Are you trying to establish your brand as a force to be reckoned with in the Web3 market?
For most businesses like yours, trying to do the same, the question of how best to approach DeFi Wallet Development is one that’s often asked.
Lately, we have been seeing major brands like Bitget launch their branded Web3 wallets using White-Label Crypto DeFi Wallet solutions, and it has got us wondering why they aren’t building their own solutions from scratch. After all, they have enough capital to hire the best blockchain engineers and compliance specialists.
To satisfy our (and your) curiosity, we’ve decided to explore why major brands approach DeFi wallet development using White Label solutions.
In doing so, this article discusses what a White Label DeFi Wallet is, what Bitget is, and some major reasons why brands like Bitget use white label solutions, as well as a deeper look into Bitget’s strategy.
Let’s get into it!
What is a White Label DeFi Wallet?
This is a customizable and ready-to-use digital wallet solution that brands can simply purchase, rebrand, and deploy as their native solution, eliminating the need to build any blockchain infrastructure from scratch.
It’s as simple as saying that if your business wanted to enter the web3 wallet industry today, you could simply reach out to a reputable crypto development company like Debut Infotech Pvt Ltd. In response, their experts will provide you with a ready-to-deploy whitelabel DeFi wallet, already equipped with essential security features, an intuitive UI/UX, and advanced DeFi functionalities, allowing you to launch quickly and efficiently.
These solutions are built to help end users store, send, and interact with digital assets under a brand’s identity. Most of the time, they are often non-custodial in nature. As a result, they are often equipped with advanced technical features, such as Multi-Party Computation (MPC) and Account Abstraction (AA), to eliminate the need for seed phrases.
For a more comprehensive perspective, this is the approach that many major brands, such as Bitget, use to launch their wallet solutions and enter the market early. Shortly, we’ll examine why they do this, but for now, let’s get some perspective on what Bitget is.
What is Bitget?
If you’re a crypto-savvy individual, then you have definitely heard the brand name Bitget at some point. With a customer base spanning 20 million users globally across over 100 countries, Bitget is one of the world’s leading cryptocurrency exchanges. However, Bitget also does more than just being a trading platform, as it also plays a major role in the crypto industry as an innovator that bridges the gap between Centralized Finance and Decentralized Finance (DeFi)
Wondering why we’re trying to learn why a brand like Bitget is using a White Label solution?
Well, in 2023, Bitget made a major move into the Web3 space with a USD 100 million investment that involved acquiring a controlling stake in a multi-chain wallet, formerly known as BitKeep. After a few rebranding efforts, the wallet is now known as The Bitget Wallet.
See where this is headed?
As of today, Bitget has maintained a comprehensive ecosystem approach, featuring a single brand name that encompasses an exchange, a wallet, and a Web3 gateway platform. Consequently, Bitget users can trade on the exchange, access DeFi applications, NFTs, and token swaps all through the wallet.
And how did Bitget achieve this?
By simply buying, integrating, and rebranding a wallet solution rather than building one from scratch!
So, why not just build from scratch?
Find out in the next section as we explore some business-driven reasons why White Label Web 3 wallet solutions are the way to go in the Web 3 space.
Why do Major Brands Prefer White-Label Web 3 Wallet Solutions to Building from Scratch?
When launching a Web3 wallet, brands often face a critical decision: should they build the wallet from scratch or adopt a white-label solution?
For brands that opt for the latter, the following are some key reasons influencing their decision.
1. Faster Time-to-Market
It typically takes approximately 12 to 18 months to develop a fully functional and secure multi-chain wallet in-house. On the other hand, a white-label wallet can be ready for launch in a few weeks. Considering the fact that the crypto and Web 3 industries are constantly evolving, most brands are often motivated to enter the market quickly; hence, they choose white label crypto wallet solutions.
2. Reduced Development Cost and Risks
Apart from the fact that it takes a longer time to build a Web 3 wallet from scratch, there are also numerous intricacies involved. You would need to hire blockchain engineers, auditors, and compliance officers to ensure that everything runs smoothly. Not only is this expensive, but it also carries a significant amount of risk. I mean, what if they don’t get it right on the first try?
But with a white label solution, the white label providers generally spread the cost across multiple clients, thus making enterprise-grade technology affordable. Additionally, white label solutions are often tested and trusted because other brands have already utilized them.
