All posts by Nik Gavrilov

Choosing the right wallet model—custodial, non-custodial, or embedded—affects security, compliance, and user control. Custodial wallets offer regulatory oversight but introduce centralization risks. Non-custodial wallets ensure user autonomy but require strong security practices. Embedded wallets balance convenience with varying levels of custody. Each model must align with regulatory frameworks like MiCA, SEC, and FATF.

Digital wallets are now a core part of banking, but they bring serious security risks. Cybercriminals exploit credential stuffing, malware, and man-in-the-middle (MITM) attacks to steal sensitive financial data. Banks must comply with regulations such as PSD2, GDPR, and MiCA while strengthening security.

This integration enhances the overall user experience, unlocks new revenue opportunities, and positions exchanges to excel in a rapidly evolving financial landscape.