Overview

Challenges in Wallet Management

Pooled custody risk: Traditional custodial models concentrate funds, creating a single point of failure.
Limited transparency: Users and regulators cannot independently verify balances without direct on-chain segregation.
Operational overhead: Scaling to large user bases increases complexity in deposit routing, reconciliation, and withdrawals.
Compliance exposure: Regulatory frameworks increasingly require clear segregation of client funds and auditable records.

3PAY provides Wallet-as-a-Service (WAAS), an infrastructure layer enabling two operating configurations:

Custodial model: All client deposits are routed to the business’s Account Wallet. Balances are managed internally by the business ledger.
Non-custodial model: Each end user is provisioned with a dedicated on-chain wallet and a persistent deposit address. Funds remain segregated and verifiable on-chain.

Both models run on the same architecture, ensuring consistent security, scalability, and compliance alignment.

Account Wallet: Provisioned for every business; required in both models.
User Wallets: Enabled in non-custodial configurations to provide per-user segregation.
Governance policies: Role-based approvals and threshold rules for sensitive outflows.

User Deposit → User Wallet (non-custodial) OR Account Wallet (custodial) → Treasury / Payout

A user deposits into a persistent wallet address.
3PAY verifies and confirms the transaction on-chain.
Funds are either:
- Held in the user’s wallet (non-custodial), or
- Pooled in the Account Wallet and credited via the business ledger (custodial).
Outflows are processed to treasury accounts, operational expenses, or external payout corridors.

Fund segregation reduces counterparty and systemic risk.
Operational flexibility aligns wallet models with business and regulatory requirements.
On-chain verifiability supports users, auditors, and regulators.
Scalable architecture supports growth from small cohorts to millions of wallets.