How to Make B2B Crypto Transfers More Secure and Seamless

TL;DR: Traditional B2B transfers flow through a global system of bank accounts. In the world of cryptocurrency, however, B2B transfers face a unique set of challenges due to the nature of crypto addresses, including frequent address changes, dusting attacks, and the risk of untrusted addresses. This article explores how to make B2B crypto transfers both safer and more seamless.

For stablecoin market players, expanding operations brings a dual challenge from regulators and the market alike: enhancing fund security and meeting higher compliance and risk control standards. At the same time, the inherent characteristics of blockchain technology create significant trust barriers to inter-institutional collaboration. In this complex environment, the key question for the stablecoin ecosystem is how to build efficient and trustworthy collaboration mechanisms that balance business innovation and risk control while satisfying regulatory demands.

Finding the Best Solution Through Scenarios

The Address Change Dilemma: A Trade-off Between Security and Efficiency

Changing a receiving address for security reasons or wallet management is a common practice in the crypto industry, but it introduces significant friction. When a supplier changes their receiving address, it typically triggers a cumbersome process: signing supplementary agreements, updating contract payment details, and ensuring all relevant parties are notified of the new address. This process is not only time-consuming and labor-intensive but also increases the risk of errors due to complex communication chains.

Worse yet, after an address change, both parties often need to conduct a small test transaction to verify the new address, further extending the business cycle. This lengthy verification mechanism dramatically increases communication and coordination costs. Paradoxically, the repeated transmission and verification of sensitive payment information exposes it to more potential security threats.

What institutional users truly need is a way to escape the repetitive and tedious cycle of address changes and verification. They need to conduct transactions based on established trust, where both parties recognize each other’s accounts without needing to worry about the specific wallet address behind them. When a receiving address needs to be updated, the change should integrate seamlessly with the payment workflow.

As shown in the diagram above, users can independently bind and update the wallet addresses behind their Safeheron Connect Profile. Inter-institutional business is conducted by connecting through these profiles, rather than relying on specific wallet addresses. Furthermore, all transactions are processed in a tamper-proof TEE (Trusted Execution Environment) that is protected from interception, ensuring both security and compliance. This mechanism helps institutions efficiently build reliable trust and significantly simplifies their integration processes. For example, in a supply chain payment scenario, a company only needs to maintain a list of supplier profiles, dramatically improving payment efficiency and security.

Manual Address Errors: Irreversible Asset Loss

While many might consider entering the wrong address a novice mistake, social engineering remains one of the sharpest tools in a hacker’s arsenal. This clearly demonstrates that manual address handling is an undeniable weak link in digital asset security. As attack techniques evolve, hackers have developed sophisticated fraud schemes: from creating convincing phishing websites and perfectly replicating messaging app interfaces to contaminating a target’s wallet with small transactions (address poisoning)—all designed to trick users into sending funds to the wrong address. The irreversible nature of crypto transactions means that once funds are sent to an incorrect address, there are virtually no technical means to recover them, resulting in permanent loss.

Institutional users are prime targets for such attacks due to their large transaction volumes, high frequency, and diverse range of counterparties. In daily operations, institutions face the immense challenge of verifying the authenticity of numerous counterparty addresses. Even with strict internal verification processes, it is difficult to be completely foolproof. Even seasoned industry professionals can fall victim to highly sophisticated and well-disguised phishing attacks.

The Safeheron Connect Profile only allows binding to internal team wallet addresses and cannot be linked to any external addresses, creating a highly controlled and secure environment. Transferring via Connect completely eliminates the need to copy and paste addresses, providing an ideal solution for high-frequency trading scenarios.

Consider the frequent fund settlements between exchanges and market makers. A market maker can create dedicated profiles for different exchanges. The exchanges, in turn, can use an approval mechanism to ensure the compliance of incoming funds. This not only significantly improves settlement efficiency but also provides end-to-end transparency and traceability of fund flows through a complete transaction record chain, establishing a standardized process for institutional digital asset trading that is both efficient and secure.

Post-Transaction AML Checks: A Crypto Payment Compliance Challenge

Another major challenge for institutions in crypto transactions is meeting Anti-Money Laundering (AML) compliance requirements. In traditional transaction flows, institutions often adopt a “receive first, check later” model, where AML screening is performed only after funds have arrived. If a non-compliance behavior is detected, the institution must initiate a complex refund process, and in some cases, may even have to deactivate the entire receiving wallet, significantly increasing operational costs and risks.

Specifically, when an institution receives a transfer and an on-chain analysis tool flags the source of funds as suspicious or linked to high-risk activities, the transaction becomes problematic. The institution must then begin the refund procedure, re-communicate payment details with the counterparty, and execute the entire transfer process again. It is not only cumbersome and time-consuming but can also introduce new errors and risks due to repeated information exchanges.

AML compliance is a critical and non-negotiable part of financial transactions. It is a key focus of regulators and a market demand for higher asset security, ultimately aimed at ensuring long-term business sustainability. To address this, Safeheron Connect integrates pre-transaction AML compliance monitoring, assessing counterparty address risk in real-time, and alerting users to potential threats.

