Solana Unveils Smart Wallets—Revolutionizing Crypto UX with Zero Gas Fees!
Solana launched Solana Smart Wallets, eliminating gas fees and private key risks. In collaboration with Crossmint and Squads Protocol, these wallets enhance security and user experience by removing transaction approval prompts. The integration also allows developers to integrate wallets with just ten lines of code, offering scalability to millions of users.
Crossmint’s Solana Smart Wallets introduce an embedded wallet system designed for security and ease of use. Unlike traditional wallets, programmable smart contracts replace seed phrases, private keys, and gas fees. Developers can build applications without facing the usual challenges of crypto transactions.
Unlike traditional embedded wallets, which typically just protect a wallet private key using social log-ins, smart wallets are a new generation of wallets built as programmable smart contracts.
They unlock major UX and security improvements compared to standard wallets.
— Crossmint (@crossmint) February 20, 2025
For enterprises, flexible custody structures allow multiple keys to control one wallet address. Users manage access through preferred non-custodial wallets like Phantom, while businesses integrate a server-side admin signer to automate transactions securely. Smart wallets streamline operations, delivering a faster and more efficient experience.
Squads Protocol powers the system, securing over $10 billion in digital assets. Strong security measures support large-scale adoption, making the technology ideal for financial institutions, gaming platforms, and AI-driven applications.
One of the biggest pain points in blockchain adoption has been gas fees and signing prompts, often discouraging new users. Solana’s gasless model removes that hurdle, making blockchain technology more appealing for everyday applications. AI-driven agents, gaming platforms, and financial services now have a smoother way to interact with users.
They're perfect for:
~ AI Agent providers: Launch fleets of non-custodial agents, with wallets controlled by the agent and owner
~ Gaming & Social: Create app-scoped wallets, without scary gas or signing prompts, for everyday users
~ Financial applications: Protect your user’s…
— Crossmint (@crossmint) February 20, 2025
For AI applications, businesses can launch non-custodial AI agents that control wallets on behalf of users. These AI-driven wallets function without human intervention, allowing for automated payments and digital asset management.
In gaming and SocialFi, app-specific wallets eliminate the need for gas fees and manual approvals, allowing players to make in-game purchases seamlessly. This new model significantly reduces friction, opening doors for blockchain-based gaming to compete with traditional mobile and console platforms.
Financial institutions have shown strong interest in integrating these wallets due to their security, scalability, and compliance-friendly architecture. By using programmable guardrails, fintech companies can offer non-custodial financial services without putting users at risk.
They're perfect for:
~ AI Agent providers: Launch fleets of non-custodial agents, with wallets controlled by the agent and owner
~ Gaming & Social: Create app-scoped wallets, without scary gas or signing prompts, for everyday users
~ Financial applications: Protect your user’s…
— Crossmint (@crossmint) February 20, 2025
One of the standout features is multi-party computation ( MPC ) and social logins, giving businesses flexibility in how they authenticate users. Unlike other wallets, there’s no vendor lock-in, allowing companies to switch providers without changing wallet addresses. This reduces dependency on a single infrastructure, making adoption more flexible and future-proof.
Solana Smart Wallets also facilitate cross-chain transactions, allowing users to buy, sell, or trade assets across different networks without dealing with multiple wallets. This shift pushes blockchain closer to mainstream financial adoption, bridging the gap between traditional banking and digital assets.
eXch platform denies laundering claims linked to $1.4B Bybit hack
eXch, a centralized exchange that does not require user KYC verification, has denied claims that it's laundering funds from the recent $1.4 billion Bybit hack, which has been linked to the North Korean hacking group Lazarus, according to The Block. The platform argues that these allegations are driven by those who are against the fungibility and on-chain privacy of decentralized cryptocurrencies.
Despite this, blockchain analysts have noted unusual ETH transfers to eXch, with a significant increase in volume: 20,000 $ETH in the past 24 hours compared to the usual 800 ETH. Meanwhile, eXch acknowledged on a forum post that an "insignificant portion" of the hacked Bybit funds did reach their platform, describing it as an "isolated case."
ByBit CEO: ‘We Can Cover 100% of the Stolen Ethereum’
Ben Zhou, Bybit CEO, assured the public that user funds were safe and that the platform could cover losses following the largest crypto exchange hack in history.
Security veterans and concerned crypto community members rallied behind Bybit on Friday, Feb. 21, after the exchange lost over $1.4 billion to hackers.
The largest-ever crypto exchange hack occurred while Bybit was attempting a routine transfer, Zhou said during a livestream following the incident. Specific details about the breach points remain scarce. However, initial reports suggest that hackers tricked Bybit’s signers into authorizing a malicious transaction from the platform’s Ethereum (ETH) cold wallet.
Just in: According to @zachxbt, Bybit faced a security incident (likely hacked) where $1.44B worth of funds were withdrawn.401,347 $ETH worth $1.12B90,376 $stETH worth $253.16M15,000 $cmETH worth $44.13M8,000 $mETH worth $23MLater, these funds were moved to another wallet.… pic.twitter.com/FAuoRx3Rri
— Onchain Lens (@OnchainLens) February 21, 2025
You might also like: Bybit’s ETH cold wallet exploited for $1.46b
Bybit employs a multi-sig structure designed by Safe to manage its ERC-20 token reserves. This wallet requires multiple team members to sign off on transactions before execution.
OxCygaar, a blockchain developer and Abstract Chain contributor, theorized that bad actors attacked each signer and somehow used malware to alter the multi-sig UI. The ramifications of this scenario are ghastly, as it means the hackers may have individually identified each signer and compromised their computers or crypto wallets.
idk how they knew the multisig signers, but this type of attack has happened in the past.requires identifying each signer and then getting them to unknowingly install malware so their multisig ui is compromised
— cygaar (@0xCygaar) February 21, 2025
Community backs Bybit, CEO sources bridge loan
ARKM tokens for any information leading to the hacker’s identification. Additionally, Safe, Bybit’s multi-sig provider, announced ongoing maintenance to strengthen safety.
NEW ARKHAM INTEL BOUNTY: BYBIT HACKWe’ve created & funded a bounty to help identify the person or organization behind today’s >$1B Bybit hack.Submissions to this bounty will be shared with the Bybit team to support their investigation.Reward: 50K ARKMBounty:… pic.twitter.com/1X3QgmRdda
— Arkham (@arkham) February 21, 2025
Also, Zhou said Bybit was working with other industry players like Binance, OKX, and KuCoin and law enforcement to reach a resolution. “We have filed a police report,” Zhou shared on the livestream.
Zhou and Shunyet Jan, Bybit’s head of derivatives, also revealed that the exchange is negotiating a bridge loan with partners to restore Ethereum withdrawals. According to Jan, the platform will offer collateral from its treasury, primarily in Bitcoin (BTC) and stablecoins. However, Zhou emphasized that Bybit can fully cover the loss, noting that the exchange manages over $20 billion in assets.
Bybit’s leadership urged the crypto community to remain patient amid platform congestion, reassuring users that other ERC-20 withdrawals and normal operations continue as usual.
Bybit is Solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss.
— Ben Zhou (@benbybit) February 21, 2025
Read more: Safe wallet pauses certain functionalities after Bybit hack