Liminal Wallet and the Growing Demand for Wallet-as-a-Service in Crypto Finance
                     Liminal Wallet and the 
Growing Demand for 
Wallet-as-a-Service in 
Crypto Finance
The crypto finance industry is 
moving quickly toward 
institutional maturity. What 
was once a decentralized 
innovation has turned into an 
essential part of the modern 
financial system. As more 
people and organizations 
handle digital assets every 
day, new questions arise 
about how to store, protect, 
and manage those assets 
safely.
WHAT IS 
WALLET‑AS‑A‑SERVIC A complete WaaS framework generally 
E includes the following features:
Protection of private keys using cryptographic 
methods such as Multi‐Party Computation 
(MPC) or multi‐signature authorization
Division of wallets into hot, warm, and cold 
layers for better security and liquidity 
balance
Automated operations like fund sweeping, 
gas fee optimization, and transaction 
retries
Compliance tools covering Know‐Your‐Customer 
(KYC) and Anti‐Money‐Laundering (AML) 
processes with full audit logs
Real‐time controls, monitoring panels, and 
access permissions for secure usage
WHY THE DEMAND 
FOR WAAS IS 
INCREASING
Managing crypto wallets is not just about storage but also about technical 
scalability and regulatory trust. Many organizations are now turning to WaaS 
because:
Security  has  become  critical:  Storing  private  keys  independently  is  
risky.  WaaS integrates advanced cryptography to reduce theft or data loss.
Operational  costs  are  high:  In‐house  wallet  development  demands  
extensive engineering, audits, and maintenance. WaaS lowers costs while 
improving reliability.
Regulations are tightening: Authorities require companies to meet strict 
AML and record‐keeping  standards.  WaaS  systems  include  many  of  
these  compliance elements by design.
Transactions must scale fast: WaaS helps maintain performance during 
high‐volume activity and ensures predictable transaction times.
Companies prefer focus: Businesses can concentrate on products and growth 
rather than wallet security or custody management.
HOW 
WALLET‑AS‑A‑SERVICE 
WORKS
WaaS platforms operate through an easy‐to‐integrate 
process that combines automation and transparency.
1.Integration – The client connects its system with the 
WaaS provider through secure APIs for wallet creation 
and transaction handling.
2.Key Management – Private keys are managed using 
cryptographic splits so that no single entity controls the 
full key.
3.Wallet Segregation – Funds are spread across hot, warm, 
and cold wallets to achieve both accessibility and safety.
4.Automation Rules – Policies automatically trigger fund 
transfers when balances reach certain limits.
Compliance and Monitoring – Every action is logged and 
checked through built‐in AML and KYC review 
processes.
TAIWAN’S GROWING INTEREST IN 
REGULATED CRYPTO 
INFRASTRUCTURE
Taiwan has become one of Asia’s most 
active regions in establishing crypto 
regulations. The Financial Supervisory 
Commission (FSC) now requires all 
Virtual Asset Service Providers to 
register under its AML guidelines by 
September 2025. Companies that do 
not register face penalties.
INTEGRATING WITH LIMINAL’S 
WALLET INFRASTRUCTURE
Liminal Wallet uses an MPC‐based key management method where 
the key is never formed or stored in one single place. This eliminates 
the central point of failure and significantly reduces risks related to 
hacking or insider misuse.
The platform also divides funds between hot, warm, and cold wallets
. Automated sweeping ensures that any excess funds are regularly 
shifted from online storage to cold storage, keeping liquidity 
available but security prioritized. Auto‐refill functions move funds 
back into hot wallets when operational balances drop below a set 
level.
CONCLUSION
Wallet‐as‐a‐Service is becoming an essential 
building block for crypto finance worldwide. With 
stronger AML mandates and clearer legal 
standards coming into force, Taiwan and similar 
markets will see wider WaaS adoption across 
fintech companies and digital exchanges.
Solutions such as Liminal Wallet illustrate how a 
well‐structured wallet system can ensure 
compliance, strengthen user trust, and 
automate core operations. As the global focus 
moves toward regulated digital finance, WaaS 
will enable businesses to innovate safely while 
maintaining transparency and security.