Custodial and Non-Custodial Wallets in Kolo
Kolo offers two different wallet types:
Wallet type | Main purpose |
Custodial Wallet | Everyday payments, card usage, regulated operations |
Non-Custodial Wallet | Web3 and direct on-chain activity, wallet for TON Blockchain |
Each wallet type works differently and gives you a different level of control.
Custodial Wallet (Kolo Wallet)
The custodial wallet is the default wallet used for Kolo’s core financial services:
Card payments
Cashback
Crypto deposits and withdrawals
Fiat-related operations
Regulated services
And many more...
How it works
With a custodial wallet:
Kolo securely store digital assets on your behalf.
Assets are held within Kolo’s regulated infrastructure.
Identity verification (KYC) and compliance procedures apply.
Account recovery is possible through verification.
This wallet is designed for everyday payments and ease of use.
Non-Custodial Wallet (Web3 Wallet)
The non-custodial wallet is designed for direct blockchain interaction.
In Kolo, the non-custodial wallet is primarily used for the TON blockchain.
With this wallet:
You control the private keys.
You are responsible for access credentials and backups.
All transactions are processed directly on the blockchain.
Network (gas) fees apply.
Important Characteristics
“Your keys, your control”
Web3 and blockchain interaction
Direct on-chain transactions
User-managed access responsibility
Optional backup mechanisms (if enabled in the app)
⚠️ Important: Kolo cannot access, freeze, or recover funds in your non-custodial wallet if you lose access credentials.
Key Differences
Custodial Wallet | Non-Custodial Wallet |
Kolo manages private keys | You manage private keys |
Account recovery possible | No recovery if access is lost |
Used for card & regulated services | Used for Web3 & on-chain interaction |
Compliance procedures apply | Direct blockchain responsibility |
Card Payments and Wallet Types
Card can be issued only within custodial wallet.
Funds held in the non-custodial wallet cannot be used directly for card payments.
To use funds for card spending, they must be available in the custodial wallet.
⚠️ Important: If you want to use your balance for card payments, make sure the funds are in your custodial wallet, not your non-custodial wallet.
Gas & Network Fees
For non-custodial wallet transactions:
Gas fees are determined by the blockchain network.
Fees are paid as part of the transaction.
Gas costs may vary depending on network congestion.
Custodial wallet withdrawals may also include applicable network or processing fees as shown before confirmation.
Regulatory Considerations
Kolo’s custodial wallet is part of its regulated infrastructure, so compliance requirements apply to custodial services.
The non-custodial wallet works differently:
transactions are executed directly on-chain
wallet access is controlled by the user
security responsibility is primarily on the user side
Which Wallet Should I Use?
For everyday payments and card usage → Custodial wallet
For Web3 interaction and on-chain activity → Non-custodial wallet
If you are unsure which wallet type applies to your transaction, contact support before sending funds.
FAQ
What is the main difference between custodial and non-custodial wallets?
What is the main difference between custodial and non-custodial wallets?
The main difference is who controls the private keys. In a custodial wallet, Kolo manages them for you. In a non-custodial wallet, you manage them yourself.
Can I use my non-custodial wallet balance for card payments?
Can I use my non-custodial wallet balance for card payments?
No. Card payments work only with funds available in the custodial wallet.
What happens if I lose access to my non-custodial wallet?
What happens if I lose access to my non-custodial wallet?
If access credentials are lost, recovery may not be possible. Kolo cannot recover or restore access to a non-custodial wallet in the same way as a custodial account.
Which blockchain is supported for the non-custodial wallet in Kolo?
Which blockchain is supported for the non-custodial wallet in Kolo?
Kolo’s non-custodial wallet is primarily designed for the TON blockchain.
Does KYC apply to both wallet types?
Does KYC apply to both wallet types?
KYC and compliance procedures apply to Kolo’s custodial services. Non-custodial wallet usage follows a different model, where the user controls access and on-chain activity directly.
Need Help?
If you are not sure which wallet type applies to your transfer or whether your funds will be available for card payments, our support team will be happy to help.