This page is a supplement to the full Conditions of Use provided here.
Block Transfer is not a bank and does not itself take deposits. You will not receive any interest, credit, or other earnings on the funds in your Block Transfer account. You can deposit funds as unsecured claims against Block Transfer, a Delaware corporation regulated by the SEC. We hold deposits in fungible bulk, matched 1:1 on and off the Stellar distributed ledger. Your funds are not insured by the FDIC or SIPC.
Users that pass KYC and AML checks can deposit funds on the platform. The deposit process involves several key steps that ensure security and compliance:
First, the user's identity undergoes thorough verification through KYC and AML checks, aligning with your established policies. This step is crucial to maintain the integrity of the platform and prevent unauthorized access.
Once the user's identity is validated, they are required to link their bank account to their Block Transfer account. This linkage is designed to ensure that the bank account holder's data corresponds to the details provided on the Block Transfer platform.
With the bank account properly linked, users can initiate the deposit of funds for a bona fide purchase of seucirities. This deposit involves a two-way transaction: funds are debited from the user's bank account and simultaneously credited to Block Transfer's account. This dual movement ensures transparency and real-time tracking.
Funds deposited by users are held as unsecured claims against Block Transfer. These funds are not covered by FDIC or SIPC insurance.
Deposited funds are meticulously held in segregated demand deposit accounts controlled by Block Transfer. This segregation is in place to safeguard user funds, reducing the risk of commingling with other operational accounts and enhancing security
Once deposits are credited to the debit origination account maintained by Block Transfer, funds may be transferred to other segregated high-interest demand deposit or money market accounts.
The Block Transfer system systematically records and facilitates transfers of deposit obligations between different Block Transfer accounts due to bona fide private securities transactions. This dynamic movement supports investment strategies and aligns with users' financial objectives.
To ensure accuracy and transparency, user accounts within the Block Transfer system are credited based on the processing time of the deposit. This step finalizes the deposit process, making the funds available for various investment activities on the platform.
Once credited, users can utilize the funds to purchase securities such as stocks from transfer agent clients in accordance with applicable securities offering laws. Alternatively, users have the flexibility to send funds to other verified investors on the platform, fostering a dynamic and collaborative investment community.
Users can initiate withdrawals from their Block Transfer account. The withdrawal amount is decremented from the user's account balance on the Block Transfer system. The balance can be decremented down to a minimum of zero dollars.
The withdrawal request is then processed based on the user's selected withdrawal method. This withdrawal method may include options for instant withdrawal or wire transfers, and it might involve associated fees.
If Block Transfer's debit recipient demand deposit account has enough funds, the withdrawal amount is sent from there. However, if the balance in the original demand deposit account is insufficient, funds are transferred from segregated deposit funds money market or another interest-demand deposit account as previously described to the withdrawal processing account.
Once the withdrawal processing is complete, the user's account is credited with the withdrawn amount through the user's selected means of credit.