Custody Accounts
CUSTODY-US
Introduction
A Custody Account <<account_custodyUS>> allows a Platform to issue accounts on behalf of users, where funds are held by a third party trustee. Custody accounts are FDIC insured up to $250,000.
Common Use Cases
Custody Accounts are commonly used for:
- Platforms that want to issue lightweight (in terms of KYC and features) deposit accounts.
- Platforms creating peer-to-peer (P2P) products.
- As a replacement of FBO accounts for Platforms that are not registered as an MSB (or MTL in some cases) and must stay outside the flow of funds, but that still want to be part of a money transmission process.
- Platforms attempting crowdfunding.
Previous Steps
- Create user with KYC (recommended).
or - If user has been created already, then add required KYC.
Recommend User Creation and KYC Submission Flow
Please look at our KYC Overview for our suggested user creation and KYC addition process. Not following this process can lead to bad user experience and unnecessary efforts by the platform.
Create Account API Call:
Next Steps:
Once the Custody Account has been opened and verified, please make sure to look at our Transfers page.
KYC Requirements
Custody accounts have more light-weight KYC requirements than deposit accounts. Please note, KYC requirements will differ between individuals and business users, and might further vary depending on the use case and the nature of the user.
Minimum KYC for Individuals
| Minimum KYC for Individuals | |
|---|---|
| Base Documentation | Name, Date of Birth, Address, Email (if unverified: 2FA), Phone Number (if unverified: 2FA). |
| Virtual Documents | Social Security Number (SSN) with W-9 Verification. |
Minimum KYC Requirements for Businesses
To open a business custody account, you must supply the KYC of the table below as well as submitting a UBO form.
Minimum KYC for Beneficial Owners
We might require KYC from business beneficial owners (an individual owning 25% or more of the entity) depending on the use case.
For more information on the specific documents allowed for each KYC category and our verification process please refer to KYC Documentation and Verification.
Sub-Resources
Custody Account APIs
Legal Disclosures
Please make sure to check our General Legal and our Accounts Legal page.
Updated almost 5 years ago