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Privy offers the following types of wallets. images/types-of-wallets.png

Digital asset accounts

Digital asset accounts are the most fully-featured primitive for securing and managing digital assets at scale. Accounts are designed for teams building fintech, trading, and consumer applications that need to manage user balances and move assets across chains and custody models. Accounts are comprised of a group of embedded wallets and enable you to represent a single unit of balance across multiple wallet configurations (EVM, SVM, BTC, custodial, non-custodial, and more). You can both use the individual wallets within the account directly or the account as a multiplexed abstraction over the wallets. Accounts let you compose the functionality of multiple different wallet configurations into your app. This enables you to compose multiple features like chain-specific functionality, on- and off-ramps, card issuance, access to DeFi, and more into your financial flows.

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Embedded wallets

Privy’s embedded wallet system lets you build wallets directly into your app whether you’re building self-custodial wallets for your users or a wallet fleet you control. Privy’s wallet infrastructure ensures only the appropriate party controls the wallet. This means you can set up wallets for any user, customer, business, or agent under a range of custody options. Embedded wallets can be configured as non-custodial or custodial. Privy surfaces both user-centric abstractions enabling you to authenticate users and generate wallets for them, as well as wallet-centric abstractions whereby you can create wallets with assigned authorization keys to control them.
Using embedded wallets is primarily recommended for client-side usage of wallets or low-level key management operations. For higher-level asset management, we recommend using digital asset accounts.

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External wallets

External wallets are managed by a third-party client, such as MetaMask, Phantom, or Rainbow. All browser extension wallets, hardware wallets, and mobile app wallets fall into this category. Privy enables users to connect external wallets to your application to execute signatures and transactions. If they choose, users may use multiple external wallets within your app and may link these wallets to their account. You can request signatures and transactions from an external wallet directly, or by integrating Privy alongside a library like wagmi, viem, or @solana/web3.js. Learn more

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