Fiat assets represent traditional money that have been declared as legal tender. Fiat money is issued and managed by a country’s government e.g. the US dollar, the euro, the British pound

Layer2 Financial Inc. is a next generation, fully compliant, Payments, Banking as a Service that seamlessly combines fiat and digital assets into a single, easy to use application processing interface (API). With a multi-partner approach, we have simplified the complex fiat/ crypto ecosystems; enabling fintechs, neobanks to launch innovative payment and banking products within days, while managing relevant risks proactively.

You just need your customers, a user interface to offer the services and your existing support channels. We take care of everything else including accounting, customer onboarding, money movement, operations such as gas, settlement, compliance, KYC/KYB, AML/ fraud monitoring, integration with regulated partners such as banks/trusts, qualified custodians, exchanges.

Embedded financial products allow you to increase your revenues significantly by providing banking products to your customers. You can also reach a wider customer base by offering multiple payment options to your customers.

Yes, you can use Layer2 for your own institutional needs. You can use our APIs to integrate this directly with your internal applications.

You can use Layer2 APIs and Management UI if you are an accredited individual. However, we cannot support use of our APIs directly for non-accredited individuals.

We currently support over 20+ and growing list of fiat and digital currencies today and continue to add more. We, along with our banking, custody, exchange partners have a thorough selection process for adding new digital asset support. Click here for a full list of supported Assets.

Services have to be provided by a regulated entity. However, we provide a “sponsor bank model” for non-regulated entities. In this case, your customers are technically customers of the regulated entities. In the sponsor bank model, we, along with our partners would take on the compliance burden (e.g. KYC, KYB). This model greatly reduces the compliance and operations burden on the fintech.

Your customers will use your web, mobile app to conduct all their transactions and see their balances.  You can use our Dashboard to view and manage the various customer accounts, operations

Yes we have a dashboard that we are rolling out to clients and regulated partners.

Typical integration takes 4 weeks. We have seen it done in 3 and as long as 10. It really depends on how fast your engineers can integrate with our APIs and legal can you review the contracts.

In order to maintain a coherent end user experience, we typically don’t interact with your end users. You will have to provide the support using your existing processes and channels. If we are providing. the “sponsor bank” model, then we may need to reach out to the end users directly for any compliance related issues.

Digital assets are not insured like fiat based deposits by FDIC (USA) and CDIC (Canada)

Layer2 Financial is subject to regulation as a money transmitter in the USA and a money service business in Canada.  USA regulators and examiners include Fincen and each licensed state examination team.  FINTRAC regulates the Canadian operations.

Tokenization is the process of representing a digital or real world asset, as a token that lives on a blockchain. It is used to increase the transferability of assets; increasing speed, reducing cost and unlocking liquidity.

Digital Assets is a broad term that encompasses anything minted and exchanged on a blockchain, such as Stablecoins (e.g. USDC), Cryptocurrencies (e.g. Bitcoin), Central Bank Digital Currencies or CBDCs, Non-fungible Tokens or NFTs (e.g. Bored Ape).

With a current market cap of $900B, Digital Assets support multiple real life use cases today, from Banking to Payments to Identity. As the technology, ecosystem and adoption is growing, so are the number of use cases.

All Digital Assets are technically stored in accounts on the Blockchains. Private keys for these accounts allow you to access and transfer the assets. There are 2 different approaches to managing these keys.
1. Non-custodial – You can store your private keys in safe place like a Ledger device and access your funds via 3rd party apps such as Metamask.
2. Custodial – You can also delegate the responsibility to custodians, such as Anchorage Digital Bank and Fortress Trust who will hold these assets for you and manage the deposit/ withdrawal of these assets.

Please note that Layer2 only supports Custodial storage, via its Qualified Custody partners, Anchorage Digital Bank and Fortress Trust.

You can acquire Digital Assets via exchanges, either decentralized exchanges like Uniswap or centralized exchanges/ Liquidity partners like Coinbase or Circle.
1. Decentralized – A decentralized exchange (DEX) allows users to buy crypto through direct, peer-to-peer cryptocurrency transactions, all over a online platform without an intermediary.
2. Centralized – A centralized exchange (CEX) facilitates the buying and selling of cryptocurrency, either for fiat currencies, like the US dollar, or between digital assets, like BTC and ETH. They function as trusted intermediaries in trades

Please note that Layer2 is currently only integrated to licensed Centralized exchanges and liquidity partners, in the different jurisdictions that we operate in.