Custodial Accounts

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Sankaet Pathak
August 30, 2018

Deposit accounts, Savings accounts, and Debit Cards are great products to offer to users who are seeking access to a full feature financial product. Along those lines, we are also adding Custodial Accounts a part of our deposit product offering.

Here are some of the ways developers can use custodial accounts:

  1. Closed-Loop Payment Apps: Custodial accounts are a good choice for anyone wishing to move money from a bank account (via ACH or Cards) to another bank account. Its better than a deposit account because of the lightweight KYC requirement and better than a clearing account because the funds are FDIC insured.
  2. Escrow Products: If you need to pull off an escrow product that requires a Trust custodian, this is the product for you.
  3. Crowdfunding: Lightweight KYC and fund custody makes it a good fit for crowdfunding apps.

It’s fair to say, if you need ledger funds at the user level, or you do not want to be in the flow of funds for a transaction, this is a great product for that purpose. This also gives us the right architecture to pull off any kind of escrow transactions where a third party trustee is needed.


At the API level, this acts like all other deposit products, so very easy to set up:

  1. Create a user:
  2. Create a custody account: (Account type SYNAPSE-US)
  3. Move funds from a deposit account to SYNAPSE-US or vice versa:

That’s it. Just three API calls.


We believe this is a one of a kind product that can solve numerous pain points for developers. Here are some key features:

  1. Insurance: The account is FDIC insured up to a maximum of $250,000.
  2. White-Labeled: Developers work on top of the APIs and build their special sauce around it. We are just the pipes behind the scenes.
  3. No Minimum Balance: We do not have any minimum balance requirements here.
  4. No Cost Per Account: We don’t charge monthly or account opening fees.


If you wish to learn more or want to build some cool products on top of this, please reach out to us at

Sankaet Pathak

Founder & CEO @ Synapse

©Synapse Financial Technologies Inc. 2020