Non-custodial wallet

A non-custodial wallet lets a user authorize operations without delegating key custody to a provider. It may use one key, multiple signatures or smart-account logic. Effective control also depends on permissions, recovery, modules and restrictions on the managed assets.

Written by Pablo Gómez

Founder & CEO at Metlabs · Reviewed on October 11, 2026

Non-custodial describes control over authorizations. An application may prepare a transaction while the user signs with a device, local key or programmable account.

Not every model uses a seed phrase. Smart accounts may have social recovery, modules and multiple signers. It is necessary to identify who can change those rules.

Self-custody does not prevent token-freezing powers or guarantee interface and network availability. Existing spending approvals can also enable third-party transfers.

Sources

Ethereum: Security and scam prevention

Also known as

non-custodial wallet

Technology
Blockchain fundamentals

See the technologies in our stack

Infinite approvalAn infinite approval is an ERC-20 spending allowance granted for the maximum possible amount, so a spender contract can move an unlimited quantity of a token from the user's wallet until it is revoked; it amplifies the damage if the contract is or becomes malicious.
Multiparty computation (MPC)Multiparty computation (MPC) lets participants jointly compute a result without necessarily revealing their private inputs. Threshold signing can produce a signature using secret shares. It is a cryptographic technique rather than a custody category: control depends on who holds shares and authorizes operations.
MultisigA multisignature scheme requires several approvals to execute an operation, for example three of five signers. It may use scripts or smart contracts. It reduces dependence on one key, with security determined by threshold, signer independence and recovery or upgrade permissions.
Permit signature attackA permit-signature attack tricks a holder into signing an off-chain token-spending authorization. An attacker can submit the signature to obtain permission and transfer assets within its limits. The attack exploits granted authorization without necessarily obtaining the private key.
Private key compromiseA compromised key is a private key exposed to or controlled by an unauthorized person. It enables valid signatures using that key. Impact depends on account permissions; revoking token approvals alone does not remove access provided by a stolen key.
Rug pullA rug pull is an exit scam where a crypto project's team or insiders withdraw the value contributed by investors and abandon the project, leaving the token without liquidity or support, usually by draining the pool on a decentralized exchange.

As featured in

Non-custodial wallet

Sources

Also known as

Blog categories

Related terms