Introduction

This case study applies the Double Diamond design process (Discover → Define → Develop → Deliver) to design and implement crypto Send and Receive functionality for the Desktop and Invest/React applications.

The solution operates within several key constraints:

• Identity and risk verification handled through Alloy (KYC)

• Transaction monitoring and compliance checks powered by Chainalysis and Notabene, ensuring adherence to global Travel Rule requirements

• Execution and settlement managed through Coinbase Prime APIs

• Transfer limits and thresholds defined by configurable platform rules for daily, monthly, and annual usage

Discover

Understanding the Context: Custodial vs. Self-Custodial Wallets

Before designing crypto Send and Receive functionality, it’s essential to understand how custody impacts both the user experience and compliance obligations.

• Self-custody wallets (like MetaMask or Trust Wallet) give users full control of their private keys. While this offers independence, it also carries significant risk: losing access to a key means permanent loss of funds.

• Custodial wallets (like those offered by Coinbase, PayPal, or Revolut) hold assets on behalf of users. They provide convenience and integrated compliance checks but require strong trust in the provider’s security and governance.

For IG’s crypto solution, a custodial model via Coinbase Prime was selected. This reduces user friction, simplifies onboarding, and ensures compliance with KYC/AML and Travel Rule regulations.

Goals

• Understand compliance guardrails: KYC tiers, AML risk checks (Chainalysis), Travel Rule (Notabene), and ID verification (Onfido)

• Map where users expect to access Send/Receive across Desktop and Invest/React apps

• Minimize friction while safeguarding against financial crime

• Benchmark best practices to prevent network mismatches, failed transfers, and onboarding drop-offs

Competitor and Industry Research

(secondary research due to no direct user testing)

Sources:
Public UX patterns from Coinbase, Binance, Kraken, Gemini, FATF guidance, Chainalysis reports, Reddit forums, and Coinbase developer docs.

Key Findings:

1. Fee transparency builds trust; hidden or changing fees drive churn.

2. Multi-network confusion (e.g., sending ETH on wrong chain) is a major risk — exchanges prevent this with strong network validation and warnings.

3. Inline compliance (Travel Rule, KYC) reduces drop-offs compared to separate flows.

4. Tiered onboarding (KYC tiers) motivates users if benefits are immediate.

5. Visible limits and instant notifications increase user confidence.

6. MFA and known-address whitelisting are now baseline security expectations.

Synthesis

From secondary research and industry analysis:

• Users expect zero or clearly stated fees, visible limits, real-time feedback, and instant notifications.

• Wrong-network transfers are one of the most damaging UX failures — clear copy, confirmation prompts, and visual safeguards are non-negotiable.

• Compliance layers (KYC tiers, Chainalysis risk checks, Travel Rule) should be embedded directly into the flow, not handled as external interruptions.

• Transparency and empathy are key: friction is acceptable if users understand it’s for their protection.

Define

Problem Statements

1. Friction vs. compliance: Users need a simple, intuitive way to send and receive crypto — but the experience must remain compliant with KYC, AML, Travel Rule, and transaction limit requirements.

2. Network confusion: Multi-network assets (e.g., ETH, USDC) cause user errors and irreversible fund losses when the wrong network is chosen.

3. Regulatory precision: Every transfer must capture and verify sender and recipient identity information to meet Travel Rule obligations without creating user friction.

Objectives (Success Criteria)

• Secure enablement: Deliver compliant Send and Receive features for eligible users across Desktop and Invest/React apps.

• Speed to success: Ensure time-to-first-successful-transfer for a newly verified user (post-KYC) meets target threshold (TBD).

• Zero compliance incidents: No unanticipated regulatory or AML escalations in Drop 1 (high-risk clients remain blocked).

Prioritized Scope – Drop 1

• Platforms: Implement Send & Receive on Desktop and Invest/React.

• User gating:

  • Alloy for KYC risk verification.

  • Onfido for liveness and document capture.

  • High-risk users → flows hidden.

  • Tier 0 users → disabled CTAs prompting onboarding.

• Compliance integrations:

  • Notabene SafeConnect for Travel Rule (Deposit & Withdrawal Assist).

  • Chainalysis KYT for pre-transfer address screening and risk scoring.

• Limit management: Enforce configurable limits via IG’s limit service (formerly IGIP); include link to full limit details.

• Notifications: Email + Push for Pending, Completed, and Failed transfers.

Develop