How to issue a deposit token (Digital deposit certificates)
Transform traditional certificates of deposit into programmable digital assets with automated yield distribution, vault custody, and instant settlement. This guide walks treasury teams through configuring and operating tokenized CD products.
Who should read this: Treasury operations teams at banks, credit unions, and deposit-taking institutions exploring blockchain infrastructure for CD products.
Time required: 15-20 minutes for initial deployment; ongoing operations managed through automated workflows.
Prerequisites:
- Completed Getting started onboarding
- Deposit system factory deployed during onboarding
- Denomination asset (payment token) deployed or address available
- Deposit terms defined (term length, interest rate, early withdrawal penalties)
- Banking license or deposit-taking authorization
Why banks tokenize certificates of deposit
Traditional CD operations burden treasury teams with manual interest calculations, maturity tracking in spreadsheets, and coordination across fragmented core banking systems. A 12-month CD portfolio requires manual intervention at issuance (calculating interest), monthly for accrual reconciliation, and at maturity for principal repayment—each touchpoint introducing calculation errors and operational delays.
Tokenized CDs shift this burden to protocol-layer automation. Interest accrues on-chain according to configured rates, maturity dates trigger automated redemption workflows, and vault custody eliminates manual coordination between deposit operations and payment processing teams. The result: 85-95% reduction in operational costs and zero calculation errors across the deposit lifecycle.
DALP vault architecture provides an additional advantage traditional systems cannot match: atomic delivery-versus-payment settlement. When a depositor purchases a CD, the platform locks payment tokens in a vault and mints deposit tokens in a single transaction—eliminating settlement risk entirely. At maturity, the redemption reverses this flow atomically: deposit tokens burn while principal plus interest transfers to the holder simultaneously.
This guide walks you through deploying a compliant deposit token, configuring yield automation, and operating the full lifecycle from subscription through maturity processing.
Navigate to deposit creation
From the main dashboard, select Asset Management > Deposits > Create New Deposit Token.
The deposit creation wizard guides you through configuration sections: basic token parameters, term structure, yield settings, early withdrawal rules, subscription mechanics, compliance framework, and operational role assignments. Each section builds on DALP vault and automated yield capabilities to eliminate manual spreadsheet tracking.
Deposit issuance workflow
The following diagram illustrates the complete deposit issuance process from initial configuration through deployment and activation:
Configure deposit parameters
Basic token information
Deposit tokens follow standard ERC20 naming conventions with treasury-specific guidance. Choose names that encode maturity period and term length for portfolio management clarity.
Token name: Include term and maturity
period—FirstBank 12-Month CD January 2026 clarifies product lifecycle at a
glance across your CD portfolio dashboard.
Token symbol: Use compact representations encoding term and
maturity—FB12M-JAN26 balances readability with DeFi ecosystem compatibility.
Decimals: Choose 0 for institutional whole-certificate products ($1,000 minimum increments) or 18 for fractional retail deposits enabling micro-denominations.
Initial supply: Set to 0 for CDs minted on-demand during subscription processing; alternatively pre-mint a fixed pool for first-come-first-served allocation.
The platform validates these parameters against regulatory constraints—deposit token names cannot contain misleading insurance claims, and symbols must remain unique across your deployed asset portfolio to prevent DeFi integration conflicts.
Term structure and maturity mechanics
CD term configuration determines interest calculation methodology, maturity date computation, and early withdrawal penalty structures. Your choices here cascade through every downstream workflow—subscription processing, interest accrual, maturity redemptions.
Term length economics
| Term | Typical APR | Use case | Penalty structure |
|---|---|---|---|
| 3-month | 2.5-3.5% | Short-term liquidity parking | 90 days interest forfeiture |
| 6-month | 3.0-4.0% | Seasonal cash management | 120 days interest forfeiture |
| 12-month | 3.5-4.5% | Annual treasury planning | 180 days interest forfeiture |
| 24-month | 4.0-5.0% | Long-term rate lock | 365 days interest forfeiture |
| 36-month | 4.5-5.5% | Multi-year reserves | 540 days interest forfeiture |
Term length sets deposit duration in days. The platform calculates maturity date automatically: issue date plus term length, with optional business day adjustments when maturity falls on weekends or banking holidays.
