Bank transfers can take up to 72 hours to settle, which can cause significant delays before users can see the stablecoins in their available balance. In order to mitigate this and give users a near-instantaneous experience, we have introduced a feature called Float Accounts.
Float accounts are essentially reserve accounts that Clients can fund with stablecoins to cover estimated daily transaction volumes. Through Float accounts, crypto is readily available to fund user accounts as soon as users confirm transactions, giving them access to their funds instantaneously.
When a user confirms a transaction to convert fiat to stablecoins, an order is executed.
The float account stablecoin balance will be deducted the order amount and moved to the user's account where the user will be able to see their available balance change in real time and be able to transact with those stablecoins.
We operate on a Daily Net Settlement model meaning transactions are submitted throughout the day and then settled at the end of the day by moving funds in one direction (the net balance between deposits and withdrawals).
For example, if there are $1000 of deposits and $500 of withdrawals we would make a single deposit transaction for $500 at the end of the day.
This settlement process is what replenishes the Float Account so that the balance is returned to it's original amount.
Updated 3 months ago