Developer-controlled wallets depend on a single developer-held cryptographic
key: the entity secret. Because Circle never stores it, you retain exclusive
control over your wallets and bear sole responsibility for its security.
The entity secret and ciphertext
These two terms are distinct but inseparable: the entity secret is the key
itself, and the ciphertext is the encrypted form you send in API requests.
Entity secret
The entity secret is a randomly generated 32-byte private key that authorizes
sensitive wallet operations under your Circle account.
What to know:
- Scoped to your Circle account, not to individual API keys. API keys
authenticate requests; the entity secret authorizes the wallet operations
those requests perform.
- Circle never stores a copy. Only you can authorize operations on your
developer-controlled wallets.
- Losing it without a recovery file means permanent loss of access to your
wallets and funds.
Entity secret ciphertext
The entity secret ciphertext is the encrypted form of the entity secret, passed
as entitySecretCiphertext in API request bodies.
What to know:
- Produced by encrypting the entity secret with Circle’s public RSA key before
each request. Circle decrypts it server-side to verify authenticity and
authorize the operation. For the encryption implementation, see the
entity secret sample code
on GitHub.
- Each ciphertext is single-use. Reusing one causes the request to be rejected,
which prevents replay attacks.
- When you use the
Circle Node.js SDK or
Python SDK, re-encryption
happens automatically before every call. If you make direct API calls without
an SDK, you are responsible for re-encrypting for each request.
Wallet set
A wallet set is a hierarchical deterministic (HD) wallet. Every wallet in the
set is derived from the same cryptographic root, the entity secret.
What to know:
- One entity secret backs every wallet set in your Circle account. Each wallet
set backs the wallets you create inside it.
- You can create up to 1,000 wallet sets per account, with up to 10 million
wallets in each set. For most use cases, one wallet set is enough.
- Multiple wallet sets are useful for scaling (for example, one set per tenant
or product line), but they aren’t a security boundary. The same entity secret
authorizes operations on every set.
- On EVM blockchains, wallets in the same set can share the same address across
blockchains. See
Unified wallet addressing on EVM blockchains
for how to create and derive wallets that share an address.
The recovery file
When you register your entity secret, Circle generates a recovery file tied to
that secret. The recovery file is the only mechanism for resetting your entity
secret through Circle Console if it is ever lost.
What to know:
- Without the recovery file, there is no path to recover access to your
developer-controlled wallets or the funds they hold.
- The recovery file itself is the credential. There is no separate password or
passphrase protecting it.
- A recovery file covers every wallet backed by its entity secret, including
wallets you create after the file was issued.
- A successful entity secret rotation or reset invalidates the current recovery
file and issues a new one.
Best practices
-
Store the entity secret securely. Use a secrets manager, hardware security
module (HSM), or encrypted password manager. Never commit the entity secret to
version control, include it in application configuration files, or allow it to
appear in logs.
-
Save the recovery file immediately after registration. The recovery file
can only be downloaded once, during the registration flow. If you skip this
step, you must rotate your entity secret to generate a new one. Store it in a
separate, secure location from the entity secret itself.
-
Rotate periodically. Rotating the entity secret limits exposure if it is
ever silently compromised. Rotate on a regular schedule, such as every 180
days. Rotation takes effect immediately. Any in-flight API requests using the
old entity secret will fail. Plan rotations during low-traffic periods and
reinitialize pending requests afterward. Rotate in
Circle Console.
-
Reset if compromised or lost. If your entity secret is lost or you suspect
it has been compromised, use your recovery file to reset it in
Circle Console. After a reset, the old entity
secret is invalidated immediately and a new recovery file is generated.
-
Overwrite your stored recovery file after any rotation or reset. Circle
issues a new recovery file each time, and your old one becomes invalid.
-
Group wallets into shared wallet sets, not one per user. Wallet sets are
organizational boundaries for scaling (for example, one set per tenant or
product line), not per-user containers. Creating one wallet set per user will
exhaust the 1,000-set account limit. Group users into shared sets and identify
each user with a
refId on the wallet.
If both the entity secret and the recovery file are lost, you cannot create
new developer-controlled wallets or initiate transactions from existing
wallets. There is no recovery path. Store both in separate, secure locations.