The way companies like Coinbase and Safello are handling their fiat bitcoin exchanges are supposedly through direct payments to their partner bank. The benefit of doing this is that they need to hold any funds intermediately. But does anybody know how this works in practice?
So let's say they use the market price for bitcoin a customer wants to buy 2 bitcoins - the price gets locked in - the customer makes a bank transfer to the designated bank and it verified. What happens next - how are the bitcoins coming to the customer?
Anybody know?
Thanks.
I believe you may be referring to an API combined with the Bitcoin daemon?
The company holds the BTC, and as soon as the transaction is verified, the bought BTC are sent automatically from their "hot wallet" (wallet that actively holds BTC that are ready to be purchased) and sends them to the user.
Is this what you mean?
