Crypto glossary
Passkey wallet
A passkey wallet uses a device passkey (WebAuthn), unlocked with a fingerprint, face or PIN, to authorize transactions instead of a seed phrase.
Passkeys are the login standard behind Face ID and fingerprint sign-ins on many websites. The device creates a key pair whose private half stays in its secure hardware; biometrics or a PIN unlock it to sign a challenge. A passkey wallet uses that signature to control a smart contract account, so the user creates a wallet and approves payments the same way they unlock their phone.
There is a technical twist: passkeys use the P-256 curve, not the secp256k1 curve of Ethereum accounts. Smart accounts built with account abstraction verify these signatures in contract code, and several networks have added cheaper on-chain verification for P-256. The result is onboarding without twelve words to write down, which appeals to consumer apps and payments.
Passkeys are often synced through Apple, Google or password-manager accounts. That makes recovery easier, but it also means the security of the wallet depends partly on those accounts and on the provider not locking the user out. Losing every device and the sync account can lock funds unless the wallet adds social recovery or a backup signer.
Example
A new user creates a wallet in a payments app by tapping Face ID once; the passkey becomes the signer of a smart account, and each later transfer is approved with the same gesture.