Custodial
A custodial service holds the private keys to the wallets where your money lands. You see a balance in their app, and they move funds when you ask. It is convenient, but you are trusting them with the money itself, and in most places that activity is regulated.
Non-custodial
In a non-custodial setup, you control the keys. Payments land directly in addresses derived from keys you hold. The service watches those addresses and reports what it sees, so what it shows you are observations of payments, not a balance it holds for you. There is nothing to withdraw, because the funds are already yours.
What non-custodial does not mean
- It does not mean “unregulated”. Depending on the country and on exactly what a service does, other rules can still apply.
- It does not mean the service can reverse payments. Refunds are sent by the merchant, from a wallet the merchant controls.
Where GRYPHEM PAY sits
GRYPHEM PAY is custodial. Live payments are processed through GRYPHEM PAY’s own Bitcart account:
- customers pay wallets that belong to the platform, not to you;
- GRYPHEM PAY holds the funds on your behalf and shows what it owes you as a balance, kept in an append-only ledger;
- you withdraw through payouts. By default a second member of your team approves each one, a GRYPHEM operator always reviews it, and it is sent from the platform’s hot wallets through Bitcart to an address you allow-listed in advance;
- GRYPHEM PAY never asks for your private keys.
Holding and transferring customers’ crypto-assets is regulated in most places, so live payments are enabled only after your business verification is approved and every platform release gate has passed, including one that requires authorisation to provide custody (or counsel’s written opinion that none is needed). GRYPHEM PAY holds no such authorisation today and makes no licensing claims. Until live payments are enabled for your account, nothing is held for you.
Fees
Platform fees are invoiced to the merchant. They are never skimmed from customer payments.