Telegram’s integrated crypto wallet bot, Wallet, has chosen a custody solution over self-custody to make it easier for new users to onboard to cryptocurrencies, according to the Wallet’s Chief Operating Officer, Halil Mirakhmed. In a statement to Cointelegraph, Mirakhmed explained that self-custody can be challenging for those unfamiliar with crypto, as managing seed phrases for non-custodial wallets can be difficult. By opting for a custodial solution, Telegram’s Wallet aims to simplify the onboarding process and make it more accessible for beginners.
“If you want to introduce as many people as possible to crypto, self-custody becomes exceedingly difficult,” Mirakhmed said.
Mirakhmed further stated that with the custodial solution, users only need the recipient’s contact information on Telegram to send money, eliminating the need for public blockchain keys. This approach makes the onboarding process “very simple” and less intimidating for newcomers.
Advantages of Custodial Solutions
While self-custodial wallets, such as MetaMask, offer users control over their seed phrases and private keys, the risk of losing access to funds if these are misplaced or forgotten is high. In contrast, custodial solutions like Telegram’s Wallet can often recover funds even if a password is lost, providing a safety net for beginners.
Integration into Telegram
Starting from November, Telegram’s Wallet will be fully integrated into the messaging app’s settings for all users, eliminating the need for manual setup. Initially, the comprehensive rollout will target select African and Latin American countries, followed by the Middle East, South East Asia, Central Asia, and Eastern Europe.
“Telegram’s Wallet aims to expand its reach, allowing users to buy, sell, and send cryptocurrencies including Bitcoin, Tether, and TON token,” Mirakhmed commented.
The Wallet team had previously introduced a functionality that enables merchants to receive payments through Telegram using Bitcoin or Tether. Currently, Telegram’s Wallet has around 2 million users, a small fraction compared to the platform’s total user base of over 700 million.
