balances without turning into full crypto companies.
Gaming projects
Games with NFT assets or tokens need smooth wallets, but players are not willing to store seed phrases.
Marketplaces
They require stablecoin payments and secure onchain settlement.
Next generation wallets and exchanges
Many new wallet products rely on WaaS instead of building infrastructure by themselves.
Banks and financial institutions
In 2024 and 2026 several European and Asian banks began experimenting with tokenized deposits, euro stablecoins, and digital bonds.
Banks need reliable non custodial wallet architecture to operate these assets.
Custodial vs Non custodial WaaS
Custodial WaaS
The provider stores the private keys.
Pros include smooth UX and simple user flows.
Cons include strict regulation, licensing, and higher custody risk.
Non custodial WaaS
The provider does not control user funds.
MPC and distributed key structures allow users to own their assets while businesses avoid custody responsibilities.
Benefits include:
• no custody risk
• easier legal compliance
• higher user trust
• faster scaling
• safer architecture than traditional seed phrases
This is why the market is shifting strongly toward non custodial WaaS.
Key trends in WaaS for 2026
1. Seedless onboarding
Users log in with email or phone and the wallet is created automatically through MPC.
This dramatically improves adoption.
2. Stablecoin integration in mainstream apps
WaaS becomes the link between traditional fintech and Web3 money.
3. Institutional adoption
Banks, PSPs, and corporate financial systems test tokenization and onchain payments.
4. Embedded compliance
KYC, KYT, AML checks, and risk engines are becoming part of the API.
5. From wallets to full wallet infrastructure layers
WaaS is evolving from tools to complete backend platforms that power entire ecosystems.
Conclusion
WaaS is becoming the foundation of the new digital economy.
It allows companies to integrate crypto functionality without technical risk, accelerates product development, and opens access to stablecoins and tokenized assets.
Businesses gain speed and security.
Users get a simple and safe wallet.
The market gains standards that push Web3 forward.
