Account Funding

Introduction

Account Funding enables Platforms to allow their end customers to fund their account using crypto or stablecoins. You can configure Account Funding so that deposits are automatically converted to fiat, allowing Platforms to instantly recognize a credit to the customer's fiat balance. This is an alternative funding mechanism that can live side-by-side next to card, wire, ACH, etc.

Use Cases

• Investment platforms: Platforms that allow other businesses to fundraise or ones that allow their end customers to contribute to investment funds can leverage the Account Funding product to provide an additional funding option.
• Trading account funding: CFD or equity trading platforms can offer an alternative funding method that sits side-by-side next to traditional methods such as card, bank transfer, etc.
• Neobanks and digital wallets: Money apps can increase assets on the platform, thus increasing overall engagement by activating this product.
• Any platform that requires users to fund their account: This new funding method is applicable to any platform with end retail customers who need to fund their account in order to trade, invest, or subsequently purchase a good or service.

Key Features

• Available anytime: 24/7/365 instant account funding
• Lightning fast: Transactions on-chain settle quickly, allowing for instant account balance updates
• Eliminate chargebacks: Irreversible transactions remove chargeback risk
• Globally accessible: Onboard customers and no more complexity with managing many local fiat payment rails
• Cheaper: Transfer fees are cheaper than ACH, Card, Wire, and Swift transactions

Integration Details

Setup

It's important to note that in order to use the Account Funding product, the End Customer must be onboarded as a zerohash customer. This can be done in 1 of 3 ways:

• API (Reliance): approved Platforms use a KYC solution of their own and pass zerohash the results of each verification via POST /participants/customers/new.
• API (KYC as a Service) [coming soon and individually based on compliance approval]: Platforms can use the zerohash KYC product, while owning the front end themselves.
• SDK (KYC as a Service): Platforms can use the zerohash KYC product, while leveraging the zerohash Onboarding SDK.

You can then couple your preferred onboarding solution with either:

• API: leverage your own front end, using zerohash's Account Funding API.
• SDK: embed the zerohash Account Funding SDK.

Configurations

After you've chosen your setup, you can make some decisions on how your integration is configured:

Ledgering Options

Option 1: After the crypto or stablecoin is converted to fiat, the USD is automatically transferred to the Platform on the zerohash ledger. So the flow of funds is:

Option 2: After the crypto or stablecoin is converted to fiat, the USD is not automatically transferred to the Platform on the zerohash ledger and instead sits in the End Customer's account (not recommended for Platform's using the Account Funding SDK). From there, the platform can initiate a fiat withdraw directly from the End Customer's account. So the flow of funds is:

Fees

Option 1: Platform incurs zerohash fees. In this case, the End Customer will not be charged any fee upon conversion (issuer fees may still apply).

Option 2: End Customer incurs the fee. This option allows the Platform to pass along product usage costs. The fee will be taken upon the conversion

Maximum and Minimum Deposits

• Similar to traditional funding methods, Platforms have the ability to tell zerohash the minimum and maximum deposit amounts to enforce. On the SDK, these values will be presented on the front end for the End Customer's awareness.
• By default, each platform will inherit a maximum threshold of $250,000 per deposit and $1 minimum threshold.

Company logo and brand name (SDK only)

In order to enable maximum customization and to match the look and feel of your native application, you can customize:

• the logo that's displayed to the customer; and,
• company's brand name in text; and,
• color scheme.

Example:

Email Receipts

Email receipts must be delivered to End Customer for every Account Funding transaction that is processed by zerohash. If a Platform is not able to meet this requirement, zerohash will provide this as a service.

Supported Assets

Here is the list of supported assets for this product (which also can be retrieved via GET /assets where fund_enabled = true)

Webhooks

We offer webhooks specific to this product. See details here: Fund Webhook

Platform Settlement

General

Platforms will receive a once a day batch fiat settlement. Settlement schedule:

During US holidays, Platforms should expect their settlements to arrive by EOD on the next business day. For example, for the August 30th 2024 session, the settlement will arrive by Tuesday EOD (because Monday was Labor Day)