Safeheron Connect further empowers institutions to customize incoming funds approval workflows, allowing them to conduct a comprehensive assessment and risk analysis of a transaction’s source before the funds actually arrive. This fundamentally blocks suspicious funds from sources. Crucially, all transactions are processed within a Trusted Execution Environment (TEE), creating a technologically enforced barrier. Once the incoming funds approval feature is enabled, the system mandates that every incoming transaction must pass the pre-set approval workflow to proceed.

For example, when an OTC desk receives funds from an institutional client, it can leverage Connect’s built-in AML detection and multi-level incoming funds approval feature. This deeply integrates compliance checks into the business workflow, creating a technologically enforced safety net and providing dual protection—both technical and procedural—for the institution’s asset security and compliant operations.

Improper Address Management: A Hidden Risk to Fund Security

As a business scales, departments multiply, and the number of collaborators grows, corporate governance becomes more complex, demanding stricter attention to detail. In this context, if a counterparty has updated their receiving address for security or management reasons, but the payer uses an outdated address, funds could be mistakenly sent to an abandoned or compromised wallet (e.g., one targeted by an address poisoning attack). Such misdirected funds are often impossible to recover, especially if the old wallet has been deprecated or its private keys are lost.

If a wallet address becomes risky through malicious transactions (e.g., links to darknet markets or sanctioned entities), the associated funds could face the risk of being frozen, creating severe compliance liabilities for the institution. Resolving these wallet compliance issues is not only time-consuming and resource-intensive but may also require professional blockchain forensic services, further increasing operational costs and risk management difficulties.

What kind of transaction mechanism can fundamentally solve these risks? The Safeheron Connect Profile mechanism offers a simplified solution for institutional wallet address management through a highly efficient “semi-automated” process. With this system, the receiving party only needs to update their wallet address once in their profile. They do not need to notify any of their counterparties, eliminating dependence on the counterparty’s address management systems.

When a transaction occurs, the Trusted Execution Environment (TEE) automatically performs its verification function, ensuring that every payment is accurately directed to the recipient’s currently bound, up-to-date wallet address. This mechanism not only dramatically reduces the complexity of address management but also technologically eliminates the risk of asset loss due to outdated addresses. It builds a robust security barrier for B2B crypto transactions. For instance, a payment service provider can create different Connect profiles to engage with various partners, allowing them to segregate funds by purpose across multiple wallets and flexibly update the underlying wallet addresses based on business and security needs.

Common Web3 Transfer vs Safeheron Connect

Based on the in-depth analysis of the four scenarios above, Safeheron Connect offers the following core advantages over common crypto transfers:

Safeheron Connect: Just Like PayPal, But for Crypto Payments

Safeheron Connect reshapes the institutional crypto transfer with its innovative “Connect profile” system, much like PayPal simplified internet payments by replacing bank account numbers with email addresses. Institutions can create exclusive profiles containing their identifying information to be used as the receiving method in business contracts, transforming anonymous, address-based transactions into a trusted, identity-based institutional network. 

The flexible address management mechanism allows recipients to update their wallet addresses at any time without notifying payers—a design uniquely suited to the needs of blockchain transactions while eliminating the cumbersome processes associated with address changes.

Safeheron’s TEE technology builds a three-layered trust guarantee:

• Trusted Connect Profiles: Through cryptographic verification, the system technically prevents any unauthorized party from tampering with or forging profile data, ensuring the data confidentiality and integrity.
• Trusted Institutional Connection: Before establishing a partnership, strict mutual authentication is performed to ensure the authenticity and security of the connection between institutions. The verified connection data is then stored in an encrypted format, eliminating the risk of man-in-the-middle attacks.
• Trusted Connect Transaction Signature: The system provides holistic, trustworthy verification for every transaction. This includes checking connection status validity, ensuring address consistency, confirming the execution of pre-set transaction policies, and verifying the completion of the incoming funds approval process. This is finally cross-verified against the transaction data validated by Safeheron’s MPC nodes involved in the signing computation, achieving the highest level of transaction security without sacrificing efficiency.

Safeheron Connect also introduces an inbound approval mechanism, offering a more proactive risk defense strategy compared to PayPal’s post-transaction dispute resolution. The recipient can review transaction details and perform AML checks before the funds are actually transferred, effectively mitigating the risks associated with the irreversibility of blockchain transactions. The platform also provides enterprises with a robust address verification system and complete logs, better enabling institutional users to participate in the crypto economy securely and compliantly.

The New Landscape of the Stablecoin Market: Security and Compliance as the Foundation for Sustainable Growth

With a clarifying regulatory landscape, stablecoins are rapidly entering the mainstream. The ecosystem is showing unprecedented vitality, attracting a wave of new participants eager to establish their foothold. However, regardless of market conditions—bull or bear—fund security and compliance remain the bedrock of sustainable growth for any stablecoin business. This requires all participants to prioritize these fundamentals from day one.

As the market scales and regulations tighten, building a trusted framework for collaboration that upholds strict compliance while fostering innovation has become critical. Safeheron looks forward to partnering with more stablecoin ecosystem participants, helping institutions build robust operational systems to navigate this complex and dynamic market. We aim to empower them to seize strategic opportunities securely and compliantly, ensuring a path to healthy, sustainable growth.