Delegated Wallets Let AI Agents Spend Without Controlling All Funds

A delegated wallet is a non-custodial wallet model where the end user holds the signing credential that authorizes transfers, while an infrastructure provider can host the wallet infrastructure but cannot move funds on the user’s behalf. The practical outcome is clear control: only the user’s credential can approve spending, even if a service operates the wallet backend. DFNS describes this model and the associated trade offs, including how the signing authority can live on a user device, such as a passkey.

For AI agents, delegated wallets make controlled autonomy possible. An agent can prepare or request transactions and operate within policies or allowances, but it never receives the all-powerful private key. The user’s credential, or a narrow, revocable authorization derived from it, is required for anything that leaves the wallet.

How delegated wallets work under the hood

In a delegated wallet, the provider sets up wallet infrastructure and delegates real signing authority to a user-held credential. The mechanics vary by implementation, often using MPC or threshold signatures on the backend, while the user’s device-bound credential is the gate that authorizes on-chain transfers. According to DFNS, a valid transaction requires the user-side credential and any required access token before the provider’s infrastructure can finalize the operation.

… Continue reading the full article at the original source below.