Could wallets without seed phrases revolutionize self-custody in crypto?

A fresh approach to self-custodial wallets is emerging, aiming to abolish the traditional seed phrase system while introducing card-linked spending options. This pivot is intended to alleviate users’ anxieties about potentially losing their access to crypto forever.

During a recent episode of The Clear Crypto Podcast, host Nathaniel Whittemore, Cointelegraph’s Gareth Jenkinson, and Itamar Lesuisse, CEO of Ready (formerly Argent), delved into crucial issues such as privacy, self-custody, Bitcoin-backed borrowing, and the rise of seed-phrase-free wallets—all of which contribute to redefining the management of digital assets.

The concern over the fragility of seed phrases among both new and seasoned crypto users is prevalent. Gareth Jenkinson pointed out how easy it is for users to lose access:

“There’s hundreds of different anecdotes of people either losing control of their wallets… Your house could burn down. There are lots and lots of different reasons why you would want options other than just having to keep a seed phrase safe.”

Smart accounts: A shift towards the crypto neobank concept

Ready’s design signifies a transformative change, facilitating accounts that are not reliant on a single secret. Instead, they are programmable and offer various recovery methods along with built-in spending tools while allowing users to leverage Bitcoin without needing to sell it.

Crypto Wallets

Additionally, a new feature is gaining popularity: the ability to borrow against long-term BTC holdings while spending via a card without giving up custody.

Lesuisse highlighted the key distinction between traditional custodians and their service, marking the difference between centralized and self-custodial control:

“It’s don’t be evil versus can’t be evil. We cannot take your money. We cannot try to be evil.”

Closing the gap for the next billion users

Through a smart-account framework, Ready aspires to act less like a conventional crypto wallet and more like a crypto-oriented neobank. This would enable users to deposit, grow, borrow, and spend without transferring control to third parties.

As Jenkinson emphasized, streamlining the crypto experience is vital for broader adoption, especially when mainstream users anticipate intuitive, web2-like interfaces combined with actual ownership.

By integrating simplicity with self-custody, long-term concerns about loss, complexity, and trust may be addressed effectively.

To listen to the entire discussion on The Clear Crypto Podcast, check out the full episode here on Cointelegraph’s Podcasts page, and also on Apple Podcasts or Spotify. Don’t forget to explore Cointelegraph’s extensive lineup of similar shows!