Bank-issued stablecoin for payment infrastructure
Bank-issued stablecoins through ATK provide instant settlement infrastructure for B2B payments while maintaining reserve transparency and regulatory compliance. The platform handles minting, redemption, transaction monitoring, and reserve management.
Who should read this: Treasury teams, payment operations, and financial institutions exploring blockchain-based payment rails.
Business value: Enable instant cross-border settlement, eliminate wire fees, provide real-time reserve transparency, and maintain AML/sanctions compliance.
Business challenge
Regional Bank wants to issue a USD-backed stablecoin for commercial clients to use in B2B payments, trade finance, and treasury management. They need regulatory compliance, transparent reserves, and enterprise-grade controls.
Traditional approach
How ATK solves it
Stablecoin deployment with reserve management
Regional Bank creates a stablecoin token pegged 1:1 to USD. Each token is backed by an actual dollar in a segregated reserve account. The platform tracks reserve balances and enforces that tokens cannot be minted without corresponding fiat deposits.
Enterprise client onboarding
Commercial clients complete corporate KYC/KYB verification. Their legal entities are registered with the platform, and authorized employees receive access to the treasury portal.
Minting process
When a client deposits $1 million into the reserve account, Regional Bank's operations team verifies the deposit through their core banking system. Once confirmed, the platform mints 1 million stablecoins to the client's designated wallet. The reserve ratio stays balanced by construction.
B2B payments and settlements
Clients use stablecoins for vendor payments, international transfers, and supply chain finance. Transactions settle instantly on-chain with atomic finality. Payment instructions include invoice references, purchase order numbers, and other business metadata.
Transparency and auditability
The platform provides real-time visibility into total stablecoins issued, reserve balances, and reserve ratio through the admin dashboard. External auditors can query on-chain data for reserve verification.
Note: Read-only dashboard access for external regulators requires configuration of role-based permissions and potentially custom portal development for multi-tenant access patterns.
Redemption workflows
When clients want to convert stablecoins back to fiat, they initiate a redemption request. The platform burns tokens and triggers a wire transfer from reserves to the client's bank account (via core banking integration). The reserve ratio updates automatically.
Compliance controls
Regional Bank enforces transaction monitoring, AML screening, and sanctions list checks through integrated compliance modules. Suspicious activity triggers alerts for investigation. Geographic restrictions prevent use in prohibited jurisdictions via country block lists.
Integration with existing systems
The platform's APIs integrate with Regional Bank's core banking system, treasury management platform, and accounting systems. Stablecoin transactions can appear alongside traditional banking transactions through custom portal development or API consumption by existing client interfaces.
Key capabilities
| Capability | Traditional (SWIFT) | With ATK |
|---|---|---|
| Settlement time | 3-5 days | Seconds with finality |
| Transaction fees | $25-50 per wire | Network gas fees (cents) |
| Reconciliation | Days of manual work | Real-time on-chain |
| Reserve transparency | Opaque, periodic attestations | Real-time dashboard visibility |
| Counterparty risk | Settlement lag exposure | Atomic settlement, zero lag |
| Compliance | Post-transaction monitoring | Pre-transaction validation |
Measurable outcomes
Payment speed – Cross-border B2B payments that took 3-5 days now settle in seconds with atomic finality.
Cost reduction – International wire fees are eliminated. Treasury operations costs drop because reconciliation is real-time and automated.
Transparency – Clients see reserve backing in real time through dashboards, building confidence in the stablecoin's stability.
Regulatory acceptance – Demonstrable compliance controls and transparent reserves help satisfy regulators during approval processes.
The diagram above shows the ATK stablecoin payment flow, from issuance through transaction settlement to compliance validation.
Compliance considerations
Bank-issued stablecoins operate under banking and payment regulations:
- AML/KYC verification – Corporate entity verification via OnchainID
- Transaction monitoring – Real-time screening against sanctions lists
- Geographic restrictions – Country block lists via compliance modules
- Reserve requirements – 1:1 backing enforced at mint/burn operations
- Audit trails – Every mint, burn, transfer, and compliance check recorded on-chain
For detailed compliance architecture, see Compliance & Security.
Implementation checklist
- Establish legal framework for stablecoin issuance (regulatory approval, reserve custody)
- Define stablecoin parameters (pegged currency, reserve requirements, minting policies)
- Integrate KYC/KYB provider for commercial client verification
- Configure reserve tracking and mint/burn workflows
- Set up transaction monitoring rules (AML, sanctions, geographic restrictions)
- Integrate core banking system for reserve account verification
- Configure redemption workflow and fiat settlement processes
- Deploy smart contract and conduct pilot with select commercial clients
- Set up admin dashboard for operations team and reserve monitoring
Limitations and considerations
- Regulatory approval – Bank-issued stablecoins require regulatory clearance; legal counsel should evaluate jurisdiction-specific requirements
- Reserve custody – Off-chain reserve management requires integration with core banking systems for automated verification
- Regulator dashboard access – Multi-tenant read-only access for external regulators may require custom portal development beyond base admin dashboard
Next steps
- Review SMART Protocol architecture to understand embedded compliance
- Explore Developer Documentation for core banking integration guidance
- Contact your SettleMint representative to discuss a stablecoin pilot program