Integrated Non-custodial wallets

For traditional investors, hiding blockchain complexity is essential for achieving massive adoption. Our platform offers an optional integrated wallet solution that simplifies this process and delivers an Apple Pay-like experience. This makes using wallets as seamless and intuitive as any modern and well-adopted digital banking experience..

Beyond user experience, integrated non-custodial wallets are essential to meet regulatory requirements. In many jurisdictions, particularly in the EU region, providing custodial wallets to users may require extensive licensing, such as Virtual Asset Service Provider (VASP) licenses. This is typically the case if the issuer controls private keys or manages cryptocurrencies or stablecoins for its users. To avoid these regulatory complexities, ensure compliance, and provide traditional clients with a seamless experience, it is crucial to provide integrated non-custodial wallets.

Here is how we ensure user control:

• Wallet Ownership: while the wallet is generated during the onboarding process, the token holder takes ownership and control of it upon accessing the Investor App. They do this by signing a transaction and claiming their wallet.
• Transaction Signing: only the token holder can sign transactions. Neither the issuers nor the T-REX Platform can sign transactions on their behalf or access their wallet.
• Token Recovery: even if an investor loses access to their wallet, they can still request a token recovery for any of their ERC-3643 tokens, eliminating the risk of losing their tokens.

Regulatory Considerations and User Control

In many jurisdictions, particularly in the EU region, providing custodial wallets to users may require extensive licensing, such as Virtual Asset Service Provider (VASP) licenses. This is typically the case if the issuer controls private keys or manages cryptocurrencies or stablecoins for its users. To avoid these regulatory complexities and ensure compliance, it is crucial to provide non-custodial wallets.

How Integrated Wallets work:

• Creating Wallets: During the onboarding process, our platform automatically generates a wallet for investors by connecting to trusted wallet providers via an API.
• Claim Wallets: When the investor connects to the Investor App, they can claim the wallet by using their chosen authentication method (e.g., biometric authentication, PIN, or WebAuthn-compatible options).
• Sign and Authorize: When an onchain operation is required, investors must verify their identity using their selected authentication method (e.g., Touch ID). Once verified, the operation will be signed and executed, provided all other conditions are met.

Current Limitations

While our integrated wallet solution offers numerous benefits, it is important to note that the management of signature policies is limited. For example, it is more complicated for token holders to sign transactions with their wallets on DeFi applications that don’t use the same wallet connection methods.