Guide
Source of funds for stablecoin payments
Before converting a stablecoin payment, a regulated provider needs to know where the money came from. This guide explains why, what evidence answers the question, and how to have it ready before the payment is sent.
- Asked by
- Regulated payment providers, and often the business being paid
- Why
- Anti-money laundering rules
- Evidence
- Statements, invoices, the wallet address and transaction hash
- Best time
- Before the payment is sent
Why providers ask
Anti-money laundering rules require a regulated provider to understand the payments it handles. A stablecoin transfer shows which wallet sent it but not how the payer came to hold the funds, so the provider asks. The same applies to the business being paid: a seller of high-value goods or a law firm often has its own obligation to check.
Two checks, run together
- Blockchain screening. The provider traces the stablecoins' recent history on the blockchain and checks it against known risks, such as sanctioned addresses or illicit services.
- Documentary evidence. The payer shows how they came to hold the funds. Screening can show where coins have been; only documents show why the payer has them.
Evidence that answers the question
| Where the stablecoins came from | Typical evidence |
|---|---|
| Bought on an exchange | Exchange statement showing the purchase and the withdrawal to the sending wallet |
| Bought with money from a bank account | Bank statement showing the fiat leaving for the exchange |
| Received as business income | Invoices or contracts matching the incoming payments |
| Sale of an asset or investment | Sale agreement, completion statement or brokerage record |
| Any of the above | The sending wallet address and the transaction hash |
How to prepare
- Send from a wallet the payer can show they control.
- Gather the statements that link the stablecoins back to their origin.
- Keep the payment simple: one sending wallet, no unexplained hops between wallets.
- Share the evidence before the payment is sent, not after.
How Sentvia handles it
Every incoming stablecoin payment is screened before it is converted, and we may ask for evidence of where the funds came from, especially for larger payments. A request for information is routine, not an accusation. Our compliance and regulation page explains how our checks work.
This guide is general information, not legal advice.
FAQ
Common questions
- What is the difference between source of funds and source of wealth?
- Source of funds is where the money for this payment came from. Source of wealth is how the payer built their overall wealth. Providers usually ask about source of funds first, and about source of wealth for larger or higher-risk payments.
- Does a request for source of funds mean something is wrong?
- No. It is a routine part of handling stablecoin payments, required by anti-money laundering rules.
- Can source of funds be checked after the payment arrives?
- It can, but the payment may be held until it is. Preparing the evidence before sending avoids the delay.
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