What must a bank understand before accepting funds from stablecoin conversions for onward customer payments?

I would make two things clear from the beginning: the dollars are coming from a crypto conversion, and your company is acting as an intermediary for customer payments.

Those are separate parts of the bank’s assessment. A bank might accept proceeds from the sale of your company’s own assets but have a different policy for receiving money connected to your customers and paying their suppliers. Calling the account “crypto-friendly” tells you very little about whether your actual flow is acceptable.

Prepare a clear flow-of-funds diagram. Show where the original money comes from, who converts it, which account receives the fiat proceeds, whose money it represents and where the onward payment goes. Include the countries, currencies, expected activity and whether the beneficiary needs to see the underlying customer’s name on the payment.

The bank will also need to understand your regulatory status and account purpose. U.S. supervisory guidance calls for risk-based assessment of an MSB’s services, markets and anticipated activity, together with verification of applicable registration, licensing or agent status. It does not treat every MSB as presenting the same risk. FFIEC guidance.

I would have this conversation before sending live funds. Get the proposed conversion and onward-payment arrangement reviewed as a whole, rather than discovering after onboarding that the account supports only one part of your business.