What are Embedded Wallets?

For many, navigating the complexities of blockchain technology can be daunting, particularly when it comes to managing digital wallets. Signing in to web3 wallets is easy for a crypto-native, but nerve-wracking for anyone else. The flow simply doesn’t align with the process most users are used to.

That’s the whole idea behind embedded wallets: by integrating wallet functionality directly into the app, embedded wallets eliminate the need for third-party solutions. This in-app functionality improves the UX for new and experienced users alike.

But how exactly? In this article, we’ll explore what embedded wallets are, how they work, and why they are so important for building web3 apps in 2025.

What are embedded wallets?

Embedded wallets are web3 wallets that allow users to take action without leaving the app.

Essentially, they are designed to onboard users effortlessly, even if they have little to no prior web3 experience. With a choice of authentication methods, like email or social media accounts, and the ability to customize the user experience, embedded wallets are a must for any scaling web3 app.

How do embedded wallets work?

Embedded wallets are integrated directly into decentralized applications (dApps), streamlining the user experience.

Let us take a brief look at a step-by-step breakdown of how embedded wallets work:

Private key: Upon creating an embedded wallet, a private key is generated on the user's device.

App integration: Embedded wallets are integrated into decentralized applications, removing the need for external wallet apps.

Benefits of using Embedded Wallets

Embedded wallets are setting the stage for a more inclusive and user-friendly decentralized web. Here’s how:

Simplified Onboarding

Users can log in using familiar methods, such as email and social accounts, removing the typical complexities of blockchain interactions.

Immersive User Experience

Embedded wallets streamline the user experience in blockchain apps since they offer branded customizable experiences. Want to accept in-game tokens? You can. Want to create a branded, aligned aesthetic for your wallet? You can do that too!

thirdweb’s Embedded Wallet Solutions

With thirdweb, it’s easy to implement embedded wallets built specifically for your app. thirdweb In-app wallets offer an embedded wallet solution that is reliable and powerful for any kind of app and any kind of audience. Plus, you can also activate in-app wallets across multiple apps, meaning they are also suitable for entire gaming or app ecosystems.

Here are some of the benefits 👇

• Modular, Composable & Customizable: No vendor lockin, pick and choose the tools you need and combine our tech with your own creations seamlessly.

• Accessible for everyone: Activate web3 logins (via the most popular crypto wallets) or web2 logins such email, steam, facebook and much more.

• Security: Non-custodial wallets and multiple recovery options so you can build a security model that fits your users.

• Seamless web3 payments: By implementing any thirdweb wallet, our web3 payment solution is automatically available. Let your users swap, bridge and transfer assets in app, with crypto or credit card— developers receive a share of fees from day one!

• Any token on any EVM: thirdweb’s wallets are compatible with any EVM token on any EVM chain, plus our universal bridge facilitates transfers between them, so no user needs to bridge manually.

Get started with thirdweb In-app wallets

How to add Embedded Wallets to your app

So, are you ready to add embedded wallets to your app?

Here’s how you get started:

1. Sign in to (or create) your thirdweb account

2. Get your client ID

3. Choose your framework/Language

4. Install the Connect SDK in your chosen language

5. Set up the client

6. Create In-App wallets via your newly configured setup

For the full details check out our technical docs here →

The future of web3 UX

Embedded wallets promise to make the entry of users and their activity in web3 simpler and more secure. This paves the way for improved user experience and their transactions in web3.

As more users move from web2 to web3, the need for easy-to-use and secure wallets will increase. Embedded wallets will be essential for businesses aiming to provide a smooth and user-friendly web3 experience.