WalletConnect for unhosted wallet verification: Explained Building a compliance flow as a business that serves users interacting with self-custodial wallets can be a challenge. Under the Travel Rule, businesses must collect and pass on information about the originator and beneficiary of a transfer. This left self-custodial wallets in limbo: an address is not a person, it has no name attached, no directory to check it against, and no way to tell you that the user who typed it actually controls it. And importantly, there’s no KYC stored on the blockchain. As such, DeFi apps and businesses that handled peer-to-peer payments were in an uncertain regulatory market with unclear methods of proving wallet ownership, such as self-declaration. Luckily, in 2026, there’s a lot more regulatory clarity around decentralized finance and self-custodial wallets. In many jurisdictions, regulators now set out how businesses can verify that a customer owns or controls a self-custodial wallet. That’s why WalletConnect has built the flow for these types of wallets: so you can support your compliance obligations no matter which wallets your users bring. What is WalletConnect Wallet Verification? Wallet Verification proves that a user controls a self-custodial (unhosted) by making a cryptographic signature. The mechanism is simple: The user opens a specific link, connects the wallet they already use, and signs a message with the wallet’s private key. This is the integral part to proving ownership, as only the person with control of the private key can move funds associated with that address—it’s the core mechanism of how blockchain accounts work. What’s more, no funds move and no gas is required, because a signed message is not a transaction. Since blockchain accounts and their addresses are public, the signature can be verified against the address, at which point a timestamped record is returned to your systems. What is Wallet Verification For? Wallet Verification supports the self-hosted wallet requirements in Travel Rule regimes based on FATF Recommendation 16. These apply to Virtual Asset Service Providers (VASPs), meaning businesses that exchange, transfer or safeguard virtual assets for customers, even when their customers transact with self-custodial wallets. In the EU, Crypto Asset Service Providers must assess whether a self-hosted wallet is owned or controlled by their customer for transfers above EUR 1,000. Comparable requirements exist in jurisdictions including the UK, UAE, Hong Kong, Switzerland, Jersey, Liechtenstein, Singapore and the Philippines, though thresholds and accepted methods vary. Self-declaration alone is generally not considered sufficient. Regulators expect technical proof, such as a cryptographic signature or a microtransaction (Satoshi test). If your business operates globally or in one of these jurisdictions and serves users with self-custodial wallets, wallet verification is likely a requirement in some way. Who Wallet Verification is for Exchanges, Brokers, Custodians and onchain payment companies If you run a financial institution, fintech or PSP that integrates non-custodial wallets either for your customers or to manage stablecoin or treasury funds, you’ll likely need a method to help those customers prove ownership of their wallets. As financial institutions typically have existing compliance programs, these flows must return the record in a form their controls can read—which WalletConnect’s solution is built for. iGaming, prediction markets & payroll firms processing crypto or stablecoin payouts If you run a marketplace or platform that processes payouts in crypto or stablecoins, you’ll need a wallet verification flow. This could include platforms and apps like iGaming, creator marketplaces, payroll and remittance businesses and exchanges processing withdrawals. How Wallet Verification works 1. The Business initiates the verification flow Your business can initiate the verification flow using a single API call. 2. The customer is provided with a link to verify The business must then provide the customer with a link that leads to a WalletConnect-hosted page for verification. 3. The customer verifies the wallet Once on the page, the customer is prompted to connect their wallet and sign a message with their private key. The process is handled by WalletConnect’s SIWX authentication, allowing ownership verification of both EVM and Solana unhosted (self-custodial) wallets. 4. The record of the verified wallet is returned to the business Once the wallet is verified, WalletConnect creates an auditable record of the verification including the signature as proof of control, plus the timestamp, chain, domain, URI, nonce, session ID, connection status, session reuse and connected-wallet metadata. This information is then handed back to the business. Why choose WalletConnect for wallet verification End-to-End verification flow With WalletConnect wallet verification, the entire flow is built for you: all you need to do as a business is plug-and-play. This is opposed to most solutions where you’d have to create your own verification flow using SIWE which would be EVM-only, or WalletConnect’s SIWX, at which point you’re much better off trusting the infrastructure we build and maintain ourselves. Compatible with every type of self-custodial