How Para Powers Non-Custodial Embedded Wallets: No Lock-In, Portability, and Secure Recovery

Many embedded wallets sacrifice user custody for a smoother experience. Para delivers both: a seamless, non-custodial wallet powered by secure MPC and passkey authentication.

Para Wallets Are Non-Custodial by Design

Para wallets are non-custodial at the architectural level. Instead of generating a private key on a centralized server or holding custody of user credentials, Para uses a 2-of-2 distributed MPC model: one key share lives on the user’s device, secured with a passkey, and the other is encrypted in the cloud using HSM-backed infrastructure.

The full private key is never assembled (not even during signing), meaning:

• Para and the app never have full key access
• Users maintain cryptographic control over their assets
• Wallets can be exported, migrated, or recovered independently

This is a fundamentally different model from custodial or semi-custodial wallets, which create hidden custody and platform lock-in risks when they store and control private keys on behalf of users.

With Para, users don’t just “feel” like they own their wallet. They actually do.

No Vendor Lock-In

Many embedded wallet providers lock builders into a proprietary system. If you switch vendors, your users lose access, or you face a complex migration.

Conversely, wallets created with Para are fully portable. Apps can export wallets, users can recover them outside the original app, and developers retain the ability to move infrastructure without breaking the user experience.

Export and Portability

Para wallets are also non-custodial by architecture, which includes exportability. Developers can give users the ability to export their key shares (or full private key via recovery flow) in standard formats. Exportability ensures full control, even outside Para or the original app.

Use cases include: Migration to a new provider, regulatory exit strategies, or advanced self-custody.

Secure Recovery Without Seed Phrases

Traditional non-custodial wallets trade usability for control. Losing your seed phrase means you're locked out. Para avoids this with a recovery model that uses passkeys and distributed MPC, eliminating the need for recovery phrases entirely.

Each wallet is tied to a passkey secured by the user’s device (via iCloud Keychain, Android Keystore, etc.). If a user loses access, your app can trigger a recovery flow, where the user reauthenticates and a new key share is generated using Distributed Key Generation (DKG).

Because Para uses MPC, no single party (including Para) can access the full key, but users can regain full control with the right credentials, keeping the wallet non-custodial from end to end.

WalletConnect Compatibility

While Para wallets are embedded, they’re also interoperable. Users can use Para Connect along with WalletConnect to interact with third-party apps like Uniswap or Snapshot without needing a separate extension wallet like MetaMask.

Example: A user logs in to your app with their Para wallet, then signs into Uniswap via WalletConnect to swap tolkens.

ENS and Para

Para wallets are fully compatible with Ethereum Name Service (ENS). Users can register or import a human-readable name (like alice.eth) to their Para wallet, just like with MetaMask or any EVM-compatible wallet.

Migrating from a Custodial Wallet to a Non-Custodial Embedded Wallet: How Hard Is It?

Swapping a custodial wallet for a non-custodial embedded one doesn’t require a full rewrite. With Para, you can pregenerate wallets tied to existing user identifiers (like email or OAuth) using a simple server-side call.

If you're building with embedded wallets, Para lets you offer seamless UX without giving up custody, control, or portability.

Want to integrate non-custodial embedded wallets? Get started or get in touch!