Counterparty Book¶
About¶
Hex Trust helps clients comply with Travel Rule regulations, particularly in Singapore and the MENA region. These regulations require VASPs to collect and verify sender and recipient information for transactions exceeding defined thresholds, and to ensure secure information sharing with compliant counterparties.
The Counterparty Book feature enables clients to:
- Associate blockchain addresses with counterparties (individuals or companies)
- Link counterparties to their respective VASPs or indicate self-operation as VASPs
- Provide supplementary information about counterparties and transactions for enhanced transparency and due diligence
For transactions above regulatory thresholds, clients must declare:
- Counterparty details, including associated VASPs
- Supplementary transfer information
- Transaction type (technological or financial)
Counterparty Creation and Management¶
A Counterparty is a person or entity a wallet may transact with. The Counterparty Book serves as both a Travel Rule compliance tool and a resource for managing entities within the Hex Trust ecosystem.
View and Create: - Access via Settings → Counterparty Book - Click "Create Counterparty" and enter Full Name (Individual) or Legal Name (Company) - Add optional Additional Counterparty Information for compliance purposes
Add Addresses: - Multiple addresses can be added in one request - Required fields: Address, Network, Address Label - Optional fields: Wallet Source, Memo - Wallet Source options: VASPs/CASPs or Self-Hosted (self-hosted addresses require verification) - Address additions or updates require Admin approval
Deposit Flow¶
Non-intermediary institutions: - Own Profile is the default beneficiary - Hex Trust is the default VASP beneficiary
Intermediary institutions: - Hex Trust is the default VASP beneficiary
Matching Counterparty Detected: If the incoming deposit address matches an existing counterparty entry (name, address, and required info), no declaration is required.
No Matching Counterparty: The deposit is flagged as "Pending Originator/Beneficiary Declaration Information." Required information varies by address type.
Declaration Step: VASP¶
If a counterparty and address aren't saved in the Counterparty Book, enterprises must save:
Originator Information: - VASP selection - Individual OR Company Information - Additional Information Requirements - Option to save counterparty on-the-fly (triggers approval)
Beneficiary Information: - VASP selection - Individual OR Company Information
Declaration Step: Self-Hosted Verification¶
Note: Self-hosted sections apply only to HT Singapore custodian entity.
For unverified self-hosted addresses, declare:
Originator Information: - Individual Full Name OR Company Legal Name - Additional Information Requirements - Option to save counterparty on-the-fly (triggers approval)
Beneficiary Information: - Individual Full Name OR Company Legal Name
Verification Process: - System creates new counterparty and adds self-hosted address - Address addition requires 2FA confirmation by Initiator role and Admin approval - Transaction moves to "Pending Wallet Verification" - Send small transfer (native asset or stablecoin) within 24 hours - Platform confirms balance and verifies funds via chain explorer - Address marked as verified once confirmed
Withdrawal Flow¶
Non-intermediary institutions: - Own Profile is the default originator - Hex Trust is the default VASP originator
Intermediary institutions: - Hex Trust is the default VASP originator
Users can save beneficiary counterparties from the Counterparty Book during withdrawal. Addresses can be selected from Internal Vaults or the Counterparty Book.
Declaration Step: VASP¶
If address doesn't appear in Internal Vaults or Counterparty Book:
Beneficiary Information: - Beneficiary VASP - Counterparty: Individual OR Company - Additional Information Requirements - Option to save as counterparty and address (triggers separate approval plus withdrawal approval)
Declaration Step: Self-Hosted Verification¶
Users must add and verify self-hosted wallet addresses through the Counterparty Book prior to withdrawal.
Verification for EVM, Solana, Bitcoin & Other Addresses: Users verify addresses by following platform instructions. Once the additional transfer is sent, the self-hosted address is marked verified.
Counterparty Whitelisting¶
Whitelisting restricts asset transfers to a predefined list of approved blockchain addresses, mitigating fraud, misrouting, and unauthorized withdrawal risks.
Enable Vault Whitelisting: Administrators activate whitelisting controls on a per-vault basis, restricting outbound transactions to approved addresses only.
Select Specific Vaults: Choose which vaults require whitelisting enforcement for flexibility across accounts or business units.
Select Counterparties with Linked Blockchain Addresses: From the managed counterparty list, select entities with verified blockchain addresses (exchanges, liquidity providers, institutional clients, verified self-hosted wallets).
Whitelist and Approve: Selected addresses are added to the vault's whitelist. Transactions can only execute to approved addresses, subject to applicable policies.