Settlements
Use the Settlements API to facilitate simultaneous exchange of pre-funded assets. Automate a variety of use cases that require two-party approval, including net settlement of over-the-counter trades, withdrawal requests for tri-party collateral, payment requests, and bilateral settlement for marketplace end users.
The simple request-and-approval workflow supports both one-directional and bidirectional transactions to allow a user to receive an asset (for example, send USDP) or simultaneously send and receive assets (for example, send USD and receive BTC and ETH). Only when all parties are in agreement and assets are fully funded does the Settlements API allow for change of custody. Upon completion, all settled assets are immediately available for trading, transferring, withdrawal or other supported activities.
Settlement Workflow
The settlement workflow requires two parties to complete: The Source Profile owner who initiates the transaction and the Target Profile owner who approves the transaction. Most integrations follow a similar workflow:
- Both parties agree on the transaction details and share counterparty Profile IDs outside of the Paxos Platform (for example, via email, Telegram, or other application).
- The Source Profile owner submits the transaction to the settlement platform.
- The Target Profile owner receives a notification, reviews the transaction details and approves the transaction.
- Both parties fund the associated Profiles via deposits if the requisite balances are not already present.
- Settlement (movement of assets between Profiles) occurs soon after both parties have sufficient assets on the platform.
- Once the transaction settles, both parties can immediately utilize the new balance.
