Virtual Wallets

Introduction

Our virtual wallet product for businesses is designed to provide efficient and centralized management of digital assets through an integrated Wallet and Holding Wallet system:

• Wallet: Serves as a deposit address where cryptocurrencies are received and recorded as a virtual balance. This balance represents a debt owed by the company to its clients, ensuring clear and reliable fund management.
• Holding Wallet: Acts as the main repository for the real assets, automatically transferred from the wallet to maximize security and control over the funds.

The primary goal of the product is to centralize client deposits, allowing them to utilize their funds at their discretion according to their business needs and objectives.

Built on blockchain technologies such as Polygon, BNB, and Tron, the product offers a robust, transparent, and scalable solution for companies looking to simplify cryptocurrency management.

Flow from Deposit in the Virtual Wallet to the Holding Wallet

1. Receiving the Deposit in the Wallet

• A client sends cryptocurrency to the wallet, which is a unique deposit address generated for that client.
• The transaction is processed and recorded on the corresponding blockchain (Polygon, BNB, or Tron), ensuring transparency and immutability.
• Once the transaction is confirmed, the system registers the amount as a virtual balance in the client's account on the platform. This balance represents a debt owed by the company to the client, equivalent to the deposited amount.

2. Transfer to the Holding Wallet

• Automatically or based on predefined rules, the real funds (the deposited cryptocurrency) are transferred from the wallet to the holding wallet, a secure address managed by the company.
• This step ensures that the real assets are centralized in a secure location, optimizing management and security.

3. Virtual Balance Reflection

• The client can view their available virtual balance in real-time on the platform.
• This balance can be used according to the platform's rules, such as for future transactions, payments, or internal operations, always at the client's discretion.

4. Audit and Transparency

• The entire flow, from the initial deposit to the transfer and the reflected balance, is traceable and auditable thanks to blockchain integration.
• This allows both the companies and their clients to verify transactions and ensure the integrity of the process.

This flow ensures security, transparency, and efficient fund management, allowing businesses to centrally manage crypto deposits while maintaining flexibility for their clients.

Managing Virtual Wallets

The Virtual Wallets in our system enable clients to deposit and withdraw funds, with specific behaviors for different types of transactions:

1. Depositing and Withdrawing Funds

• Clients can deposit funds into their virtual wallets and withdraw them as needed.

2. Withdrawals to External Wallets

• When funds are withdrawn from a virtual wallet to an external wallet, the assets are deducted from the holding wallet, ensuring that the real funds are transferred.

3. Transfers Between Virtual Wallets

• If a transfer is made between two virtual wallets within the ecosystem, this is considered an internal transfer. It is a simple movement of virtual balances and does not involve any blockchain transactions. No assets are moved from the holding wallet, and no external operation is performed on the blockchain.

This design ensures that the virtual wallets function seamlessly within the ecosystem, allowing for flexible internal transfers and secure withdrawals to external wallets.

Managing the Holding Wallet

The Holding Wallet serves as the central hub for managing real funds in our virtual wallet product. This component enables businesses to perform several key operations:

1. Deposit External Funds

• Companies can deposit cryptocurrency directly into the holding wallet from external sources, ensuring flexible management of real resources.

2. Withdraw Funds to External Wallets

• Withdrawals from the holding wallet will be limited to the funds available in the wallet on the blockchain—no overdrafts are allowed.
• In the event of a withdrawal from a virtual wallet to an external wallet, the funds are transferred from the holding wallet. It is recommended that the holding wallet has sufficient funds to guarantee this functionality.

3. Transfer to a Virtual Wallet

• Funds can be transferred from the holding wallet to a specific client's virtual wallet.
• This operation increases the virtual balance of the client's wallet, even if the holding wallet does not have the required balance. In other words, this action can increase the company's debt to the client, reflecting the system's flexibility to accommodate specific needs.

These advanced functionalities ensure that businesses have full control over their real and virtual assets while maintaining the flexibility to operate according to their clients' needs.

Company Clients and Ramp Operations

Company clients are end-users of your platform who can perform ramp operations—converting between fiat currency and cryptocurrency. The client management system integrates seamlessly with the virtual wallet ecosystem to enable secure and compliant on-ramp n and off-ramp transactions.

Understanding Clients in the Virtual Wallet Ecosystem

What is a Company Client?

A company client represents an individual end-user who has completed KYC (Know Your Customer) verification and has been granted access to perform ramp operations on your platform. Each client can be associated with multiple virtual wallets, but each virtual wallet can only belong to one client.

Client-Wallet Relationship:

• One wallet → One client: Each virtual wallet is exclusively associated with a single client
• One client → Multiple wallets: A client can have multiple virtual wallets across different blockchains or for different purposes
• Active wallets only: Only virtual wallets with "active" management status can be associated with clients and used for ramp operations

Prerequisites for Ramp Operations

Before a company can perform any ramp transactions, the following requirements must be met:

1. Client Creation: A client must be registered with complete KYC information, including: - Personal identification documents - Address verification - Tax identification number (country-specific) - Contact information
2. Bank Account Setup: For bank ramp off operations, at least one verified bank account must be linked to the client
3. Active Wallet Association: At least one active management virtual wallet must be created and associated with the client

How Ramps Work with Virtual Wallets

On-Ramp (Fiat to Crypto):

1. Client initiates a ramp on request and receives fiat deposit information in order to transfer the funds
2. Funds are received and verified
3. Equivalent cryptocurrency is credited to the client's virtual wallet balance
4. Real assets are held in the holding wallet, while the client's virtual balance reflects their ownership

Off-Ramp (Crypto to Fiat):

1. Client initiates a withdrawal from their virtual wallet to their bank account
2. The system deducts the virtual balance from the client's wallet
3. Real cryptocurrency is transferred from the holding wallet to convert to fiat
4. Fiat currency is sent to the client's linked bank account