diff --git a/client/components/settings/WalletVerification.tsx b/client/components/settings/WalletVerification.tsx
new file mode 100644
index 00000000..b4a777f1
--- /dev/null
+++ b/client/components/settings/WalletVerification.tsx
@@ -0,0 +1,280 @@
+import { useState, useEffect } from "react";
+import {
+  Card,
+  CardContent,
+  CardDescription,
+  CardHeader,
+  CardTitle,
+} from "@/components/ui/card";
+import { Button } from "@/components/ui/button";
+import { Input } from "@/components/ui/input";
+import { Label } from "@/components/ui/label";
+import { Badge } from "@/components/ui/badge";
+import { CheckCircle, AlertCircle, Copy, Unlink } from "lucide-react";
+import { useAuth } from "@/contexts/AuthContext";
+import { aethexToast } from "@/lib/aethex-toast";
+
+const API_BASE = import.meta.env.VITE_API_BASE || "";
+
+interface WalletVerificationProps {
+  onWalletUpdated?: (walletAddress: string | null) => void;
+}
+
+const isValidEthereumAddress = (address: string): boolean => {
+  return /^0x[a-fA-F0-9]{40}$/.test(address);
+};
+
+const formatWalletAddress = (address: string): string => {
+  if (!isValidEthereumAddress(address)) return address;
+  return `${address.slice(0, 6)}...${address.slice(-4)}`;
+};
+
+export const WalletVerification = ({
+  onWalletUpdated,
+}: WalletVerificationProps) => {
+  const { user, profile } = useAuth();
+  const [walletInput, setWalletInput] = useState("");
+  const [connectedWallet, setConnectedWallet] = useState<string | null>(null);
+  const [isLoading, setIsLoading] = useState(false);
+  const [isCopied, setIsCopied] = useState(false);
+
+  useEffect(() => {
+    // Initialize with existing wallet address if available
+    if (profile?.wallet_address) {
+      setConnectedWallet(profile.wallet_address);
+    }
+  }, [profile?.wallet_address]);
+
+  const handleConnect = async () => {
+    if (!walletInput.trim()) {
+      aethexToast.warning("Please enter a wallet address");
+      return;
+    }
+
+    const normalized = walletInput.trim().toLowerCase();
+    if (!isValidEthereumAddress(normalized)) {
+      aethexToast.warning(
+        "Invalid Ethereum address. Must be 0x followed by 40 hexadecimal characters."
+      );
+      return;
+    }
+
+    if (!user?.id) {
+      aethexToast.error("User not authenticated");
+      return;
+    }
+
+    setIsLoading(true);
+    try {
+      const response = await fetch(`${API_BASE}/api/profile/wallet-verify`, {
+        method: "POST",
+        headers: { "Content-Type": "application/json" },
+        body: JSON.stringify({
+          user_id: user.id,
+          wallet_address: normalized,
+        }),
+      });
+
+      if (!response.ok) {
+        const errorData = await response.json().catch(() => ({}));
+        throw new Error(
+          errorData.error || `HTTP ${response.status}: Failed to connect wallet`
+        );
+      }
+
+      const data = await response.json();
+      setConnectedWallet(normalized);
+      setWalletInput("");
+      aethexToast.success("✅ Wallet connected successfully!");
+
+      if (onWalletUpdated) {
+        onWalletUpdated(normalized);
+      }
+    } catch (error: any) {
+      console.error("[Wallet Verification] Error:", error?.message);
+      aethexToast.error(
+        error?.message || "Failed to connect wallet. Please try again."
+      );
+    } finally {
+      setIsLoading(false);
+    }
+  };
+
+  const handleDisconnect = async () => {
+    if (!user?.id || !connectedWallet) return;
+
+    setIsLoading(true);
+    try {
+      const response = await fetch(`${API_BASE}/api/profile/wallet-verify`, {
+        method: "DELETE",
+        headers: { "Content-Type": "application/json" },
+        body: JSON.stringify({
+          user_id: user.id,
+        }),
+      });
+
+      if (!response.ok) {
+        const errorData = await response.json().catch(() => ({}));
+        throw new Error(
+          errorData.error || `HTTP ${response.status}: Failed to disconnect wallet`
+        );
+      }
+
+      setConnectedWallet(null);
+      aethexToast.success("Wallet disconnected");
+
+      if (onWalletUpdated) {
+        onWalletUpdated(null);
+      }
+    } catch (error: any) {
+      console.error("[Wallet Verification] Error:", error?.message);
+      aethexToast.error(
+        error?.message || "Failed to disconnect wallet. Please try again."
