How It Works

What happens between an incoming transfer and the private balance.

1

A Deposit Address is generated

Each user receives a Deposit Address associated with their private balance.

The address can be shared with another person or business, or used as a withdrawal or payout destination on an exchange or payment provider.

2

The sender transfers funds normally

The sender transfers funds to the Deposit Address like any other on-chain transaction.

Nothing changes on their side. They do not need Hinkal or any special integration.

3

Hinkal screens the incoming deposit

Every deposit is screened against Chainalysis before it can enter the private balance.

This screening happens at the point of entry, before the incoming funds are combined with funds already in the private balance.

4

Eligible funds move into the private balance

If the deposit passes screening, it is automatically shielded into the user's private balance.

No additional action is required from the sender or recipient.

5

Funds that do not pass stay outside

If a deposit does not pass screening, it does not enter the private balance.

Instead, it remains public at the Deposit Address and separate from funds that passed screening.

This also means an unsolicited transfer cannot enter the private balance simply because someone sends assets to the Deposit Address. For example, a dusting transaction that does not pass screening remains outside the private balance.

The owner can handle funds that remain at the Deposit Address through the applicable public transfer or recovery flow.

See Screening Outcomes for the different outcomes.

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After funds enter

The existing Hinkal compliance framework continues to apply after funds enter the private balance.

Deposits remain attributable through their deposit ID, and depositor addresses are continuously re-screened against Chainalysis. If a depositor is subsequently flagged, the applicable funds lose eligibility for private transfers and can only be withdrawn publicly to the original address.

For the full compliance model, see Security & Compliance → Compliance.

Hinkal performs no KYC and collects no personal information. Screening is based on wallet addresses rather than identity.