Why it matters: Longer terms demand higher APRs to compensate depositors for liquidity lockup, but reduce rollover operational burden. A bank issuing 3-month CDs processes maturity workflows 4× per year per depositor; 12-month terms reduce this to annual processing, cutting operational costs by 75% while offering competitive yields.
Business day adjustment: Enable this when your treasury operates on traditional banking calendars. Maturity redemptions scheduled for Saturday auto-shift to the following Monday, aligning on-chain settlement with back-office availability.
Interest rate configuration
Yield settings drive automated interest accrual and maturity proceeds calculation. The platform supports simple interest (at maturity) and compound interest (periodic) methodologies—choose based on competitive positioning and regulatory disclosure requirements.
Annual percentage rate (APR): Enter as basis points for precision—4.0% APR becomes 400 basis points. The platform enforces consistency across UI displays and smart contract storage, eliminating human error during rate updates.
Compounding frequency: Simple interest suits institutional CDs with lump-sum maturity payouts; monthly/quarterly compounding attracts retail depositors expecting periodic interest credits. Compound interest increases effective yield:
- Simple: $10,000 at 4% for 12 months = $10,400 at maturity
- Monthly compound: $10,000 at 4% compounded monthly = $10,407.42 at maturity
Interest payment method: Choose at maturity for CDs where principal plus interest pay out as a lump sum, or periodic distribution for institutional products requiring quarterly interest transfers to operating accounts. Periodic distribution requires vault funding for each payment date; at-maturity requires single funding event before maturity processing.
Rate table example:
| Configuration | Result | Vault funding requirement |
|---|---|---|
| $1M deposits, 4% APR, 12-month, simple | $40,000 interest liability | Fund $1.04M before maturity |
| $1M deposits, 4% APR, 12-month, quarterly distribution | $10,000 per quarter | Fund $10K quarterly + $1M at maturity |
| $500K deposits, 5.5% APR, 24-month, simple | $55,000 interest liability | Fund $555K before maturity |
The platform calculates these obligations automatically and displays funding requirements on the Payments dashboard—treasury teams monitor vault balance versus upcoming liability in real time, receiving alerts when reserve ratios drop below configured thresholds.
Denomination asset selection
Specify the ERC20 token representing deposit currency. Most institutional deployments use USDC or USDT for regulatory clarity and deep liquidity; some deploy custom institutional stablecoins for closed-loop treasury ecosystems.
Enter the denomination asset contract address. The platform validates:
- Contract exists at provided address
- Implements ERC20
decimals()function - Decimals match configured deposit token decimals (or scaling factor documented)
Why it matters: Denomination asset choice determines DvP settlement mechanics, fiat bridge integration requirements, and depositor onboarding friction. USDC benefits from established Circle banking partnerships for fiat on-ramps; institutional stablecoins offer tighter custody control but require custom bridge infrastructure.
When a depositor purchases a CD, they transfer denomination assets to the platform vault; at maturity, the vault transfers principal plus interest back in the same denomination. This atomic swap eliminates settlement risk inherent to traditional systems where deposit liability and payment processing operate across disconnected ledgers.
Early withdrawal configuration
Early withdrawal rules balance depositor flexibility with treasury liquidity management. Penalties discourage pre-maturity redemptions that disrupt funding cost models, but overly restrictive terms harm competitive positioning versus liquid savings products.
Penalty economics
Banks price early withdrawal penalties to recover opportunity cost when depositors break fixed-rate commitments. The platform automates penalty calculation, redemption processing, and vault settlement based on configured rules.
Penalty structures:
| Penalty type | Calculation | When to use | Example |
|---|---|---|---|
| Interest forfeiture | Days × APR | Standard retail CDs | 180-day penalty on 12-month CD = forfeit 6 months interest |
| Principal percentage | Principal × % | High-yield promotional CDs | 2% principal penalty = $200 on $10,000 deposit |
| Fixed fee | Flat amount | Small-denomination retail | $25 penalty regardless of balance |
| Hybrid | Greater of interest or principal % | Institutional CDs | Greater of 1% principal or 90 days interest |
Grace period: Optionally allow penalty-free withdrawal during initial days after issuance—grace periods suit promotional "trial" CDs or satisfy cooling-off regulations in certain jurisdictions. Set to 0 for standard institutional products.
