Stablecoins and digital wallets are reshaping global payments. In 2024, digital wallet spending accounted for $41 trillion globally. They offer faster, cheaper, always-on transactions that traditional systems can’t match. But building the digital wallet infrastructure to support them has been a persistent hurdle for companies.
This is where wallet-as-a-service (WaaS) comes in. WaaS allows businesses to launch reliable, compliance-forward digital wallets without having to develop or maintain the underlying blockchain infrastructure. It’s how companies can launch stablecoin payments, cross-border payouts, and on-chain financial products with the speed and reliability of modern application programming interfaces (APIs).
Below, we’ll outline how wallet-as-a-service works, the role it plays in stablecoin adoption, and what businesses gain (and need to consider) through its use.
What’s in this article?
- What is wallet-as-a-service (WaaS) and how does it work?
- What are the benefits of WaaS for businesses?
- Why is WaaS critical for stablecoin adoption?
- What challenges come with implementing WaaS?
- How are businesses using WaaS today?
What is wallet-as-a-service (WaaS) and how does it work?
WaaS lets businesses add secure, compliance-forward digital wallets to their products without the need to run any blockchain nodes or handle cryptography themselves.
Here’s how it works:
- APIs and SDKs manage blockchain connections: Developers use APIs or software development kits (SDKs) to create wallets, send or receive funds, and check balances. The provider’s backend runs the blockchain nodes, formats transactions correctly, and signs them before broadcasting to the network.
- Custody infrastructure keeps assets safe: The most sensitive part of any wallet is its private key, the digital credential that proves ownership. WaaS platforms protect the keys inside hardware security modules (HSMs) or other encrypted environments.
- Compliance is built into the workflow: WaaS providers often include tools for identity verification, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks, and transaction monitoring. These features help companies meet regulatory standards automatically.
- Custodial and non-custodial models support flexibility: Some businesses opt for custodial setups, where the provider manages keys and storage on behalf of users. Others choose non-custodial options, where customers keep control. There are WaaS products supporting both, so companies are free to pick the model that fits their product and regulatory context.
What are the benefits of WaaS for businesses?
There are many benefits associated with adopting WaaS in your business.
Here’s what you can seek to gain:
- Faster time to market and lower development cost: If you were to build a secure wallet system from scratch, it would take months, sometimes years, and involve a team of multi-disciplinary experts. With WaaS, businesses can integrate wallet features through APIs and launch in weeks.
- Security handled by specialists: Wallet security is hard to get right. WaaS providers manage key management through encrypted hardware and multi-signature protections, alongside rigorous audits and access controls. WaaS gets you top-tier security practices that would be expensive and time-consuming to build internally.
- Built-in compliance and risk management: Every company that moves money faces regulatory obligations such as KYC, AML, and reporting. Many WaaS platforms integrate these features directly, so they can automatically run user verification, screen transactions, and monitor for suspicious activity.
- Logical customer experience: WaaS can turn stablecoin and digital-asset payments into a payment that feels instant and familiar to users. Some platforms even offer customizable, white-label interfaces that businesses can brand as their own, which creates a consistent user journey from signup to checkout.
- Infrastructure that scales: WaaS providers maintain redundant systems and global networks of blockchain nodes to guarantee uptime and reliability. This means a business can expand quickly without having to hire DevOps teams or manage complex backend performance.
Why is WaaS critical for stablecoin adoption?
Stablecoins promise instant, low-cost global payments, but their adoption has been limited by the technical work required to set up wallets, secure keys, handle compliance, and connect to different blockchains. Stablecoin adoption has gained ground, however, making up around 7% of the global cryptocurrency market in 2025. WaaS makes stablecoin payments practical for businesses.
Here’s why WaaS has been necessary for more widespread stablecoin adoption.
It removes the complexities of using stablecoin
People don’t want to deal with seed phrases, blockchain addresses, or network fees. With WaaS platforms, users can send funds to an email or username instead of a cryptographic address, while the provider manages keys, fees, and blockchain transactions in the background.
It unifies a fragmented ecosystem
Stablecoins live across multiple blockchains, each with its own rules and tools. With most WaaS platforms, developers integrate once to reach multiple blockchains, so that businesses can support multiple stablecoins and networks.
It links crypto and traditional finance
Users can buy stablecoins with a card, top up their wallets from their bank, pay businesses in stablecoins, or cash out to a local currency. This straightforward flow between fiat and digital assets turns stablecoins into a practical mechanism for everyday business use.
What challenges come with implementing WaaS?
Wallet-as-a-service substantially simplifies things, but businesses still need to choose wisely where and how they integrate it.
Here are some of the challenges you should be aware of:
- Vendor dependence: Using a third-party provider means you have to trust them with uptime, security, and feature development. A service outage or roadmap shift can affect your users directly, so keep reliability and transparency in mind when you choose your vendor.
- Limited customization: WaaS platforms trade flexibility for simplicity. Some edge cases, such as custom transaction logic or niche blockchain support, might not be possible within the provider’s system.
- Compliance responsibility: WaaS can automate the checks, but not the accountability. Even with this kind of functionality, businesses must still meet regulatory requirements wherever they operate.
- Data and privacy considerations: Wallet integrations involve sensitive customer data. Companies should make sure providers meet strict security and data protection standards.
How are businesses using WaaS today?
Companies are using WaaS to experiment with stablecoin and digital-asset payments safely, quickly, and at scale.
Here are some examples of how businesses are using WaaS.
Fintechs and neobanks
Fintechs are adding crypto and stablecoin support through WaaS integrations. Neobanks in Latin America and Africa, for example, use wallet infrastructure to let customers hold dollar-pegged stablecoins such as USDC to protect against inflation.
Ecommerce and loyalty programs
Online retailers are testing WaaS-powered wallets that hold store credit, loyalty points, and even stablecoins. Customers can check out instantly or redeem digital value at speed without leaving the brand’s ecosystem. Compared to traditional cross-border card payments, businesses can see substantial savings on transaction fees by handling settlement on-chain.
Cross-border payments and global payroll
Businesses are using WaaS to pay global workforces and partners in stablecoins. In 2025, Stripe launched Stablecoin Financial Accounts, powered by Bridge, to allow businesses in more than 100 countries to send and receive stablecoins globally, using wallets for payouts and payments.
Gaming and digital assets
Game developers and non-fungible token (NFT) platforms are embedding wallets through WaaS so players can earn, store, or trade digital assets without the need to interact with a crypto exchange.
Bridge wallets enable businesses to create digital wallets and custody funds at scale, without worrying about management, transaction monitoring, and blockchain complexities. Learn more about Bridge wallets here.
Bridge is not a bank. The Prepaid Debit Visa Card is issued by Lead Bank and managed by Bridge Ventures, LLC. Fees may apply. See www.bridge.xyz/legal for more details.
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Bridge does not warrant or guarantee the accurateness, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation.
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