Expert: Are mnemonic-free crypto wallets the key to enabling mass self-custody?

A new wave of self-custody smart accounts aims to eliminate mnemonic phrases, introduce card-based spending, and remove the fear of permanently losing access to crypto assets.

Author: Savannah Fortis

Source: Cointelegraph

Article translation: Chang

A longstanding user experience hurdle in cryptocurrency—the dreaded seed phrase—is facing a serious challenge. As wallet providers experiment with programmable smart accounts and streamlined recovery, the conversation around self-custody is shifting from technical responsibility to daily usability.

On this week’s “The Clarity in Crypto” podcast, host Nathaniel Whittemore, Cointelegraph’s Gareth Jenkinson, and Ready (formerly Argent) CEO Itamar Lesuisse discussed how privacy, self-custody, bitcoin-backed lending, and seedless wallets are converging to reshape how people store and spend digital assets.

A recurring concern among both crypto newcomers and veterans is the vulnerability of seed phrase security. As Jenkinson pointed out, users often underestimate how easy it is to lose access:

“There are hundreds of different stories of people losing control of their wallets… Your house could burn down. There are many, many different reasons why you’d want another option besides just keeping the seed phrase safe.”

Smart Accounts and the Rise of “Next-Gen Crypto Banks”

Ready’s model brings a fundamental shift: accounts that do not rely on a single secret. Instead, they are programmable, offering recovery methods, built-in spending tools, and the ability to leverage assets without selling bitcoin.

One feature gaining attention is: the ability to borrow against long-term bitcoin holdings and spend via card, all while retaining self-custody.

Lesuisse emphasized the distinction from traditional custodians, drawing a clear line between centralized and self-custodial control:

“It’s the difference between ‘don’t be evil’ and ‘can’t be evil.’ We can’t take your money. We can’t try to be evil.”

Bridging the Gap for the Next Billion Users

With its smart account architecture, Ready says its goal is to look less like a traditional crypto wallet and more like a new kind of bank powered by crypto, where users can deposit, grow, borrow, and spend—without relinquishing control to intermediaries.

As Jenkinson noted, simplifying the crypto experience is crucial for mass adoption, especially as mainstream users expect intuitive, Web2-like design combined with true ownership.

For many, combining ease of use with self-custody may finally resolve long-standing fears around loss, complexity, and trust.