What Is a Hosted Wallet?
A hosted wallet is a secure digital wallet solution where the underlying security and transaction signing are managed by an institutional-grade infrastructure provider, rather than being stored directly on our company's servers or your personal device. Unlike traditional wallets that store a single "private key" (which creates a single point of failure), our hosted wallet utilizes MPC (Multi-Party Computation) technology. This means your asset security relies on a decentralized network of cryptographic checks, ensuring that neither our company nor any single individual has direct access to your private keys.
Understanding the Full Scope of a Hosted Wallet
Our hosted wallet combines the ease of use of a banking app with the security of an institutional vault. Because the custody infrastructure is decoupled from our user interface:
Institutional Security: Your assets are secured by our institutional infrastructure provider's battle-tested infrastructure, which protects thousands of institutions worldwide.
Access Recovery: Unlike personal wallets where losing a seed phrase means losing funds forever, our partnership with our institutional infrastructure provider allows for secure account recovery. If you lose your login credentials, we can verify your identity and restore access to your wallet without compromising the asset's security.
Difference Between Personal Wallets and Hosted Wallets
It is crucial to understand who holds the "keys" to your assets:
Personal Wallets: You are solely responsible for your private keys. If your device is hacked or you lose your key, your funds are gone. The software provider has no power to help you.
Our Hosted Wallet: This is a custody-as-a-service model.
- No Single Private Key: We do not simply "know" or "store" your private key. Instead, our institutional infrastructure provider generates and secures key shares using MPC technology.
- Separation of Concerns: Our company provides the portal for you to initiate transactions, but the actual execution and security validation occur within the isolated institutional infrastructure environment. This ensures that your assets are protected by our institutional infrastructure provider's rigorous security protocols, independent of our company's internal IT infrastructure.