Withdrawal restrictions: Choose allowed for standard CDs with automated penalty assessment, restricted when early withdrawal requires manual treasury approval (institutional products with negotiated terms), or prohibited for locked products with zero pre-maturity liquidity.
Why automation matters: Traditional CD early withdrawal processing requires manual interest calculation, penalty assessment, core banking coordination, and customer communication—typically 15-30 minutes per request. The platform executes this workflow atomically: customer submits request via dApp, platform calculates penalty, burns deposit tokens, and transfers net proceeds in a single transaction. Treasury teams review requests in batches rather than handling each individually.
Early withdrawal workflow narrative
When a depositor requests early withdrawal, the platform calculates accrued interest from issue date to withdrawal date, applies configured penalty rules, and computes net proceeds. Treasury operators review pending requests on the Withdrawals dashboard:
- Principal: $10,000
- Days held: 137 days of 365-day term
- Accrued interest: $150 (137/365 × 4% × $10,000)
- Penalty: 180 days interest = $197 (180/365 × 4% × $10,000)
- Net proceeds: $10,000 + $150 - $197 = $9,953
Approve the request. The platform burns deposit tokens from the customer address, transfers $9,953 from the vault to the customer, and records the withdrawal event in audit logs—all atomically. The entire process takes 30 seconds versus 15-30 minutes in traditional systems.
Configure subscription mechanics
Deposit tokens use subscription-based issuance: depositors submit purchase requests, treasury operators approve after verifying payment, and the platform mints deposit tokens recording issue date and maturity.
Minimum deposit and increments
Minimum deposit: Set based on target customer segment and operational efficiency. $1,000 minimums suit retail CDs; $100,000 minimums target institutional treasury desks. The platform enforces minimums during subscription validation—requests below threshold auto-reject with explanatory messages.
Deposit increments: Define allowable denomination steps—$100 increments for retail flexibility, $10,000 increments for institutional round-lot processing. Increment enforcement eliminates fractional-cent rounding errors that plague traditional systems during interest calculations.
Maximum deposit: Optionally cap per-depositor exposure. $250,000 maximums align with FDIC insurance limits for US banks; regulatory frameworks in other jurisdictions specify different thresholds. The platform validates aggregate depositor holdings across all maturities when processing subscriptions—preventing single depositors from exceeding insurance caps even across multiple CD series.
Why these constraints matter: Traditional systems track deposit limits through manual account aggregation queries against core banking databases. Tokenized infrastructure encodes limits as protocol rules: subscription processing automatically queries the depositor's total holdings via the unified identity registry and rejects over-limit requests instantly. This eliminates "over-limit" scenarios discovered during manual audit, where depositors exceed FDIC coverage without real-time detection.
Subscription period and settlement
Opening date: When customers can begin purchasing CDs. Set to immediate for evergreen products or future dates for scheduled offerings (e.g., "January 2026 CD Series opens December 15, 2025").
Closing date: Last day to purchase from this series. Leave blank for continuous offerings with rolling maturities; set specific dates for fixed-pool allocations where total issuance caps at a target amount.
Continuous offering: Enable this for standard CD products where the bank issues deposits on-demand as customers subscribe. Disable for limited-allocation institutional products or promotional CDs with fixed pool sizes.
Settlement timing: Choose T+0 (instant settlement), T+1 (next business day), or T+2 (two business days) based on back-office funding workflows. T+0 suits blockchain-native operations where payment token transfers occur instantly; T+1/T+2 align with traditional ACH timelines for banks transitioning from legacy systems.
DvP mechanics: When a customer submits a subscription request, they transfer payment tokens to the funding wallet address. Treasury operators review pending requests, verify payment receipt, and approve. The platform mints deposit tokens, records issue date (determines maturity), and updates total outstanding deposits—all atomically. Payment tokens remain in the vault custody until maturity redemption or early withdrawal.
This delivery-versus-payment flow eliminates settlement risk: either both legs complete (payment received AND deposit tokens issued) or neither completes. Traditional systems introduce risk windows during the coordination gap between payment processing and deposit account creation.
Allocation methods
First-come-first-served: Deposits mint on-demand as subscriptions arrive. Suitable for standard retail CD products with no issuance caps. The platform processes subscriptions in arrival order, ensuring fairness without manual queue management.