wallet The wallet verification flow works for 700+ self-custodial (unhosted) wallet providers compatible with the WalletConnect protocol; including retail wallets like MetaMask, hardware wallets like Ledger and institutional wallets like Fireblocks. Supports EVM and Solana wallets Unlike most competing flows which rely on Sign in with Ethereum (SIWE) to provide the wallet connection and signature, WalletConnect’s SIWX flow allows for multichain authentication for the chains the WalletConnect protocol supports. That allowed us to launch the Wallet Verification flow immediately for EVM and Solana wallets, with support for more chains launching in future. The customer doesn’t need gas or funds onchain The customer can sign a message without holding funds or incurring gas fees. Because the flow hinges on connecting a wallet and signing a message, rather than processing a transaction, there’s no need for any funds to touch the verification process. This is much more user-friendly that Satoshi tests (microtransactions) some other solutions use, whereby the user must transfer real funds and pay real gas to obtain the same verification. Eliminate user error The sending or receiving address is confirmed from the connected session, with no manual entry. This removes the copy-paste error, and the subtler failure of a correct address on the wrong chain. Retain control A record is captured at signing and returned to your systems: proof of control as a signature, timestamp, chain, domain, URI, nonce, session ID, connection status, session reuse and connected-wallet metadata. It is then returned through one API in real time, so retention stays under your control rather than sitting with a vendor. This is the part that turns verification from a check you performed into a check you can evidence. Reusable Proof Most compliance flows require records to be returned in a specific format and to potentially last for years in order to be reused. The WalletConnect wallet verification flow was built with those formats in mind, and also to comply with GDPR requirements on data management and storage. Optional Sanctions & IP screening WalletConnect allows optional sanction screening as part of both the Wallet Verification and Travel Rule information capture products. Addresses are screened against OFAC, EU, UK and UN Sanction lists and checked for restricted-region IPs —all within your flow. Then, the result is returned to your systems and the outcome is set by the policy you configure. Optional Travel rule information capture To be fully Travel Rule compliant, you also need to capture specific information about the beneficiary within the transaction flow. That’s why WalletConnect also allows you to incorporate the travel rule information capture to ensure your business is fully travel rule compliant. How to integrate WalletConnect’s Wallet Verification product To get started with WalletConnect’s wallet verification, simply reach out via this form to speak to our team. Our staff will guide you on what’s possible and the steps to integrate. Wallet Verification: The Key to compliance for unhosted wallets For your business to be fully compliant in today’s regulatory landscape—especially if it’s serving users with unhosted (self-custodial) wallets and processing stablecoin or crypto payouts—wallet verification is a must; not an option. With WalletConnect’s battle-tested infrastructure and years of experience in the onchain landscape, you can rest assured your flows are reliable, secure and built for purpose. So, are you ready to unlock unrivalled compliance? Get started with WalletConnect. Wallet Verification FAQ Does the user send a transaction? No. They sign a message. No funds move and no gas is required, which is the main advantage over the microtransaction method. Which wallets are supported? All EVM and Solana wallets compatible with the WalletConnect protocol. Does verification need repeating? Not by default. The record can be reused for later transfers involving the same address, in line with your own risk policy. What do we actually receive? An attestation record returned to your systems, plus an export-ready version in the WalletConnect dashboard containing proof of control, timestamp, chain, domain, URI, nonce, session ID, connection status, session reuse and connected-wallet metadata. Is this identity verification? No. It proves control of a wallet. It is not KYC, not customer due diligence, and does not replace either. Do we have to use WalletConnect payments to use it? No. It is an add-on to any WalletConnect product flow, and it is also embeddable in your own flow. WalletConnect is a technical service provider, not a regulated financial services firm and not a law firm. Nothing here is a warranty that use of these features achieves compliance. You remain solely responsible for your own regulatory obligations and for determining what applies to you, including your licence scope and jurisdiction. These features do not replace your AML or CFT programme. Not legal advice.(Historical earnings: For 2026FY (period ended 2026-07-03), Sandisk reported basic EPS of 77.78, diluted EPS of 73.76, and net income of USD 11.433 billion. Consensus expectations: For the upcoming event on 2026-10-29, consensus EPS is 46.2722 and consensus revenue is USD 10.677 billion.)