Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 3

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 3
---
fortresstrust.com/licenses, with
respect to Fortress, and https://www.bitgo.com/company/licenses, with respect to BitGo. Fold does not directly hold or control
any of its customers’ digital assets.

Fold utilizes both Fortress and BitGo for the
purpose of providing operational redundancy in the event of technical or regulatory limitations at one or the other. In addition, certain
states are supported by only one of the two Bitcoin Service Providers, and those states can change from time to time based on the licensing
status of each provider.

To access Custody & Trading products,
Fold’s customers are first onboarded to the Fold app through the normal onboarding process, which includes Know Your Customer (“KYC”)
checks by Fold. Customers are then onboarded to either BitGo or Fortress based on the state they live in. Customers also undergo KYC checks
by the Bitcoin Service Provider to which they are onboarded, and they are required to accept the terms and conditions of the Bitcoin Service
Provider to which they are onboarded.

2

Once a user has been onboarded to both Fold and
the Bitcoin Service Provider, they are able to interact directly through Fold’s mobile application to buy bitcoin via spot trades,
recurring trades, direct deposits, and by rounding up spare change on Fold Card purchases, as well as the ability to deposit and sell
their bitcoin. Each of those transactions are executed by the user through Fold’s mobile app and processed via the Bitcoin Service
Provider to which the user is assigned. Refer to the following section for further details.

How Fold Users Access Fold Products and
Services

In order to access all Fold related services,
users must first download the Fold app from either the Apple or Google app store. Upon using the Fold app for the first time, users are
prompted to provide certain information for account creation and verification and to accept Fold’s user terms and conditions. Once
Fold completes a review of a user’s initial application, the user is then granted access to the Fold platform. From there, users
can utilize the following services:

Fold Pre-paid Debit Card 

●Users may apply for a Fold pre-paid debit card by selecting
the “Fold Card” tab in the Fold app and following the on-screen prompts. Once an application has been submitted, Fold utilizes
Sardine, a third-party service, to perform the required KYC and AML verification along with internal reviews completed by the Fold compliance
team when needed.

●Once a user has been approved,