Deposits to a self-hosted wallet
A self-hosted wallet (also known as a self-custody wallet) is a wallet for which the private keys are held by the user and not by the exchange or other financial institution. Examples of self-hosted wallets include Coinbase Wallet and Metamask
Pursuant to local Travel Rule regulations, you may be required to prove ownership of the self-hosted wallet that you are sending to. There are multiple ways to do this.
Sign a message with your self-hosted wallet
Popular self-hosted wallets such as Coinbase Wallet let you sign a message to prove ownership of your wallet when needed. To do this:
Connect your self-custody wallet when prompted.
Ensure the request is coming from coinbase.com.
Sign the message with your wallet to prove you own it.
Note: This option is only available for ERC-20 assets.
Small deposit test
A small deposit test (also known as a Satoshi test) is a method of verifying ownership of a self-custody wallet to comply with regulatory requirements.
Customers are prompted to send a small, randomly-generated amount of crypto from their wallet to an address generated for their Coinbase account within a certain timeframe. Once the request is completed, the wallet is marked as verified and customers can withdraw funds from their account to the wallet address. This allows customers to prove ownership of the wallet address for any kind of blockchain network, not just for EVM-compatible chains.
To complete the small deposit test:
When prompted to verify wallet ownership during the send process, select “Small deposit test.”
You’ll be asked to send a specific amount of crypto from your wallet to your designated Coinbase receiving address.
Complete the transaction, ensuring that you send the exact amount of the requested crypto (for example, 1.268 ADA instead of 1.3 ADA).
Note: This process may take time and involve gas fees depending on the network.
Confirm you’re sending the funds from the wallet address you want to verify. The wallet will need to contain the amount required for the test deposit and applicable network fees.
Once the test is complete, you’ll receive an email confirming the successful verification of your wallet.
Note: The crypto NEAR isn't currently supported for small deposit tests.