How Aligned, Privy, Dynamic, Turnkey, and Magic compare

Summary

A small group of established providers leads wallet-as-a-service solutions (WaaS) on Ethereum, including Aligned, Privy, Dynamic, Turnkey, and Magic. All are non-custodial and primarily compete on four things: how they secure the key, how they handle accounts and gas, how much of the stack they cover, and who owns the company.

For a consumer app or a financial institution building on Ethereum, the wallet is the integration you most want to get right the first time. It’s what users touch directly and trust with their funds, and it signs every transaction they make. It’s also the decision that compounds: once people hold balances, switching providers means migrating live accounts, so getting it right early pays off most.

Today’s leading WaaS providers look almost identical on the surface. They’re all non-custodial, and they all spare users the crypto mechanics: no seed phrase, no gas token, no contract prompts to approve. The differences that shape an integration sit underneath: the key-security model, how accounts and gas work, how much of the stack comes from one vendor, and who owns that vendor.

WaaS Provider	Key security model	Account model	Stack scope	Ownership
Aligned	The user’s key stays on their device (e.g. a passkey), and Aligned co-signs. Both signatures are required, and the account contract checks them on-chain	EIP-7702 smart account, no bundler or paymaster	Wallet + ZK rollup + proof aggregation + interoperability	Founded by LambdaClass veterans
Privy	Shamir 2-of-2: one share in a secure enclave (TEE), one stored by Privy, both on Privy’s side; reassembled in the TEE	EOA by default; optional ERC-4337 smart wallets from third-party providers, with the EOA as signer; EIP-7702 authorizations supported	Wallet only	Stripe
Dynamic	TSS-MPC (2-of-2 / 2-of-3), server share in a TEE	EOA with native EIP-7702 smart-account features and gas sponsorship	Wallet + auth + external-wallet connectors	Fireblocks
Turnkey	Keys held in a secure enclave (TEE), with a policy engine that checks every signature	Signing layer where you build the account (ERC-4337 + EIP-7702 supported)	Signing / key-management layer	Independent
Magic	Secure enclave (TEE), a cloud key-management service, and key sharding	EOA + EIP-7702 smart account (via Alchemy)	Wallet only	Wallet business being acquired by Payward, Kraken’s parent company

Top wallet-as-a-service providers on Ethereum

The field of credible wallet providers is small but far from uniform. Each was built around a different priority, and they overlap enough to blur together. Understanding what each one is keeps the biggest name from standing in for the best fit.

Aligned: Independent, founded by the team behind LambdaClass, and the only provider in the group focused exclusively on Ethereum: it runs on Ethereum L1 and on ZK rollups built with ethrex, while the others prioritize multichain reach. Every account is an EIP-7702 smart account that requires two signatures: one from the user’s key on their device and one from Aligned’s backend. It ships as part of a larger stack, with the rollup, proof aggregation, and interoperability all coming from the same team. Sovra runs identity for 8M+ people on it.

Privy (Stripe): The most widely deployed of the group by self-reported counts, with 200M+ accounts and customers like Hyperliquid and Ramp. It splits each key into two Shamir shares, both held on Privy’s side (one inside a secure enclave), and reassembles the key only inside the enclave. Its default EOA wallet can be upgraded in place through EIP-7702, or act as the signer of a separate ERC-4337 smart wallet. It carries several independent audits plus SOC 2 Type I and Type II.

Dynamic (Fireblocks): As much a login-and-wallet-connection platform as an embedded wallet, with a wide range of sign-in methods and connectors to 800+ external wallets. That fits apps where plenty of users already have a wallet, alongside those who need one made. Its keys use threshold-signature MPC. Customers have included Kraken and Ondo.

Turnkey: The signing and key-management foundation other wallets build on. It generates and uses raw private keys inside secure enclaves, with a policy engine that checks every signature. Of the enclave-based providers, Turnkey is the one that lets you verify the enclave itself: reproducible builds and remote attestation confirm the exact code that touched the key. Independent, founded by an ex-Coinbase Custody team. Customers include Bridge and Polymarket.

Magic: The oldest of the group, launched in 2018 and known for email-first onboarding. It protects keys with a mix of secure enclaves, a cloud key-management service, and sharding, and it holds the widest set of compliance certifications in the group: SOC 2, SOC 3, and ISO 27001. Its wallet business is being acquired by Payward, Kraken’s parent company, in a deal ag...

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