Alfred supports both custodial and non-custodial models for executing crypto-to-fiat offramp transactions. The model used determines how blockchain addresses are managed and how funds are received before settlement into a fiat bank account.

Custodial vs Non-Custodial Comparison

Model	Wallet Management	Origin Address	Typical Use Case
Custodial (APM)	Alfred-managed rotating addresses	Optional	Simplified settlement for platforms
Non-Custodial	Client-managed wallets	Required	Platforms using their own custody infrastructure

Both models allow developers to convert digital assets into fiat currency and deliver funds to local bank accounts through Alfred’s payment infrastructure.

Custodial Offramp (AlfredPayment Manager)

In a custodial offramp, Alfred manages blockchain settlement addresses and coordinates the conversion of digital assets into fiat currency on behalf of the client.

This functionality is provided through AlfredPayment Manager (APM).

APM simplifies digital asset settlement by issuing managed wallet addresses for supported blockchain networks. These addresses are generated and rotated through smart contract infrastructure to securely receive payments.

Supported networks include:

Solana
Tron
Ethereum
Base
Arbitrum
Polygon (Matic)

Clients send USDC or USDT to the wallet address provided by Alfred. Once the funds are received and confirmed on-chain, Alfred processes the conversion and settles the resulting fiat currency into the bank account registered using the Create Payment Method endpoint.

Custodial Offramp Flow

Client requests an offramp transaction
Alfred provides a managed settlement wallet address
Client sends USDC or USDT to the provided address
Smart contracts detect the transaction and generate settlement events
Alfred processes the conversion and liquidity routing
Fiat is delivered to the registered bank account

In the custodial model:

The origin wallet address is optional
Blockchain monitoring and settlement are handled by Alfred
Smart contracts generate settlement events for each supported chain
Typical settlement time ranges from 3–5 minutes after on-chain confirmation

Non-Custodial Offramp

In a non-custodial offramp, the client maintains control over their own wallet infrastructure.

Instead of using Alfred-managed addresses, the client initiates the transaction directly from their own wallet. Because Alfred does not manage custody in this model, the origin wallet address must be included in the transaction request.

This allows Alfred to:

identify the source of funds
monitor the blockchain transaction
associate the transfer with the corresponding offramp request

Non-Custodial Offramp Flow

Client creates an offramp transaction
Client submits the origin wallet address in the request
Funds are sent from the client’s wallet
Alfred detects the incoming transaction
Fiat settlement is processed to the registered bank account