Fixed allocation: Specify total deposit pool size (e.g., $10 million total issuance cap). The platform tracks remaining allocation and rejects subscriptions once pool exhausts. Optionally enable pro-rata allocation if total subscription demand exceeds pool size—the platform automatically scales each request proportionally and refunds excess payments.
Timed issuance: Batch subscriptions for processing on specific dates (e.g., first Monday of each month). Treasury teams review the month's accumulated requests in a single session rather than continuous processing, reducing operational overhead while maintaining predictable workflows.
When to use each: Continuous first-come-first-served suits established CD products with predictable demand; fixed allocation targets promotional offerings where marketing campaigns drive surge demand; timed issuance optimizes operational efficiency for teams managing dozens of concurrent asset products.
Set compliance framework
Deposit tokens enforce banking regulations through protocol-layer identity verification and transfer restrictions. Choose a regulatory framework template—the platform pre-configures compliance modules with appropriate rule sets, then allows customization for jurisdiction-specific requirements.
Regulatory framework selection
The platform offers compliance templates encoding common deposit-taking regulatory regimes. Select the framework matching your banking license and depositor jurisdiction.
Framework comparison
| Framework | Jurisdiction | Insurance cap | Transfer limits | Identity requirements | Reserve rules |
|---|---|---|---|---|---|
| FDIC | US banks | $250k per depositor | Reg D: 6/month from savings | SSN or TIN | Federal Reserve Reg D |
| EU DGS | EEA banks | €100k per depositor | SEPA compliance | EU identity verification | CRD IV capital rules |
| Reg D only | US (non-deposit) | None | 6/month limit | Accredited investor | None |
| BSA/AML | US universal | N/A | CTR for >$10k | CIP verification | None |
| Custom | Any | Configurable | Configurable | Configurable | Manual monitoring |
FDIC Insurance: US banks offering insured deposits. The platform enforces $250,000 per-depositor aggregate limits across all CD series and deposit products, automating insurance cap tracking that traditionally requires manual account aggregation queries.
EU Deposit Guarantee Scheme: European banks subject to Directive 2014/49/EU. €100,000 per depositor per institution, with platform validation during subscription processing.
Regulation D: Federal Reserve transfer restrictions on savings deposits (historically limited to 6 convenient transfers per month). The platform tracks transfer counts per depositor but does not auto-enforce monthly limits—treasury teams monitor via compliance dashboard and reject excess transfer requests manually. Automated enforcement planned for future release.
Bank Secrecy Act (BSA): AML requirements for US deposit accounts. The platform integrates OnchainID claim verification for Customer Identification Program (CIP) compliance and flags large transactions (>$10,000) requiring Currency Transaction Report (CTR) filing.
Custom: Build jurisdiction-specific frameworks using modular compliance components. Configure insurance caps, transfer rules, and identity requirements matching local regulations.
Why framework templates matter: Traditional compliance implementation requires engineering teams to hand-code regulatory logic across disconnected account management, transfer processing, and reporting systems—introducing bugs and regulatory gaps. DALP compliance-by-design encodes rules as protocol-layer constraints: smart contracts validate every subscription, transfer, and redemption against configured requirements before execution. Treasury teams configure rules once during deployment rather than coordinating updates across multiple systems.
Compliance module configuration
Regulatory frameworks activate specific compliance modules. Configure each module based on your operational requirements and regulatory obligations.
Depositor eligibility requirements
OnchainID claims gate deposit token acquisition and holding. Only addresses with required claims can subscribe to CDs or receive transfers. The platform validates claims at subscription time and before every transfer—ensuring continuous compliance even if claim revocation occurs post-issuance.
Required claims:
KYC/AML verification: Choose verification level:
- Level 1 (individual): Name, address, date of birth, government ID—suits retail depositors
- Level 2 (enhanced): Level 1 plus beneficial ownership, source of funds—required for high-value deposits or institutional accounts
Jurisdiction verification: Specify eligible depositor countries. US banks typically restrict to US persons; cross-border offerings require multi-jurisdiction compliance documentation.
Sanctions screening: Platform validates addresses against OFAC/EU sanctions lists via integrated screening providers. Subscriptions from sanctioned addresses auto-reject; existing holders flagged for freeze if added to lists post-issuance.
Account type: Categorize depositors as individual, joint, business, trust, or retirement account. Insurance limits and tax reporting vary by type—platform enforces type-specific rules during subscription processing.
