Modular Wallets: A latest enhancement to Programmable Wallets

Today we’re introducing Modular Wallets, a new variant of Programmable Wallets that gives developers greater flexibility with their smart contract accounts. As its name implies, Modular Wallets offers highly customizable infrastructure that lets developers build wallet solutions in a composable, à la carte fashion. Unlike User-Controlled and Developer-Controlled Wallets—which provide end-to-end services covering blockchain node management, account creation, key management, and more—Modular Wallets lets developers select only the components they need.

Interoperable infrastructure based on open standards

Smart contract account (SCA) implementations are fragmented across different providers, leading to inconsistent user experiences, interoperability challenges, and vendor lock-in. To address these issues, Circle partnered with industry leaders—including Alchemy, Trust Wallet, Quantstamp, and the Ethereum Foundation—to co-author ERC-6900, a modular framework for smart contract accounts.

Modular Wallets is our latest innovation built on ERC-6900, enabling developers to create and customize wallets based on an open standard. In the blockchain industry, openness and interoperability are critical. With Modular Wallets, developers have the freedom to design wallet experiences tailored to their needs, choosing only the components that best fit their use case.

Key features of Modular Wallets

Available for Polygon PoS and Arbitrum, Modular Wallets provides:

• SDK-first experience: Access a developer-friendly SDK for web and native mobile (iOS and Android).
• Flexible key management: Use Circle-generated EOA keys, passkeys, or third-party custody solutions.
• Indexing service: Track all inbound and outbound transfers and wallet balances in real time without querying blockchains manually. View data in the Circle Developer console or retrieve it via API.
• Transaction screening: Automatically screen all incoming and outgoing transactions against the OFAC Sanctions List, flagging any that match listed entities or individuals.
• Gas abstraction: Seamlessly integrate with Circle Paymaster and Gas Station for an improved user experience, or use any third-party gas abstraction solution of your choice.

New functionality unlocked: Passkeys

Modular Wallets enables developers to set up non-custodial, passkey-enabled wallets. Passkeys represent a modern approach to authentication, aiming to enhance security while simplifying the user experience.

Unlike traditional passwords, which can be complex and easily forgotten, passkeys utilize cryptographic keys stored directly on a user's device. This method allows for seamless and secure logins without the need to remember or input lengthy password strings.

Closer look at our product roadmap

Modular Wallets introduces innovative ways to manage stablecoins like USDC, digital assets, and interact seamlessly with DeFi apps. Passkey support is the first feature enabled by Modular Wallets. We plan to grow support for ERC-6900 modules in the coming months, allowing developers to extend wallet functionality and address key use cases:

• Session Keys: Automate transactions and enable features like subscriptions, pull payments, and spending limits in your app. This facilitates subscription billings, allowing smart contract accounts to automate recurring payment processing for products or services.
• Multi-Owner: Add multiple signers to wallets, using either EOA keys or passkeys. This enables integration with multiple signers simultaneously and facilitates account recovery if one signer is lost.
• Weighted Multi-Sig: Assign different weights to signers. Transactions proceed only when the collective weight of approved signatures meets a predetermined threshold. This enhances treasury management security, ensuring funds move only when authorized by multiple trusted parties.

In addition to the current support for Arbitrum and Polygon PoS, we plan to expand chain compatibility to include Base, OP Mainnet, and more EVM-compatible blockchains.

Programmable Wallets offerings comparison

With the addition of Modular Wallets, Programmable Wallets provides a full spectrum of wallet infrastructure solutions for developers to build upon based on their use cases.

Modular Wallets:

• Flexible key management options. Keys can be controlled by users, developers, or 3rd-party custody solutions. Soon developers can set up Multi-Owner and Weighted Multi-Sig to add an additional layer of security.*
• Best for developers who need a fully customizable wallet building experience.
• Use case: Treasury management

Developer-Controlled Wallets:

• Developers control the MPC key.
• Best for developers who build high throughput server-side wallets and need to take action programmatically.
• Use case: AI agents, Trading

User-Controlled Wallets:

• Users control the MPC key.
• Best for developers who want to embed wallets into their apps and allow end users to sign transactions.
• Use case: Collect NFTs & tokens

*Note: Multi-Owner and Weighted Multi-Sig support is coming soon

Start building now

We're excited to see what innovative solutions developers will create with Modular Wallets. This new infrastructure opens up a world of possibilities for customized, secure, and user-friendly onchain applications.

Ready to get started?

• Explore docs: Visit our quickstart guide to learn more about how to set up wallets and send gasless transactions.
• Try our SDK: Install the Modular Wallets SDK and start building your wallets.
• Join our community: Connect with other developers, share ideas, and get support in our Discord channel.
• Share your feedback: We're constantly improving our products. Let us know your thoughts and suggestions as you build with Modular Wallets.

Don’t have an account yet? It only takes a few minutes to create one.

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Don't forget to apply for the Circle Credits Program to receive up to 1,000 credits to cover your mainnet gas fees!

Special thanks to Vivienne Lee, Andrew Klein, Daniel Lim, and Alex Wagner for their review.