KaspaDaily recently had early access to XOWallet, a key component of the XODEX ecosystem, which positions itself as a security-first DeFi mini-app built specifically for Telegram. It is worth noting that XOWAllet is the only non-custodial Telegram wallet for Kaspa.
After testing the wallet in its beta phase, we found the design clear and intuitive, with essential features easily accessible and navigation well thought out. XOWallet is designed to manage Kaspa alongside other KRC-20 tokens and KRC-721 NFTs, making it a tailored solution for users active within the growing Kaspa ecosystem. While the wallet’s initial release is focused on core functionality, further developments—such as token swaps and NFT management—will be added in the near future.
Security Architecture
XOWallet integrates a layered approach to security. At its core is Multi-Party Computation (MPC) combined with sharding, where private keys are divided into parts (called “shards”) shared between the user’s device and Fireblocks’secure infrastructure. This ensures that neither party holds the full key, significantly reducing single points of failure. Additionally, key shards are rotated regularly, which limits the risk associated with any one piece being compromised over time.
The wallet also employs AES encryption for all stored data, with sensitive information such as key shards residing encrypted within Telegram’s cloud storage. Access to the wallet and transactions is further secured by a PIN system, augmented by rate limiting, hardware-level protections, and future plans for biometric authentication.
Non-Custodial by Design
A notable point of XOWallet is its strict non-custodial structure. User funds are held entirely on individual, segregated blockchain addresses. XOWallet has the ability to control or move assets independently. The architecture ensures that users maintain complete ownership of their wallets and funds at all times.
For users seeking full control, there is an option to export private keys, though this bypasses the additional protections provided by the MPC framework and shifts full responsibility to the user.
Resilience and Recovery
Disaster recovery mechanisms are also in place. Fireblocks maintains offline, encrypted backups of its key shares, and users are provided recovery options to retrieve their shards in extreme scenarios. Additionally, the wallet’s frontend is hosted on IPFS, making it resilient to backend outages and ensuring continued access even if primary infrastructure becomes unavailable.
Early Impressions
From our evaluation during beta testing, XOWallet appears to prioritize both security and usability. Navigation is straightforward, and the integration within Telegram offers broad device compatibility with minimal setup. The current version focuses on asset management, and we observed no major performance issues during testing.
Upcoming Features
The team has outlined plans to extend the wallet’s capabilities. Beyond the initial release—expected later today— notably future versions will introduce swaps, NFT management, and enhanced authentication methods such as 2FA and guardian mechanisms. There’s also a long-term focus on further decentralizing the architecture and open-sourcing major components to enhance transparency and community trust.
Part of the Larger XODEX Ecosystem
XOWallet is not launching in isolation. It’s closely integrated with other key tools from the XODEX ecosystem, including:
- XOAI, an institutional-grade alpha platform delivering on-chain analytics and sentiment analysis.
- XOSniper, an automated trading tool that executes trades based on AI-generated alpha, helping users react faster to market opportunities.
Together, these tools aim to offer a complete DeFi experience directly within Telegram, and the XODEX team has confirmed that support for additional networks will be added in Q2, broadening the scope beyond Kaspa.
Conclusion
XOWallet presents itself as a well-structured, security-conscious DeFi wallet tailored to the Telegram users. Its emphasis on MPC, encryption, and user ownership aligns with current industry best practices, while the roadmap suggests continued expansion and refinement. For users seeking a Telegram-native wallet with robust protections and a clear development trajectory, XOWallet offers a promising foundation.
