Fully fiat-reserved Stable Coin Digital Money Solution Design

Description

The Stable Coin, denominated as Digital Fully Fiat-Reserved, is available on Ethereum, Algorand, Solana, and Stellar blockchains – any chain of choice. The Stable Coin can be issued by our partner digital currency issuers, with the fiat reserves custodied, managed, and audited through regulated financial institutions and service providers in the country of choice of the issuers.

Simply, we built The Stable Coin, denominated as Digital Fully Fiat-Reserved, with three key value propositions in mind:

1. Give regulated digital asset players a local currency on-chain store of value with seamless on/off ramping for users and liquid, 24/7 connectivity to global Digital Money leaders like USDC.
2. Enable embedded instant settlement and zero-cost transaction Digital Money functionality for a wide variety of fintech solutions, including payments, supply chain finance, and Buy Now Pay Later apps.
3. Let individuals and businesses move their money locally and globally faster and connect to multiple currencies without using the antiquated Correspondent Banking system.

A key part of the value proposition of The Stable Coin, denominated as Digital Fully Fiat-Reserved, is its on-chain connectivity to global leader stablecoins and other leading Digital Moneys. Through our platform, and via partners, The Stable Coin denominated as Digital Fully Fiat-Reserved can be swapped for USDC at institutional rates with immediate settlement.

Another crucial aspect is the ability to “embed” The Stable Coin-denominated Digital Fully Fiat-Reserved and client on/off ramping functionality within existing applications in both the digital asset and traditional finance spaces.

Through our suite of Platform Finance Client APIs, applications can bypass inefficient bank solutions and harness the thoroughly modern benefits of transacting in Digital Money.

To ensure the value of The Stable Coin, denominated as Digital Fully Fiat-Reserved, remains fixed at 1 equivalent fiat in the open market, we collaborate with institutional Authorized Dealers to consistently allow the purchase or sale of the currency at a fixed rate of 1 fiat currency per stable coin, with no fees. To ensure all Stable Coin denominated as Digital Fully Fiat-Reserved issued in the market can be repurchased at the fixed 1:1 rate, the company issuing the stablecoins maintains at least 1:1 reserves in Cash and Cash Equivalents with a Qualified Custodian, who in turn holds the reserves with financial institutions.

These reserves are segregated from any other assets and are held in an “In Trust For” account on behalf of The Stable Coin holders, denominated as digitally fully fiat-reserved. To further enhance transparency, we will post monthly attestation reports to validate the volume of reserves compared to the total circulation of the stablecoin. These attestations will be performed by a Chartered Professional Accounting firm.