SEP-24

Key points

• SEP-24 is a Stellar network standard for deposits and withdrawals conducted by a service provider.
• The provider presents the user with its own hosted interface to guide the flow of value in or out.
• This format allows verification steps and instructions to be included without the application having to implement them directly.

What is SEP-24?

SEP-24 is one of the standardization proposals of the Stellar ecosystem. It defines how hosted deposit and withdrawal flows should work, that is, flows in which a service provider guides the user through its own interface to convert value between the network and the traditional world. Instead of the application building the entire process, it forwards the user to the provider, which takes over the handling of that specific flow.

How it works

In the hosted model, the application the user is using starts the operation and then opens an interface provided by the service provider itself. It is in this interface that the user enters data, receives instructions, and follows the steps needed to complete a deposit or withdrawal. Because the provider controls this part of the flow, it can adjust it according to its needs without requiring every application to reimplement everything.

This design has an important practical advantage: it concentrates the most sensitive steps with the provider. Flows for value in and out often involve verifications and specific instructions that vary according to rules and context. By hosting this part, the provider can carry out these steps in a controlled and up-to-date way, while the application simply forwards the user and receives the result. This simplifies integration and keeps responsibility for these steps with whoever operates the service.

SEP-24 usually works together with other network standards. Initial authentication, for example, relies on the standard that proves control of the user's account, ensuring the provider knows who it is dealing with before guiding the flow. In practice, this set of standards is what allows services to connect the Stellar network to traditional payment methods in an organized way, enabling conversions between digital assets and local currency through specialized providers.

Understanding SEP-24 helps in understanding how deposits and withdrawals are conducted in a standardized way on the Stellar network.

Why it matters

Understanding SEP-24 helps in understanding how services connect the Stellar network to traditional payment methods, conducting deposits and withdrawals through hosted interfaces. For a company integrating with this network, it is a central technical piece. This is a technical concept, and it does not represent any operational recommendation.

Limitations

In the hosted model, the user depends on the provider's interface and handling, whose quality and availability directly affect the experience. Verification steps and their rules vary by provider and context. The standard is specific to the Stellar network and does not, by itself, establish legal obligations, which depend on each operator. None of this represents an operational recommendation.