Observability integration: The compliance dashboard displays depositor claim status in real time. Treasury teams monitor claim expiration dates and receive alerts when depositors approach renewal deadlines—preventing scenarios where maturing CDs cannot redeem due to expired identity verification.
Transfer restrictions
Configure secondary market transferability based on regulatory requirements and product design.
Regulation D compliance: Enable transfer approval requirements when Reg D applies. Each transfer request queues for treasury operator review; approvals execute instantly while rejections notify the requestor with explanatory messages.
Assignability: Choose freely transferable (standard), transfer-restricted (requires approval), or non-transferable (prohibited until maturity). Non-transferable CDs eliminate secondary market liquidity but simplify regulatory compliance for banks avoiding securities classification.
Monthly transfer limits: The platform tracks transfer counts per depositor per calendar month. Configure alert thresholds (e.g., warn at 5 transfers, notify compliance team at 6) but note that automatic monthly limit enforcement is not yet implemented—treasury teams review dashboards and manually reject excess requests. Automated enforcement targeting next major release.
FDIC insurance coordination: The platform validates per-depositor aggregate holdings across all CD series during subscription, but does not track insurance allocations across multiple institutions or account ownership structures (e.g., revocable trusts, retirement accounts with separate coverage). Treasury teams must monitor these scenarios manually using compliance reporting tools. Full insurance tracking automation planned for future development.
Why protocol-layer compliance beats middleware
Traditional deposit systems implement compliance as middleware between core banking and account management—introducing coordination delays, rule synchronization bugs, and audit gaps when subsystems diverge. A depositor might pass KYC in the CRM but fail transfer restrictions in the core banking module if updates propagate slowly.
DALP compliance-by-design encodes rules in smart contracts governing token transfers. Every subscription, transfer, and redemption executes compliance checks atomically—validation and settlement occur in the same transaction. This eliminates race conditions where compliance status changes between check and execution, a common failure mode in distributed legacy architectures.
Assign operational roles
Deposit operations require segregated roles preventing privilege escalation while enabling efficient workflows. The platform implements role-based access control (RBAC) at the smart contract level—only addresses with appropriate roles can execute privileged functions.
Role assignments and permissions
GOVERNANCE_ROLE: Treasury product management
- Configure deposit terms, interest rates, maturity parameters
- Update compliance settings and regulatory framework
- Modify early withdrawal rules and penalty structures
- Adjust subscription periods and allocation methods
Assign to: Treasury operations multisig wallet (recommended 2-of-3 or 3-of-5 threshold)
SUPPLY_MANAGEMENT_ROLE: Deposit issuance and redemption
- Mint deposit tokens during subscription approval
- Burn deposit tokens during maturity processing or early withdrawal
- Execute batch operations for efficiency
- Process rollover renewals
Assign to: Deposit operations multisig wallet (recommended 2-of-3 threshold for dual control)
CUSTODIAN_ROLE: Account administration
- Freeze compromised depositor addresses (fraud, court orders)
- Execute forced transfers (estate settlements, legal judgments)
- Recover deposits from lost private keys (with legal documentation)
- Unfreeze addresses after incident resolution
Assign to: Custodian services or legal compliance multisig wallet
EMERGENCY_ROLE: Crisis intervention
- Pause all transfers during security incidents
- Halt new subscriptions during system maintenance
- Enable emergency early redemption during bank run scenarios
- Unpause after incident resolution
Assign to: Risk management multisig wallet with documented emergency procedures
Why multisig matters: Single-key wallets introduce catastrophic key compromise risk—if an operations laptop is compromised, attackers can mint unlimited deposit tokens or drain vaults. Multisig wallets require M-of-N signatures, distributing key custody across multiple secure hardware devices and personnel. A 2-of-3 SUPPLY_MANAGEMENT_ROLE configuration means deposit minting requires two operators' signatures, preventing rogue employee attacks while maintaining operational efficiency.
Operational workflow: Treasury operators collaborate using multisig coordination tools. When processing subscription batches, operator A initiates the batch mint transaction, operator B reviews pending subscriptions and approves, and the transaction executes only after both signatures confirm. This enforces dual control without manual coordination overhead.
Review and deploy
Before deployment, verify configuration against product documentation and regulatory requirements. The platform displays a comprehensive pre-deployment summary consolidating all parameters.
