USDC Issuer Circle Launches Programmable Web3 Wallet

Circle, the company behind the USDC stablecoin, has launched a programmable Wallet-as-a-Service platform in production beta.

The feature enables developers to embed wallets into their dApps and customize wallet parameters, including features tailored for NFT or digital asset transactions.

The wallet supports Multiparty Computation (MPC), allowing users to split the private key for a wallet into fragments controlled by multiple entities, and requires that all parties sign off on transactions.

“Circle provides a Web3 user experience, using a PIN code mechanism and a set of security questions for account recovery, abstracting the complexity of seed phrases from your users,” tweeted Jeremy Allaire, co-founder and CEO of Circle.

MPC Controversy

Wallet providers have been turning to MPC to offer account recovery services in a bid to make crypto more accessible to the masses. However, such features often require security trade-offs by outsourcing private key management.

Ledger, a leading hardware wallet provider, faced widespread backlash in May after proposing an opt-in account recovery feature that combined MPC with KYC verification. Ledger CEO Pascal Gauthier defended the feature, asserting that such additions will help pave the way for mainstream web3 adoption.

“I’m sorry, but the piece of paper is a thing of the past,” Gauthier said at the time.

‘Developer-Controlled’ Wallets

Developers can use Circle’s Programmable Wallet API to deploy “user-controlled” wallets within their dApps, with “developer-controlled” accounts also expected to launch soon.

“Developer-controlled wallets allow you to create and manage asset flows on behalf of your users, providing them with easy-to-use access to Web3 functionality,” Circle said. “Your user no longer has to get used to the complexities of the Web3 ecosystem or worry about losing their assets because of a lost seed phrase in order to access the speed of the blockchain.”

However, developer-controlled accounts require users to trust that dApp developers won’t act maliciously.

Circle’s programmable wallet also offers software development kits for Android and iOS.