Internal Account Functionality

Internally all our accounts are nodes with ledgering capabilities. That is, they are points within a network that can keep track of transactions (transmissions) they receive or originate.

When we receive a POST request to create an account, our core (assuming KYC has been verified) will immediately open a bank account at one of Synapse's bank partners. We can do so because we are an agent of these banks. Funds will be stored in these accounts, and transactions will be issued and received from them.

Ledgering

Our systems ledger the funds present in each account. Synapse's bank partners recognize our ledger as their definitive ledger, setting forth the title, ownership, and content of each Account. Due to this arrangement, our system doesn't have to be reconciled against Synapse's bank partners, who oversee and have access to our ledger at all times.

Transaction Nodes

All transactions have a beginning and an endpoint.

• For internal transfers, they will start from the node that originates the transmission and end at the node that receives it.
• For transactions that originate or terminate outside of Synapse (e.g. when we receive a Wire Transfer), we will create special nodes to keep the information and the ledger (from our perspective) of the destination of those funds.
  • These nodes are not "true accounts" but a representation of external accounts on our system.