Crypto wallets now feel a lot more like Venmo

Consider how, just three years ago, the only thing you could do with Phantom was access the Solana blockchain. MetaMask, meanwhile, was limited to Ethereum. Sure, alternatives like Coinbase Wallet offered access to more assets but, like other wallets of the time, it suffered from a ghastly interface that required users to run a gauntlet of sub-nets, confusing gas fees, and more. The experience was miserable for crypto natives. For everyone else, it was nigh impossible.

Then something changed. After years of promises, developers finally succeeded in pushing the clunky technical elements to the background, while adding a host of practical features. The result has been an uptick in useful real-world applications, including Phantom’s Kalshi offering, and also in souped-up new offerings like Coinbase’s rebranded Base as well as Robinhood Wallet.

This new generation of wallets offers the best aspects of decentralized crypto by making the customers the ultimate custodians of their assets. At the same time, they offer interfaces that are starting to feel like Venmo or online banking apps—which should be table stakes for any of these products looking to break into the mainstream. The question now is where these wallets will fit in day-to-day life. Will they become the successor to web browsers, as Coinbase CEO Brian Armstrong and others have predicted, or will they be something else entirely?

JP Richardson is the founder and CEO of Exodus, another leading wallet that recently added a suite of stablecoin payment tools. He told me the browser analogy doesn’t really fit, arguing wallets are better seen as a superior type of banking app—one that will be able to bridge disparate financial services. “We believe it should not be three apps, it should be one app. Why can’t you take your brokerage app, and tap and buy groceries?” he asked.

Trevor Traina, the founder of a wallet called Kresus, whose customers include Sotheby’s auction house, has another take. He believes the tools will have a much broader footprint. He sees a world where wallets are not just for managing our assets, but also become repositories for vital documents such as a will, insurance, or a law license. 

The technology is certainly there to support Traina’s vision. That includes blockchains, which can supply a permanent and tamper-proof ledger, but also newer privacy tools like zero-knowledge proofs. Together, this tech provides a way to safeguard all of one’s personal data, while also being able to meet the constant need to show identification that modern life demands. All of this could get more interesting still if wallets like Sam Altman’s World App, which includes an anti-bot biometric layer, get more traction.

Now for the cold water: Just because you build it doesn’t mean they will come—or come anytime soon at least. I spoke with analyst James Wester, one of the shrewder observers of the crypto and fintech scene, and he pointed out that the idea of an “everything app” has been around for years but shows few signs of getting adopted. A big reason for this is inertia.

Right now, our existing apps and payment tools work pretty well, so it’s unlikely we’ll see mass wallet adoption anytime soon without some sort of external nudge. Wester points out that Apple Pay and Google Pay have been around for a decade, yet a huge number of people keep paying with physical cards—because they can. This will change as younger people who are well versed in tech and crypto make up a greater portion of the economy. But until then, wallet makers may have to find a way to make their suddenly attractive products downright irresistible.

Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts

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Circle’s new privacy coin: Stablecoin giant Circle is working with an upstart blockchain called Aleo to issue a spin-off of its flagship token called USDCx, which will let banking clients obscure private transaction histories. (Fortune)

Charters for all: The OCC issued national trust bank charters to Circle, Ripple, BitGo, Paxos and Fidelity Digital Assets. The move comes amid a broader move by the agency to issue more such charters, which do not allow taking customer deposits or accessing FDIC insurance. (Axios)

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