Stablecoin Payments Glossary
Digital Wallet
A digital wallet is software or hardware that manages the cryptographic credentials used to control digital assets and enables users to create, sign, and submit transactions.
Explanation
Blockchain assets remain recorded on the ledger. The wallet manages private keys, signing permissions, addresses, transaction data, and connections to blockchain networks or applications. Wallets can be custodial, where a service provider controls the signing keys, or self-custodial, where the user controls them. Some wallets also provide exchange, payment, recovery, or identity functions.
Why it matters
Wallet architecture determines who can authorize transfers, who bears key-management risk, and how users access stablecoin payments and decentralized applications.
Example
A mobile self-custodial wallet can generate an address, sign a USDC transfer with the user's private key, and broadcast the transaction to the network.
Related terms
Last reviewed: September 2026