Smart Deposit Address

A smart deposit address is a general term for a crypto deposit address that is linked to software logic rather than being a simple standalone wallet. The usual purpose is to give each customer or invoice its own wallet address, so that an exchange, merchant or payment processor can tell who sent which funds, and then to move incoming coins automatically into a central wallet for safekeeping, a process often called sweeping. On Bitcoin this is commonly done with a hierarchical deterministic wallet that derives a fresh address for every user. On Ethereum and similar chains, services can use small smart contracts at precomputed addresses that forward deposits to a main account, which avoids keeping a separate private key for each customer. The term is used by individual vendors in different ways, so readers should check how a specific service defines it. Also see custodial crypto.