Onboarding Friction with PSPs and Crypto Liquidity
Been looking at a few new PSPs for our cross-border operations, especially those handling $USDC and $BTC payouts. The KYB process seems to have become increasingly cumbersome lately, not just for new accounts but even for existing relationships when adding new services. It's understandable given the regulatory environment, but some providers are just glacial. Wondering if others are experiencing similar bottlenecks, or if there are specific PSPs that have streamlined this process without compromising compliance.
Also, a related point on liquidity and payout reliability for crypto-denominated funds. We've had a few instances where larger payouts get flagged or delayed significantly due to what's described as 'liquidity management' by the PSP. For those dealing with substantial daily crypto volumes, how are you mitigating these potential choke points? Are you diversifying across multiple PSPs to manage this risk, or is there a specific type of provider (e.g., those with direct institutional relationships) that consistently offers better performance here?
Definitely noticing the same trend. It feels like every quarter the KYB requirements ratchet up a notch, especially when dealing with crypto. The time investment in due diligence for new PSPs is significant, and the varying speeds of providers really complicate the rollout of new services.