Pre-deployment verification:
- Token parameters: Name, symbol, decimals match product documentation
- Term structure: Length and maturity calculation align with marketing materials
- Interest configuration: APR, compounding frequency, payment method match advertised terms
- Denomination asset: Validated contract address with correct decimals
- Early withdrawal: Penalty rules match deposit agreement disclosures
- Subscription settings: Minimums, increments, and caps align with regulatory and business requirements
- Compliance framework: Selected framework matches banking license and depositor jurisdiction
- Role assignments: All roles assigned to secure multisig wallets with documented signers
The platform flags configuration conflicts automatically (e.g., 24-month term with 365-day early withdrawal penalty exceeds term length) and blocks deployment until resolved.
Execute deployment
Click Deploy Deposit Token. Review transaction details including estimated gas cost and deployment address. Enter PIN or OTP for authentication, then confirm.
Deployment sequence:
- Deploy deposit proxy contract (15-20 seconds)
- Initialize with configured parameters (10 seconds)
- Configure interest calculation module (5 seconds)
- Assign operational roles to specified addresses (5 seconds per role)
- Register with identity registry for compliance validation (10 seconds)
Total deployment time: 60-90 seconds
The platform displays real-time deployment progress with transaction hashes for audit trail documentation. Upon completion, note the contract address and navigate to the deposit details page to verify configuration.
Post-deployment configuration
Deployment creates the deposit token contract, but additional setup enables subscription processing and operational workflows.
Verify deployment
Navigate to Asset Management > Deposits and select your newly deployed deposit token. The details page displays:
- Token information: Name, symbol, decimals, contract address
- Term structure: Length, maturity date calculation, business day adjustment
- Interest configuration: APR, compounding frequency, payment method
- Compliance framework: Active modules and rules
- Role assignments: Addresses holding operational permissions
- Current status: Total deposits outstanding (initially 0), depositor count, vault balance
Verify each parameter matches intended configuration. Discrepancies indicate deployment errors requiring redeployment.
Fund payment vault
The platform maintains a dedicated vault for deposit redemptions and interest payments. Treasury teams must fund this vault before enabling subscriptions—insufficient vault balance prevents maturity processing.
Funding calculation:
Calculate total reserve requirement:
- Expected total deposits: Maximum issuance target (or estimate for continuous offerings)
- Interest liability: Total deposits × APR × (term length / 365 days)
- Reserve buffer: 10-20% cushion for early withdrawals and operational flexibility
Example funding calculation:
- Expected deposits: $1,000,000
- APR: 4%
- Term: 12 months
- Interest liability: $1,000,000 × 0.04 × (365/365) = $40,000
- Buffer (15%): $156,000
- Total vault funding required: $1,196,000
Navigate to Payments tab. Note the vault wallet address. Transfer denomination assets (USDC, USDT, etc.) to this address. The dashboard updates vault balance in real time—verify sufficient funding before enabling subscriptions.
Why funding matters: Maturity processing executes atomically: deposit tokens burn AND redemption proceeds transfer in a single transaction. If vault balance falls below required redemption amount, the transaction reverts. Traditional systems allow maturity processing to "succeed" even when payment accounts lack funds, creating reconciliation nightmares and customer complaints. DALP atomic settlement eliminates this failure mode.
Observability integration: The Vault Monitoring dashboard displays real-time metrics:
- Current balance: Denomination asset holdings in vault
- Total liability: Sum of principal plus accrued interest for all outstanding deposits
- Reserve ratio: Balance / liability (target: >100%)
- Upcoming maturities: 7-day and 30-day maturity schedules with funding requirements
- Alerts: Notifications when reserve ratio drops below configured threshold (default: 105%)
Treasury teams monitor these metrics daily, topping up vault funding proactively to maintain operational continuity.
Enable subscriptions
With vault funded, activate subscription processing.
Navigate to Settings > Subscriptions. Toggle Accept Subscriptions to enabled. Verify subscription period dates (opening and closing dates) match product launch timeline. Confirm payment wallet address displays correctly—customers transfer denomination assets to this address when submitting subscription requests.
Save changes. The deposit product is now live—customers can purchase CDs via the dApp interface.
Manage deposit lifecycle
Deposit operations follow a predictable workflow: subscriptions > interest accrual > maturity processing (or early withdrawals). The platform automates calculation-intensive tasks while providing dashboards for treasury operator oversight and approval.
