Auto Conversion Rules

Auto Conversion Rules allows users to automatically convert funds between fiat and stablecoins or stablecoin and stablecoins based on predefined instructions. Once configured, 1Money executes conversions in real time as funds are received, removing the need for manual trading or operational intervention.

When selecting the destination to convert the funds to, user can specify an external bank or wallet account or simly holding balances on 1Money platform, enabling seamless movement across fiat and supported stablecoins (and vice versa) according to the user’s preferences.

1. Key Concept

1.1 What is an Auto Conversion Rule?

An Auto Conversion Rule is a user-defined instruction that specifies:

Source Asset: The incoming currency/asset and its network (e.g., USD via US_FEDWIRE, USDC on Base)
Target Asset: The destination currency/asset and its network or 1Money platform balance (e.g., USDC on Base, USD via US_FEDWIRE, 1Money balance)
Destination: Where converted funds should be sent (external bank account, external wallet, or held on 1Money platform)
Local Payment Code (conditionally required): Country- and rail-specific payment purpose for crypto → fiat payouts (destination.code)
Payout Memo (optional): Bank remittance memo on crypto → fiat payouts to an external account (destination.memo)

2. How It Works

Users define auto conversion rules that specify:
1. Source asset or currency on specific network (e.g., USD via US_FEDWIRE, USDC on Base)
2. Target asset or currency on specific network or on 1Money platform (e.g., USDC on Base, USD via US_FEDWIRE, 1Money balance)
When funds meet the rule conditions, 1Money automatically executes the conversion and updates the user’s portfolio balance.
User receives a webhook when auto conversion rules are executed

2.1 Deposit Identification by Conversion Type

2.1.1 Fiat → Crypto: Reference Code

For fiat deposits (ACH, Wire, SWIFT), each Auto Conversion Rule is assigned a unique reference_code.

Step-by-step process:

User creates a Fiat → Crypto Auto-conversion Rule
System generates a unique reference_code for this rule
User retrieves the reference_code via the Retrieve Auto Conversion Rule API
Payer includes the reference_code in the bank transfer reference/memo field
Banking partner processes the transfer and forwards deposit information to 1Money
1Money matches the reference_code to the corresponding rule
System executes the conversion and credits the target asset
User receives a webhook notification upon completion

Why reference_code is required:

In different scenarios, users may have different expectations for deposits.

In some cases, users simply want to make a standard deposit and have the funds credited to the platform.

In other cases, users want to enable auto-conversion, meaning the funds are automatically converted into crypto after the deposit, and they may also want to proceed with a withdrawal.

To distinguish between these scenarios, we ask users to provide a reference_code when making a deposit. This is because a user may create multiple auto-conversion rules, and each reference_code corresponds to a specific auto-conversion rule.

If a reference_code is provided and it matches the one required by a particular auto-conversion rule, then once we receive the deposit instruction, we will mark the deposit as being created for that specific auto-conversion rule. The deposit will then follow the instructions defined by that auto-conversion rule.

1Money does not directly accept fiat deposits; all fiat deposits flow through third-party banking partners. When the banking partner forwards deposit information to 1Money, the reference_code provides the linkage between the bank transfer and your specific auto-conversion rule.

Multiple Rules:

A user may create multiple fiat-based auto-conversion rules. Each rule has its own unique reference_code, allowing you to route different deposits to different conversion paths.

2.1.2 Crypto → Fiat: Dedicated Wallet Address

For crypto deposits, each Auto Conversion Rule is assigned a unique, dedicated deposit wallet address.

Step-by-step process:

User creates a Crypto → Fiat Auto Conversion Rule
System generates a unique deposit wallet_address for this rule
User retrieves the wallet_address via the API
Sender transfers crypto to the dedicated wallet address
1Money automatically detects the deposit and identifies the corresponding rule
System executes the conversion and sends fiat to the configured destination
User receives a webhook notification upon completion

Seamless Experience:

The wallet address itself serves as the identifier — no additional reference code is required for crypto deposits.

2.2 Payout Memo (Crypto → Fiat)

For crypto → fiat rules that withdraw to an external bank account, you can set an optional destination.memo when creating the rule. That memo is sent with every automatic payout produced by the rule (the remittance / reference field on the bank transfer).

Behavior:

Applied only when destination.external_account_id is set (crypto → fiat bank payout)
Normalized on create: accents are folded, characters outside A-Z a-z 0-9 and /?:().,'+- are removed, then length is capped by rail (80 for ACH, 140 for WIRE / SWIFT)
The value returned on retrieve is the normalized memo the bank will receive
If memo is sent on a destination that cannot deliver it to a bank (conversion-only hold, crypto wallet destination, or fiat → crypto rules), it is ignored

Example (create body excerpt):

{
  "source": { "asset": "USDC", "network": "ETHEREUM" },
  "destination": {
    "asset": "USD",
    "external_account_id": "381b013e-8893-11f0-b308-2eaa4f6974f2",
    "memo": "Settlement 2026-08"
  }
}

2.3 Local Payment Code (Crypto → Fiat)

Some countries and payout rails require a local payment purpose code. For a crypto → fiat rule that withdraws to an external bank account, select the applicable canonical value from the Local Payment Code guide and submit it as destination.code.

The field is conditionally required: 1Money validates it against the destination account's actual country and payment rail. A missing, blank, or unsupported code is rejected when that route requires one. Do not send destination.code for conversion-only rules or crypto wallet destinations.

Example (create body excerpt):

{
  "source": { "asset": "USDC", "network": "ETHEREUM" },
  "destination": {
    "asset": "USD",
    "external_account_id": "381b013e-8893-11f0-b308-2eaa4f6974f2",
    "code": "cn_swift_cstrdr"
  }
}

3. Common Use Cases

Automatically convert USD deposits into stablecoins for on-chain settlement.
Convert stablecoin receipts back to USD for treasury or payouts.
Enable instant merchant settlement without exposing end users to FX or crypto complexity.
Support payroll, remittances, or platform balances with predictable asset formats.
Power embedded finance and platform / agency / B2B2C models.

4. Example Scenario

A platform configures an Auto Conversion rule to convert all incoming USD deposits into USDC.

A payer sends USD to the user’s virtual account.
Funds are credited to the portfolio.
1Money automatically converts USD to USDC based on the rule.
The USDC balance is made available for transfers, payouts, or withdrawals.

The reverse flow works the same way for stablecoin → USD conversions.