GuidesAPI RefFAQsBlog
Guides
StatusSupport

Crypto Accounts (Wallet)

CRYPTO-US

Suggest Edits

📘

Product in Closed Beta

This new feature is currently being tested and improved. We prefer to keep some details about it private, as they are subject to change. Due the nascency of closed beta offerings, we cannot provide the same SLA guarantees of our released features.

Introduction

Synapse offers custodial Crypto Wallets to allow users to buy, sell, and hold supported digital currencies (i.e. cryptocurrencies). Buy and sell orders will execute via an integration with a digital currency exchange. Digital currencies are held in trust at the Synapse partner bank that ledgers the Crypto Wallet for end-users.

What is a cryptocurrency wallet?

A Synapse cryptocurrency wallet is a custody account that can be funded via USD. By initiating a transaction to the CRYPTO-US node with a valid currency, funds are instantly converted and stored. For withdrawals, users just need to create a transaction from the wallet to “cash out” at current market rates. Unlike other crypto wallets, Crypto Wallets with Synapse are considered "closed loop," meaning that digital currency assets cannot be directly transferred into or out of our Crypto Wallets (i.e. users cannot fund their wallets with their existing crypto nor send crypto assets they hold to outside wallets).

Open a Crypto Wallet

After you create a user and add the necessary KYC (as listed on your Spec Sheet), you are ready to open a CRYPTO-US account. Please refer to Create Crypto Wallet for more details.

Steps to Initiate Crypto Transactions

  1. Make sure your controls (what you are allowed to do in our system) allow for ACH transactions.
  2. Have an account owned by a user with SEND-AND-RECEIVE permissions and who is not a match in one of our sanctions lists click here for our guide on how to check for this.
  3. If you are creating a transaction from a supported deposit account (e.g. IC-DEPOSIT-US or CUSTODY-US) to a Crypto Wallet, or vice versa, you will need to supply extra.asset with a supported cryptocurrency (e.g. BTC or ETH).
    3. If creating a transaction from a deposit account to a Crypto Wallet with extra.asset set to a supported cryptocurrency, then the transaction amount will go towards making a cryptocurrency purchase.
    3. If you wish to perform a Limit Buy (e.g. set a maximum USD-to-BTC threshold below which you will not buy a given amount of Bitcoin), set extra.rate_limit to that maximum buying threshold.
    3. For instance, you would set your desired rate (extra.rate_limit) to .0002 if you wish to use each $1 of your order to purchase at least .0002 BTC (i.e. only execute the order when BTC-to-USD price is $5000 or less). The buy order will not execute if the prevailing rate is lower than your desired rate.
  4. If creating a transaction from a Crypto Wallet to a deposit account with extra.asset set to a supported cryptocurrency, then the transaction amount will go towards selling cryptocurrency out of the user portfolio.
  5. If you wish to perform a Limit Sell (e.g. set minimum BTC-to-USD threshold below which you will not sell a given amount of Bitcoin), set extra.rate_limit to that minimum selling threshold.
  6. For instance, you would set your desired rate (extra.rate_limit) to 5000 if you wish to set a minimum selling price of $5000 for each BTC you are selling. The sell order will only execute when the prevailing rate is $5000 or more.
  7. If no extra.asset is supplied, the transaction will fail with a transaction status of RETURNED.
  8. If all the steps above have been successfully executed you can now Buy/Sell Crypto.

Receive Crypto from an External Wallet

Synapse cryptocurrency wallets may receive BTC and ETH from wallets outside of Synapse. By creating a transfer from an external vendor, the digital currencies are processed at Synapse's partner bank and a transaction is created once its status is confirmed.

Steps to Initiate Crypto Transactions from an External Vendor

  1. Make sure your controls (what you are allowed to do in our system) allow for EXTERNAL to Crypto transfers
  2. View the Crypto wallet details to get your BTC or ETH address
  3. Copy and Paste the coin addresses into your external vendor apps to create the transfer
  4. Once the status of the transaction has been confirmed from our partner, webhooks will be sent to your subscriptions url
  5. You can confirm the crypto balance by viewing the Crypto wallet details

Risk

Cryptocurrencies present distinct risks. BTC and ETH are considered commodities by the Commodity Futures Trading Commission (CFTC). Trading in any commodity is a highly speculative activity, and the markets for cryptocurrencies can be extremely volatile.

  • Crypto Wallets offered by Synapse offer neither FDIC insurance available to deposit accounts nor SIPC insurance available for brokerage accounts.
  • Disclaimer: Crypto Wallets can only hold digital currency assets purchased using Synapse services, can only sell assets from the wallet, and can neither send nor receive digital currency assets outside of Synapse.

Sub-Resources

Updated over 3 years ago