Key Highlights
- Wealthsimple has launched DEX trading for Canadian users through a self-custody wallet.
- Turnkey provides the wallet and transaction-signing infrastructure.
- The wallet supports EVM networks, Solana, and Bitcoin.
Wealthsimple has launched a self-custody wallet for decentralized exchange (DEX) trading in Canada, adding a separate onchain trading option alongside its existing centralized crypto service.
The wallet infrastructure is provided by Turnkey, which said in a September 29 case study that its embedded non-custodial wallet technology is being used for Wealthsimple’s DEX product.
Unlike Wealthsimple’s centralized crypto accounts, assets held through the DEX wallet remain under the user’s control. Wealthsimple says it cannot access those funds or sign transactions on a user’s behalf.
DEX wallet created with first trade
According to Wealthsimple’s help centre, the DEX wallet is created when a user makes their first DEX trade.
Users can fund a trade using cryptocurrency already held on Wealthsimple or their cash balance. For DEX transactions, the selected cryptocurrency is converted into USDC and transferred to the self-custody wallet.
A third-party DEX aggregator then searches for available trading routes before the transaction is executed through a decentralized exchange. Wealthsimple has not publicly identified the aggregator.
The company charges a 0.85% fee per DEX trade and says it covers network fees.
Users can send DEX tokens from the self-custody wallet to an external wallet.
Turnkey provides wallet infrastructure
Turnkey supplies the wallet and transaction-signing infrastructure behind the service.
Its technology supports EVM networks, Solana and Bitcoin, allowing Wealthsimple to offer DEX access without requiring users to connect an external wallet such as MetaMask.
Wealthsimple Director of Engineering for Crypto Shivangi Gandhi said Turnkey’s infrastructure reduced the amount of key-management technology the company needed to build internally.
“Turnkey eliminated the work of creating our own key management system, which helped us bring our DEX wallet to market considerably faster.”
Turnkey’s infrastructure also supports transaction signing and gas sponsorship.
DEX assets have different protections
Wealthsimple says assets held through the DEX wallet do not receive the same protections as assets in its centralized crypto accounts.
Tokens available through DEX trading have not necessarily gone through the same listing review used for assets supported by Wealthsimple’s centralized platform.
The company also says DEX holdings do not receive the same insurance coverage or regulatory protections associated with its centralized crypto accounts.
Wealthsimple filters certain tokens identified as malicious but does not guarantee that every potential threat will be detected.
Because the wallet is self-custodial, transactions made onchain are generally irreversible. Wealthsimple says its support team cannot recover the wallet or reverse blockchain transactions.
Centralized crypto limits do not apply
The DEX service is also subject to different limits from Wealthsimple’s centralized crypto accounts.
The company says its C$30,000 net purchase limit over 12 months for centralized crypto purchases does not apply to DEX trading.
Loss limits and related cooldown requirements for centralized accounts likewise do not apply to assets held through the DEX wallet.
Wealthsimple says losses in the DEX wallet are not counted toward those centralized-account limits.
Wealthsimple adds DEX trading to existing crypto service
Wealthsimple began offering crypto trading in Canada in 2020 after receiving regulatory relief through the Canadian Securities Administrators’ regulatory sandbox.
The DEX launch adds a self-custody model to the company’s existing custodial crypto service.
Other digital-asset platforms have also expanded their offerings in Canada. Kalshi entered the Canadian market in June with access to event contracts, while Webull Canada later added cryptocurrency trading and custody through Coinbase’s infrastructure.
For Wealthsimple users, the key difference between the two crypto services is the custody model. Centralized accounts remain under Wealthsimple’s custodial structure, while DEX assets are held in a self-custody wallet and therefore carry different limits, protections and transaction risks.
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