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How transactions are initiated and authorized depends on the wallet type you choose. The wallet type determines who controls signing (your backend or your users) and where keys live.

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Who initiates and who approves transactions

Every onchain transaction must be initiated and authorized before it is broadcast. Initiating means requesting the transaction. Authorizing means approving the signing. The following table shows who handles each and where keys are held for each wallet type. For details on how keys are secured (MPC and passkeys), see Key management.

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Transaction signing lifecycle

  1. Initiate: A client (your backend or your app) calls Circle APIs to create a transaction signing request (for example, transfer, contract call).
  2. Authorize: The party that controls the key approves the signing. In developer-controlled wallets, your backend approves using the entity secret. In user-controlled and modular wallets, your user authenticates using a confirmation UI, PIN, or biometrics, and approves in your app.
  3. Sign: Circle (with MPC or passkey participation) produces the signature.
  4. Broadcast: The signed transaction is sent to the blockchain. For supported blockchains, Circle can handle broadcasting, or you can choose to use the signing APIs with your own node.
Submitted vs finalizedSending a transaction to the blockchain (submitted) and the blockchain processing it to finality (complete) are two separate events. Circle’s API response does not indicate finality. State changes (for example, sent, confirmed, failed) are delivered asynchronously. Set up Webhook notifications to receive them.