3. Seamless User Experience
One of the major risks associated with building from scratch is that the final product may not be quite polished, especially on the first try. There could be clunky onboarding processes and other technological defects. Mainstream customers don’t particularly enjoy those.
On the other hand, white-label wallets utilize MPC or account abstraction to facilitate simple login methods and provide a better user experience. For instance, the Bitget Wallet was able to lower the barrier for first-time Web 3 users by introducing Telegram logins.
4. Out-of-the-Box Multichain Compatibility
Again, it can be technically complex for an in-house team to accurately execute a Web 3 wallet that supports multiple blockchains such as Ethereum, BNB Chain, Polygon, and Solana. However, White Label solution providers like Debut Infotech Pvt Ltd make it a point of duty to make this functionality built-in so that customers can explore the ecosystem freely.
5. Built-in Compliance and Security Features
It requires constant monitoring and updates to navigate regulations such as KYC/AML and the Travel Rule. With White Label solutions, these elements are embedded from the outset and continually updated as changes arise, thereby reducing the business’s legal exposure.
6. Custom Ownership and Brand Control
Unlike using third-party wallets, white-label solutions keep engagement, data, and loyalty within the brand’s ecosystem. That means stronger relationships and less risk of customer defection.
Case Study: What is Bitget’s Wallet Strategy?
We mentioned earlier that Bitget is one of the world’s leading cryptocurrency exchanges. The brand was able to reach this height by positioning not just as a trading platform but as a comprehensive CeFi-DeFi bridge. And instead of building a comprehensive platform that the world be able to deliver all these features, Bitget chose to acquire a white label solution and rebrand it as its wallet solution.
The following are the core components of Bitget’s strategy:
- A full ecosystem integration: Bitget initially offered only crypto trading services. However, the platform transitioned into extensive trading services by embedding the wallet into its centralized app via the Web3 tab. As such, users can now trade, swap tokens, and explore other Web3 functionalities directly on the Bitget platform.
- Frictionless onboarding: By integrating all these different product offerings on a single platform, Bitget makes it incredibly easy for new users to get started, regardless of their experience with crypto or Web3. Seedless login options, such as Telegram Authentication functionality powered by Multi-Party Computation (MPC), also play a major role in this frictionless onboarding experience.
- Security & Trust: The wallet benefits from Bitget’s comprehensive infrastructure, including robust fund protection programs and regular audits, which reassure users concerned about the risks associated with DeFi.
- Ecosystem Expansion: Through initiatives like OmniConnect, Bitget has provided developers with SDKs to integrate its wallet into dApps, thereby reinforcing its role as a gateway to the Web3 ecosystem.
As a result, Bitget has been able to expand its user base across various user classes, including traders, DeFi users, and NFT enthusiasts. At the same time, the white-label solution has enabled the company to retain customers and maintain their engagement.
Wondering what the takeaway from this case study is for you as an executive or decision maker?
Even giant brands with sufficient capital recognize the value in utilizing White Label solutions. They’ve also achieved a greater ROI by buying, branding, and integrating White Label infrastructures instead of building them from scratch.
Conclusion: An Executive’s Decision-making Matrix
Still caught in the middle about whether you should build from scratch or use a white label solution?
Well, the “correct decision” for you depends on what your brand is optimizing for. While building in-house gives you a greater level of control over the kind of DeFi Wallet you’re entering the market with, you might have to sacrifice some essential business factors like cost, time-to-market, capital, and risk. On the other hand, buying a White Label Wallet offers speed and resilience, but it depends on the kind of partner you choose.
Here are some key decision-making factors to bear in mind:
- Time to market: Can you wait for 12 – 18 months or do you want to start in a matter of weeks?
- Budget and resources: Would predictable OpEx benefit you more, or can you justify expensive upfront CapEx?
- Security and compliance: Do you possess the internal know-how to adhere to changing international standards?
- User experience: Do your clients anticipate easy logins or would they embrace a sophisticated wallet?
- Strategic control: Is a customizable partnership adequate, or is complete ownership worth the continuous overhead?
If you’re leaning towards getting a White Label solution, then you need to partner with a DeFi Wallet Development company like Debut Infotech Pvt Ltd, which has extensive experience and technical expertise to deliver the kind of solutions your customers need.
