The problem WaaP is trying to solve is not new. Getting regular people to use crypto applications has been painful for over a decade. Seed phrases, browser extensions, gas fees, and the constant fear of losing access have kept hundreds of millions of potential users on the sidelines. The embedded wallet market has grown rapidly in response. According to Intel Market Research, the global MPC wallet market reached $70.8 million in 2025 and is projected to hit $137 million by 2031. The broader crypto wallet market surged 32% to $19 billion in 2025.
But most embedded wallet solutions come with a catch. WaaP is betting that catch is big enough to build an entirely new protocol around fixing it.
The Hidden Cost of Convenience
Embedded wallets, the kind that let you sign up for a crypto app with your email or Face ID, have become standard. Providers like Privy, Web3Auth, and Coinbase WaaS offer developers SDKs to embed wallets into applications. The onboarding experience is smooth. The problem is underneath.
Most of these services operate as centralized infrastructure. A company runs the backend, holds partial control over key material, and can change pricing, terms, or shut down entirely. For developers, this creates vendor lock-in. For users, it introduces a trust assumption that contradicts the entire point of crypto: you are supposed to own your own assets. If the service behind your "self-custodial" wallet can theoretically reconstruct your keys or deny access, you do not truly own anything.
WaaP takes a different approach. Instead of running on a company's servers, it operates on Ika, a decentralized MPC (multi-party computation) coordination layer built natively on Sui. Ika raised over $21 million in funding including a strategic investment from the Sui Foundation, and can process up to 10,000 signatures per second with sub-second latency.
How WaaP Actually Works
For non-technical readers, here is the simplest way to understand WaaP. When you create a wallet, your signing key is split into two pieces using 2PC-MPC (two-party computation with multi-party computation). One piece lives on your device. The other is distributed across Ika's decentralized network of nodes. Neither piece alone can move your funds. Both must cooperate to sign a transaction.
This is fundamentally different from a system where a company holds a copy of your key on its servers. With WaaP, policy controls like spend limits or contract allowlists are enforced by smart contracts on Sui during signing, not by backend logic a company controls. The result is a wallet that feels like signing into any normal app but carries security properties closer to a hardware wallet.
Shady El Damaty, Holonym Foundation CEO, explains,
"Sui developers can now offer seamless, seedless self-custody without taking on the risks of traditional wallet services. With Ika's decentralized security layer native to Sui, there's no tradeoff between user experience and true ownership. This is what embedded wallets should have been from the start."
Why Sui, and Why Now?
The choice of Sui is strategic. Sui has grown into one of the top Layer 1 blockchains by activity. In October 2025, Sui hit a record $2.6 billion in TVL, a 160% increase from the prior year. Cumulative DEX volume surpassed $156 billion. Sui's object-centric data model and parallel transaction execution make it well suited for the real-time cryptographic operations WaaP and Ika require.
Evan Cheng, Co-Founder and CEO of Mysten Labs, the original contributor to Sui, explains,
"Using an embedded wallet shouldn't require giving up ownership. With WaaP built on Ika and native to Sui, developers and users both get a brand new way to access Sui. This is a win for the ecosystem."
human.tech, the privacy-first infrastructure suite built by the Holonym Foundation that powers WaaP, already serves nearly 3 million verified users, with over 43 million credentials issued and more than $500 million in protected value. Bringing this to Sui connects a proven user base with one of the fastest-growing blockchain ecosystems in production.
Final Thoughts
WaaP's launch on Sui represents a meaningful step in closing the gap between crypto's user experience ambitions and its security guarantees. The embedded wallet space is crowded, but most solutions still require developers to trust a company with some degree of control over user keys. WaaP's protocol-level approach, where signing authority is split cryptographically and policies enforced by smart contracts, is architecturally distinct.
Whether WaaP captures meaningful market share depends on developer adoption and Ika's performance under real-world load. But the direction is right. As AI agents increasingly operate onchain and automated workflows become standard, wallets that can delegate execution within defined boundaries while humans retain authority will become essential. WaaP is building for that future, on a chain with the throughput to support it.
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This author is an independent contributor publishing via our