#1055 Implement custodial wallet creation for onboarding new users

[vic-Gray]

Area: backend · Effort: L

What: Allow new users without a Stellar wallet to create a custodial wallet managed by the platform, lowering the barrier to entry for crypto beginners.

Why: Requiring users to set up a Stellar wallet before depositing excludes the majority of potential African retail users who are crypto newcomers.

Acceptance Criteria:

• New users can opt into a custodial wallet during registration
• A Stellar account is created and the keypair is encrypted with the user's password-derived key
• Users can export their private key at any time to self-custody
• Custodial wallets are clearly distinguished from self-custody wallets in the UI
• Security model is documented in docs/custodial-wallet-security.md

Hints:

• Use BIP32 HD wallet derivation with a platform seed and user-specific path
• Encrypt private keys with AES-256-GCM using a key derived from the user's password via Argon2
• backend/src/wallets/custodial-wallet.service.ts

[almuslavish]

@almuslavish has applied to work on this issue as part of the Stellar Wave Program's 6th wave.

I would like to work on this issue pls

ℹ️ Repo Maintainers: To accept this application, review their application or assign @almuslavish to this issue.

[Bigmehelen]

@Bigmehelen has applied to work on this issue as part of the Stellar Wave Program's 6th wave.

I would like to work on this issue, please assign me to this issue

ℹ️ Repo Maintainers: To accept this application, review their application or assign @Bigmehelen to this issue.

[drips-wave]

Congratulations, @Bigmehelen! 🎉 Your application was accepted by the repo's maintainers, and the issue is due on June 30, 2026.

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