Money transfers into and throughout the U.S. are becoming even more widespread due to the capabilities of open market banking APIs like Sila. With Sila, users can create their own white-labeled API that is ready to be built quickly and effectively, and one that complies with all necessary regulations.
Compliant services like Know Your Customer and Know Your Business (KYC and KYB) are already integrated, and security is improved through the use of the API and secure third-parties.
In addition to these benefits, users can tap into the SILAUSD, Sila’s U.S.-issued stablecoin. Using this U.S.-issued stablecoin pegged to the penny, the most sturdy monetary value there is, users will be able to send money faster and more affordably into or out of the United States.
If you’d like to reap the benefits of Sila’s U.S.-issued stablecoin, you are in the right place. This article will identify:
- The key benefits of integrating SILAUSD
- Reasons to choose SILA API and the SILAUSD token for money transfers
- Challenges to integrated SILAUSD
- And how to start using Sila API and the SILAUSD token for money transfers
Benefits of Integrating U.S.-issued Stablecoin Money Transfers with the Sila API
U.S.-issued stablecoin money transfers are made through Sila’s unique digital currency stablecoin, the SILAUSD token, which is pegged to the penny. This type of currency would benefit you and your business, but if you remain unsure, it’s important to first establish business use-cases.
Sila’s API can be integrated into new or existing payment systems as a white-labeled digital wallet that supports mobile, embedded, and crypto transfers. The mobile wallet bank account is backed by an FDIC-member financial institution, which funds up to $250,000 per depositor, and gets users up and running quickly.
Therefore, users can create a digital wallet for access on the web, on mobile, and for embedded payments. You don’t need to use the SILAUSD, but that functionality is available. The SILAUSD can be directly integrated with this mobile wallet and funds can easily be shifted between a bank account, mobile wallet fund, and into the cryptocurrency fund.
By using SILAUSD, mobile transactions are incredibly secure. Mobile currencies are more protected than other funds because transferring that money into the cryptocurrency is posted to a blockchain address. Any crypto transactions made between users are also posted to a blockchain address, which is publicly-viewable but ID verification is encrypted.
Therefore, using Sila stablecoin to make even simple money transfers can add another level of security and protection. Sending money along the blockchain address is an additional form of financial and identity verification that is largely automated and codified, and ideal when sending money across borders.
Sending money, data, and smart contracts by crypto further protect an individual’s digital asset, and sensitive banking and personal information.
In addition to this, transferring crypto is instantaneous. While there is some lag time when it comes to transferring cash from a bank account to a Sila token, there is virtually no lag time when transferring on the blockchain. Therefore, integrating a stablecoin can allow for faster and more efficient money transfers.
The SILAUSD token is also pegged to the USD penny, so transferring money within or to USD makes intuitive sense. You don’t have to do any additional calculations (other than an applicable foreign exchange rate) because 1 token would equal 1 penny. Therefore, making transfers within USD or to USD is very simple.
Why Choose the Sila API for U.S.-issued Stablecoin Money Transfers
To take advantage of the unique benefits associated with Sila’s SILAUSD token, users will have to access a Sila-supported digital wallet. Within record time, users will be able to initiate payment requests, initiate in-app payments, and link bank accounts all within the Sila API.
Choosing the SILA API for U.S.-issued stablecoin money transfers means that users also gain access to other valuable services, such as a mobile wallet, mobile banking, ACH transfers, and embedded payments. Sila is start-up-ready; the app is technically compliance-as-a-service and banking-as-a-service. Sila’s end-to-end digital wallet natively supports crypto and blockchain, and bank account linking, so you can quickly get up and running on the blockchain network.
All that is needed is the 10 lines of Sila code and your business can fully integrate its own white-labeled mobile and digital banking wallet. Users are ready to use the digital wallet within 59.6 hours!
The Sila API moves towards open banking and away from a controlling, central bank. Members are able to seamlessly move money anywhere in the world through the secure U.S.-issued stablecoin.
If you choose Sila, you can gain access to a number of secure and integrateable API products, such as an ACH API, a bank account linking API, wallet APIs (like the basic wallet API and Ethereum wallet API), the KYC and SSN verification API, KYB and EIN verification API, and the bank account balance API. Therefore, no matter what your business is capable of now, you know that you can trust Sila to help you scale to bigger capabilities as you grow.
Sila’s open API model also has the support of strong digital partners, such as Alloy for Know Your Customer/Business (KYC/KYB) identify verification, Plaid for bank account linking, and an FDIC-member bank account with $250,000 insurable dollars per depositor. With open banking, customers have more access to their money, more choice around how they can move their money, and more online financial options.
Challenges Faced When Integrating U.S.-issued Stablecoin Money Transfers with the Sila API
With all banking APIs, there are downsides. The biggest challenge that a banking API faces is the propensity of fraud, which is prevalent throughout banking systems as a whole. As a business using the Sila API app, you will have to identify and categorize your rates of fraud. Managing fraud in both prevention and servicing is incredibly difficult. You might need to use vendors to build systems around your financial payment processing, but stopping financial abuse in certain demographics might be impossible to track.
It can be hard to know when to “stop” a fraudster and when instead to research that fraudster movement as a form of prevention. Crypto is not immune to fraud either. Cryptojacking and other forms of crypto-hacking are prevalent, so security needs to be in place in order to keep any cryptocurrency exchange secure.
A Sila customer might need to adjust the ways that they provide financial services in order to protect against a fraudulent service. This might include changing user verifications, account verifications, account transfer limits, and fraud alerts.
For example, if a user logs into the platform and immediately transfers money into an account and makes a risky purchase (such as a purchase that is not in that user’s location), then you will need to decide how that transaction is flagged. Is it stopped immediately? Does this depend on the size of the transaction?
Other than typical fraudster challenges, there is also the fact that a stable token is more progressive than a fiat currency. So users might be hesitant to try-out “cryptocurrency” because it is a new technology that is not mainstream. They, therefore, aren’t comfortable with the risks associated with using this type of currency. Getting more users comfortable with using the SILAUSD token or any type of cryptocurrency will encourage its uptick.
Businesses might want to base their security on API security as well as U.S. money transfer (ACH) security, which is typically pulled from KYC/KYB requirements, the Electronic Fund Transfer Act (EFTA), and the Office of Foreign Asset Control (OFAC).
How to Start Using the Sila API for U.S.-issued Stablecoin Money Transfers
Using the Sila API is simple. Register online to give the Sila API a try. You can then explore the unlimited Sandbox testing environment so that you can explore the possibilities that the Sila API can provide for you and your business.
The Sila Sandbox allows users to test through setting up the SILAUSD token so you can clearly navigate sending and receiving crypto transfers and honing in on that process for your clients. But only developers can access this environment, so developer registration is required.
These banking APIs can be easily integrated into an existing payment system, on the web, mobile, or as a service so that you can quickly provide crypto transfers within a matter of days.