Architecture, Compliance & Shamir Secret Sharing
3PAY is a technology infrastructure provider, not a custodian. We deliver secure, non-custodial rails for stablecoin payments, ensuring that client funds remain entirely under their control. Our role is to connect businesses directly to the blockchain with enterprise-grade tools, while working alongside licensed financial institutions to deliver complementary services such as exchange, settlement, and payout capabilities.
Security & Trust Architecture
This page outlines 3PAY’s segregated wallet model, compliance safeguards, and our implementation of Shamir Secret Sharing (SSS) to ensure enterprise-grade key security.
Segregated Wallets Per Merchant
- Every merchant account is provisioned with a dedicated on-chain wallet.
- Funds are never co-mingled across multiple accounts.
- One merchant’s exposure cannot impact another.
This structure is inherently safer than legacy gateways that pool balances in shared hot wallets.
Non-Custodial by Design
- Wallet owners remain the ultimate custodians of their funds.
- 3PAY facilitates transaction flow but does not control balances.
- Balances are independently verifiable on-chain at all times.
This ensures that ownership and control always remain with the merchant.
Transparency & Auditability
- All transactions are recorded immutably on-chain.
- The 3PAY dashboard mirrors blockchain data in real time.
- Records can be reconciled directly against the blockchain ledger.
This eliminates hidden balances, blind spots, or reconciliation risk.
Operational Resilience
- No single point of failure through pooled funds.
- Modular scalability: adding new users does not increase systemic risk.
- Designed for compliance-first operations with full traceability of every transaction.
Compliance Safeguards
3PAY is engineered to align with global financial and regulatory standards.
Sanctions & AML Screening
- All deposits and withdrawals screened against global sanctions and AML databases.
- Sandbox environments simulate compliance outcomes for developer testing.
- Production environment blocks suspicious activity in real time.
Refunds-to-Origin Policy
- Refunds are always routed back to the original sending wallet.
- Prevents misuse such as layering or laundering via refund paths.
- Maintains an immutable, verifiable audit trail.
KYC Responsibility
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3PAY operates as a non-custodial infrastructure provider.
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Merchants retain full responsibility for KYC on their end-users.
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3PAY enables compliance through:
- Transaction-level audit logs.
- Risk signals and high-activity flags via webhooks.
- Guidance on integrating best-practice KYC workflows.
Shamir Secret Sharing (SSS)
Each wallet is secured using Shamir Secret Sharing (SSS) rather than a single private key.
- The private key is split into multiple cryptographic shards.
- Wallet owners hold their shard, ensuring direct control.
- A transaction can only be executed when the required quorum of shards is applied.
No withdrawal or payout can proceed without the merchant’s shard.
How It Works
- Withdrawal or payout request is initiated.
- Owner reviews and applies their shard to approve the request.
- Required quorum of shards authorizes the transaction.
- Transaction is finalized and broadcast on-chain.
Why It Matters
- Ownership → Merchants always retain control over wallet shards.
- Auditability → All balances and transactions are verifiable on-chain.
- Resilience → No single point of failure; keys are never stored in one place.
- Trust → Security model aligned with institutional governance standards.
Who Benefits
- Businesses → Isolated balances and reduced counterparty risk.
- Partners & Institutions → Assurance that funds are independently secured and verifiable.
- Regulators → Transparent, auditable infrastructure with compliance-first design.
Updated about 1 month ago