Fintech Giant Plaid Jumps into Web3

Plaid, a leading provider of software that allows users to link their bank accounts and credit cards with applications like Venmo, has jumped into Web3 with the introduction of technology that streamlines the integration of decentralized apps (dApps) and self-custody crypto wallets.

Plaid’s legacy product “makes it really easy for developers to build and connect to thousands and thousands of bank accounts all over the world,” Keith Grose, the head of Plaid’s UK operations and one of the leads on its nascent crypto expansion, said. “And we’re basically extending that now into the Web3 ecosystem.”

At present, in order for a dApp to connect with a crypto wallet like MetaMask, developers must build that integration themselves. Plaid’s newest product, Wallet Onboard, aims to make their lives easier by offering a single software development kit (SDK) with more than 300 crypto wallet integrations built-in.

“For users, they’re guaranteed to find their wallet provider,” Grose said.

DApps already using Wallet Onboard include Zerion, Donut and 2.5 Intelligence.

Although it acts as a middleman, Plaid says it does not keep a record of wallet addresses.

“Our goal here is not to remember who the user is or track their wallet address,” Grose said. “It’s just to verify that this user has control over this wallet and then create the connection to the dApp itself.”

Plaid says it also hopes to boost users’ confidence when navigating Web3. DApps that use Plaid must undergo know-your-business verification. Eventually, Plaid also hopes to offer a smart contract check to verify the program the customer is accessing is legitimate.

“We serve as this back-end infrastructure, part of the onboarding experience,” Grose said, “something that should blend into the background but also create a sense of safety in the same way as seeing the lock symbol in your browser tells you ‘Okay, I’m protected.’”