+      );
+    } finally {
+      setIsLoading(false);
+    }
+  };
+
+  const handleCopyAddress = () => {
+    if (connectedWallet) {
+      navigator.clipboard.writeText(connectedWallet);
+      setIsCopied(true);
+      setTimeout(() => setIsCopied(false), 2000);
+    }
+  };
+
+  return (
+    <Card className="border-border/40 bg-background/50 backdrop-blur-sm">
+      <CardHeader>
+        <CardTitle className="flex items-center gap-2">
+          <span>🔐 Wallet Verification</span>
+          {connectedWallet && (
+            <Badge variant="outline" className="ml-auto border-emerald-500/30 bg-emerald-500/10 text-emerald-300">
+              <CheckCircle className="mr-1 h-3 w-3" />
+              Connected
+            </Badge>
+          )}
+        </CardTitle>
+        <CardDescription>
+          Connect your Ethereum wallet to enable Web3 identity verification.
+          This wallet address will be used to verify ownership of your{" "}
+          <code className="rounded bg-slate-800 px-1 text-xs">.aethex</code> TLD
+          once the Axiom Protocol is live.
+        </CardDescription>
+      </CardHeader>
+      <CardContent className="space-y-6">
+        {connectedWallet ? (
+          <div className="space-y-4">
+            <div className="rounded-lg border border-emerald-500/30 bg-emerald-500/5 p-4">
+              <div className="mb-2 text-xs font-semibold text-muted-foreground">
+                Connected Wallet
+              </div>
+              <div className="flex items-center gap-2">
+                <code className="flex-1 rounded bg-slate-800 px-3 py-2 text-sm font-mono text-emerald-300">
+                  {formatWalletAddress(connectedWallet)}
+                </code>
+                <Button
+                  size="sm"
+                  variant="outline"
+                  onClick={handleCopyAddress}
+                  className="border-border/60"
+                >
+                  <Copy className="h-4 w-4" />
+                </Button>
+              </div>
+              {isCopied && (
+                <p className="mt-2 text-xs text-emerald-300">
+                  ✓ Copied to clipboard
+                </p>
+              )}
+            </div>
+
+            <div className="space-y-2 rounded-lg border border-slate-500/20 bg-slate-500/5 p-4">
+              <h4 className="text-sm font-semibold text-foreground">
+                What's this for?
+              </h4>
+              <ul className="space-y-1 text-xs text-muted-foreground">
+                <li>
+                  ✓ Proves you're the owner of this wallet (Web3 identity)
+                </li>
+                <li>
+                  ✓ Will unlock your <code className="text-aethex-300">.aethex</code> TLD
+                  verification when the Protocol launches
+                </li>
+                <li>✓ No smart contracts or gas fees required right now</li>
+                <li>✓ Your wallet address is private and only visible to you</li>
+              </ul>
+            </div>
+
+            <Button
+              variant="outline"
+              onClick={handleDisconnect}
+              disabled={isLoading}
+              className="w-full border-red-500/30 text-red-400 hover:bg-red-500/10"
+            >
+              <Unlink className="mr-2 h-4 w-4" />
+              Disconnect Wallet
+            </Button>
+          </div>
+        ) : (
+          <div className="space-y-4">
+            <div className="rounded-lg border border-slate-500/20 bg-slate-500/5 p-4">
+              <div className="flex items-start gap-2">
+                <AlertCircle className="mt-0.5 h-4 w-4 flex-shrink-0 text-yellow-500" />
+                <div className="text-sm text-muted-foreground">
+                  <p className="font-semibold">No wallet connected yet.</p>
+                  <p className="mt-1">
+                    Enter your Ethereum wallet address below to verify your
+                    identity.
+                  </p>
+                </div>
+              </div>
+            </div>
+
+            <div className="space-y-3">
+              <div>
+                <Label htmlFor="wallet-address" className="text-sm font-medium">
+                  Ethereum Wallet Address
+                </Label>
+                <Input
+                  id="wallet-address"
+                  placeholder="0x..."
+                  value={walletInput}
+                  onChange={(e) => setWalletInput(e.target.value)}
+                  disabled={isLoading}
+                  className="mt-2 font-mono text-sm"
+                />
+                <p className="mt-2 text-xs text-muted-foreground">
+                  Format: 0x followed by 40 hexadecimal characters
+                </p>
+              </div>
+
+              <Button
+                onClick={handleConnect}
+                disabled={isLoading || !walletInput.trim()}
+                className="w-full bg-gradient-to-r from-aethex-500 to-neon-blue"
+              >
+                {isLoading ? "Connecting..." : "Connect Wallet"}
+              </Button>
+            </div>
+
+            <div className="text-xs text-muted-foreground">
+              <p className="font-semibold">💡 How it works:</p>
+              <ol className="mt-1 space-y-1 pl-4">
+                <li>1. Enter your wallet address</li>
+                <li>2. We save it securely to your profile</li>
+                <li>
+                  3. When Phase 2 launches, we'll verify you own the .aethex TLD
+                  registered to this wallet
+                </li>
+              </ol>
+            </div>
+          </div>
+        )}
+      </CardContent>
+    </Card>
+  );
+};
+
+export default WalletVerification;