How Droppp supports a global digital collectibles marketplace with Turnkey

Learn how this leading digital collectibles platform facilitates thousands of onchain transactions with user-friendly embedded wallets and session keys.

• 4 new user markets accessed
• Substantial reduction in service fees
• Significant increase in onboarded wallets

"We needed a non-custodial wallet solution that delivered a seamless user experience while ensuring regulatory compliance. Turnkey checked each of those boxes.” — Nate Denning, SVP of Digital Growth at Funko

About

Droppp is a digital collectibles platform that blends blockchain technology with mainstream collecting experiences. It is a subsidiary of Funko, a global leader in pop culture merchandise valued at over $600 million, and the company behind the iconic Funko Pop! figures.

Challenge: Delivering accessible, non-custodial wallet solutions to users

As the leading platform for Funko’s digital collectibles, Droppp processes a significant volume of onchain transactions per day, particularly during major releases. For instance, its 'Avatar Legends Series 2' drop saw over 8,400 sales, generating nearly 159,000 USDC in total volume. Similarly, 'Freddy’s Dark Valentine Series 1' recorded over 100,000 USDC in transaction volume. 

To facilitate this steady stream of transactions, Droppp initially partnered with a custodial wallet provider. When that provider unexpectedly discontinued its services, it wasn’t just a disruption; it was an opportunity. Droppp had long envisioned a more refined, non-custodial solution that could offer greater flexibility and long-term scalability.

Droppp’s top priorities for its new partner were:

• Frictionless user experiences: Because Droppp operates at the intersection of crypto and physical collectibles, its non-technical users needed an experience that felt familiar and seamless. That meant hiding the complexities of crypto – no seed phrases, no confusing wallet setups – and giving Droppp full control over how wallets are created, how users log in, and how transactions are approved.
• Robust security and customization: Droppp needed to define exactly who could access wallets, what actions they could perform, and under what conditions—all without disrupting the smooth, app-like experience its users expect.
• Simplified onboarding and limited downtime: With thousands of transactions happening daily, the transition had to be seamless, ensuring no interruptions to user access or trading activity. Migrations like this often risk downtime or disruption, but Droppp couldn’t afford to interrupt user access or trading activity even briefly.
• Adherence to strict compliance requirements: Droppp needed a wallet solution that passed internal legal reviews, external counsel checks, and regulatory audits before going live.

Droppp explored multiple non-custodial wallet solutions but found most were too complex for non-crypto-native users. Once the team evaluated Turnkey, they found it to be a perfect fit, offering the flexibility to tailor the user experience, strong compliance features, and a smooth migration process.

"We weren’t just looking for a wallet solution; we wanted the freedom to design an experience that felt familiar and effortless to our users, not one that forced them to navigate a crypto-heavy experience.”

Solution: Turnkey’s flexible and user-friendly wallet infrastructure 

Droppp integrated Turnkey to empower its users with seamless in-app wallets and robust session keys for frictionless trading. The onboarding was smooth, the team was responsive, and the migration was completed with 100% uptime. Turnkey helped Droppp achieve:

• A seamless user experience: With passkey-based authentication, email backups, and session-based approvals, Turnkey lets users manage wallets and sign transactions without ever having to interact with private keys. Session-based approvals reduce friction, enabling users to auto-sign transactions for a set period instead of manually approving every action.
• Fine-grained control: Through policy-based access, Turnkey helps Droppp define who can access wallets, what actions they can take, and under what conditions, while maintaining a smooth, intuitive interface. Turnkey’s flexible API helps Droppp maintain the security and customization it needs while machine wallets handle fee payments.
• A smooth migration: While migrating to Turnkey, Droppp experienced zero user-facing downtime, which enabled them to switch providers without disrupting daily transaction volume or trading activity.
• Compliance: Turnkey helped Droppp meet strict legal and compliance standards by providing a non-custodial architecture that passed the platform’s internal reviews, external counsel scrutiny, and audit requirements.

The best part? Shifting from custodial to non-custodial wallets with Turnkey both reduced service fees and expanded Droppp's reach into previously restricted jurisdictions. With access to crucial new markets, Droppp is primed to capture an even greater share of the flourishing digital collectibles market.

"Turnkey delivered the perfect balance of security, usability, and compliance. It gives us the foundation we need to scale our platform and reach more users without added complexity."

Results: Expanded reach, reduced service fees, and a foundation for increased adoption

With Turnkey powering its wallet infrastructure, Droppp has secured a scalable, compliant foundation for its future growth.

And the results speak for themselves:

• 4 new user markets accessed
• Substantial reduction in service fees
• Significant increase in onboarded wallets

As Turnkey continues to evolve, Droppp is eager to explore new features that align with its goals for security, scalability, and a frictionless user experience.

“With Turnkey, we were finally able to serve New York and three other states, which wasn’t possible before due to regulatory restrictions. That expansion led to a significant increase in onboarded wallets, opening up our platform to a much larger audience.”

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