Been there done that knowhow
Hyphe’s Fluid-Integration process is built upon our knowledge and understanding of financial institutions, plus depth of experience with digital currency markets, trading, custody and regulation. After a rapid feasibility assessment, there are five steps to take.
Integrate the appropriate Prime-Access API
Choose between Prime-Access, which can be operational in as little as three days, and Prime-Access Custom, which provides a tailored solution for your IT system, whether that’s proprietary or Banking-as-a-Service (BaaS). Both are available in a sandbox environment, including real, live prices and quotes, and test orders.
Set up digital currency settlement
Once you’ve chosen a custodian (Hyphe can you help select the right partner) we’ll integrate with them to automate the digital currency settlement - continuously delivering into custody the exact amount of each asset bought by your customers.
Agree cash settlement
To maximise efficiency we usually open a new bank account within your institution, or at a partner bank, for instantaneous, intra-bank transfers. Alternatively we operate accounts at several major European banks, against which trading can be settled. Settlement itself can be agreed on a per-trade or daily net basis.
Establish a framework for reconciliation & reporting
Hyphe provides clients with a daily report of executed trades, including net changes. We also integrate into your institution’s existing risk management and reporting processes, delivering the information in whatever format is required.
Ensure legal and regulatory compliance
Drawing on our regulatory expertise, Hyphe’s compliance team, alongside external advisors, will ensure efficient onboarding, and review overall compliance, adherence to sanctions law, and any tax implications. New clients receive a customised trading contract.
Getting into the details
We’ve been busy making digital currency more accessible since 2013, and have gathered plenty of insight along the way. If your question remains unanswered, we’re always happy to help.
What’s the IT effort involved in integrating Hyphe’s Prime-Access API?
Our standard API is well documented and easy to integrate into existing trading systems. It can take an internal IT resource as little as 3 days to integrate. Of course, we also provide clients a fully customisable option. This means we can connect to any trading system or core banking software you’re already using, including proprietary trading solutions. We can also do the integration work for you, working alongside your internal IT team.
Does Hyphe work with preferred custodians?
We’re open to working with any viable custody solution, both internal and external. If you already have a provider, we can work with them; if you don’t, we can help you select the right partner. In that case, our advice is truly impartial, since we do not earn commission from custodians. We only refer those that we trust to deliver a great service, selecting from our existing shortlist based on your specific needs.
What’s the FTE commitment required to operate the platform?
Once the Fluid-Integration process is complete, and assuming your institution already operates a trading function, there’s not necessarily any need for additional FTE. Provided payment flows are automated and volume remains manageable for the compliance team. We can always discuss internal resource requirements further as part of a free feasibility assessment.
If we don’t store funds with you, why do we need to arrange settlement?
It’s true that our clients do not need to prefund any accounts, as they would with a digital currency exchange. But trading together we can still expect there to be price movements which will result in profit and loss, and the difference needs to be settled. Settlement can be arranged to suit your specific protocols and requirements, but should be completed within 3 days of a trade to avoid being classified as a deposit.
Does Hyphe provide outsourcing?
No. Hyphe’s services do not qualify as outsourcing. We work with our clients under a straightforward trading contract, negotiated and agreed separately with each new client. Part of our mission to provide easy-access liquidity.