Embedded wallets (non-custodial / MPC)
An embedded wallet is a crypto wallet built into an app, created when you sign in with email, social login or a passkey, instead of connecting a separate wallet such as Phantom. Whether it is non-custodial depends on who can authorise signatures, and that depends on how the app configured it.
How embedded wallets work
Turnkey's docs describe an embedded wallet as one built directly into an application, where the app handles wallet creation, authentication and signing behind the scenes. Users authenticate with email, phone, biometrics, social logins or passkeys, and private keys stay inside secure enclaves, with only signatures returned.
Privy's docs describe a similar design. Keys are split with Shamir's secret sharing into an enclave share, protected by a trusted execution environment, and an auth share, stored encrypted by Privy and released only with valid authentication. Both are required. The key is reconstructed only temporarily inside the enclave to sign, under policies attached to the wallet. Privy describes these as non-custodial wallets.
Custody is a configuration choice
Turnkey's docs say custody depends on who holds the credentials that can authorise the enclave to sign. In a non-custodial setup, only the user's authenticator can approve. In a custodial setup, the app holds signing authority through an API key and can transact without per-action approval, which the docs note is common for automated trading. In a hybrid setup, both hold credentials, and policies decide what each can do.
Why trading apps use them
Embedded wallets remove seed phrases and browser extensions, which makes one-click trading possible. The same convenience means the app's login is effectively your wallet's security. Whoever can sign in as you, or whatever the app is allowed to sign by policy, can move funds.
What to check before depositing
Find out which provider and custody model the app uses, and whether you can export your private key. Turnkey's docs list key import and export as a supported feature. Secure your login with a passkey or strong two-factor authentication. Keep only trading funds in an app wallet, and confirm you could still reach your assets if the app shut down.
Where this shows up
- Axiom — Desktop Solana and BNB Chain memecoin traders who want spot, Hyperliquid perps and wallet tracking in one web terminal.
- BullX — Existing BullX users who need to withdraw funds; trading is suspended.
- Photon — Solana traders already using Photon; verify current fees on the site before trading.
- fomo — Mobile-first traders who want gasless multichain memecoin swaps with a social feed of what top traders are buying.
- Phantom — Solana-first users who want one self-custodial app for swaps, cross-chain swaps, Hyperliquid perps and predictions.
- Solflare — Solana-only users who want staking, swaps and Solana-native perps in one self-custodial wallet.
Sources
Last checked . Fees and terms change often; the venue's own page wins if it disagrees with ours.
- Embedded wallets overview (Turnkey docs) — checked 2026-10-16
- Wallets overview (Privy docs) — checked 2026-10-16
- Security architecture (Privy docs) — checked 2026-10-16