Process subscription requests
Customers submit deposit purchases via the dApp: enter deposit amount, review terms and APR, transfer payment tokens to the funding wallet, and submit request. The platform validates minimum/increment/maximum rules, checks identity claims, and queues the request for treasury approval.
Subscription workflow narrative:
Navigate to Subscriptions > Pending. The queue displays customer requests with key details:
- Customer address: OnchainID-linked Ethereum address
- Compliance status: Green checkmark if all required claims valid; yellow warning if claims expire within 30 days; red X if missing required claims
- Deposit amount: Requested purchase size
- Payment status: Confirmed (payment received in funding wallet) or pending (awaiting transfer)
- Issue date: Date deposit tokens will mint (determines maturity calculation)
- Maturity date: Auto-calculated from issue date plus term length
Review each request:
- Verify compliance: Ensure customer identity claims satisfy framework requirements
- Confirm payment: Check payment transaction hash and vault balance reflects received funds
- Validate amount: Confirm deposit meets minimum, follows increments, and doesn't exceed customer's insurance limit
- Check issue date: Verify aligns with business day calendar if applicable
Click Approve Subscription. The platform executes atomically:
- Mints deposit tokens to customer address (quantity: deposit amount / denomination unit)
- Records issue date and maturity date in token metadata
- Starts interest accrual calculation
- Updates total deposits outstanding metric
- Transfers payment tokens from funding wallet to vault custody
The customer receives deposit tokens immediately, visible in their dApp wallet. Issue date determines maturity—a 12-month CD issued January 15, 2026 matures January 15, 2027.
Batch processing: Select multiple pending subscriptions and click Approve Batch for efficient processing. The platform executes a single multi-mint transaction, reducing gas costs by 60-80% versus individual approvals.
Observability integration: The subscription dashboard displays real-time metrics:
- Pending count: Requests awaiting approval
- Average approval time: SLA metric for operational efficiency monitoring
- Rejection rate: Percentage rejected due to compliance failures or payment issues
- Daily subscription volume: New deposits issued per day
- Cumulative deposits: Total outstanding principal across all maturities
Track interest accrual
Interest accrues automatically based on configured APR, compounding frequency, and payment method. Treasury teams monitor accrual to ensure vault funding remains adequate for upcoming liabilities.
Navigate to Interest tab. The dashboard displays accrual metrics:
Total accrued interest: Sum of interest earned across all outstanding deposits from issue date to current date. Updates continuously as time progresses.
Daily interest expense: Interest accruing per day across entire portfolio. Calculate as: total outstanding deposits × APR / 365.
Maturity schedule: Calendar view showing upcoming maturity dates, principal amounts, and interest liabilities. Use this to plan vault funding top-ups before large maturity batches.
Payment wallet status: Current balance versus total liability (principal plus accrued interest). Green indicator when balance >105% of liability; yellow warning at 100-105%; red alert below 100%.
Interest calculation examples:
Simple interest (at maturity):
- Principal: $10,000
- APR: 4%
- Term: 12 months
- Interest: $10,000 × 0.04 × (365/365) = $400
- Maturity proceeds: $10,400
Monthly compound interest:
- Principal: $10,000
- APR: 4%
- Term: 12 months
- Compounding: Monthly (n=12)
- Interest: $10,000 × [(1 + 0.04/12)^12 - 1] = $407.42
- Maturity proceeds: $10,407.42
The platform handles these calculations automatically, eliminating spreadsheet errors that plague traditional treasury operations. Interest accrual updates every block (approximately every 12 seconds on Ethereum mainnet), providing real-time liability tracking versus traditional systems where accrual runs nightly in batch jobs.
Why automated accrual matters: Traditional CD portfolios require manual interest calculation for each certificate at maturity, with treasury teams maintaining spreadsheets tracking issue dates, terms, rates, and compounding rules. A 1,000-certificate portfolio requires 1,000 manual calculations at maturity—each introducing potential errors. Portfolio managers report 10-15% error rates in manual interest calculations, requiring reconciliation processes that delay maturity processing by 2-5 business days.
DALP automated yield eliminates this entirely. Interest formulas execute as smart contract functions—identical calculations across all deposits, zero human error, instant results. Treasury teams review final proceeds rather than calculating them.
Process maturity redemptions
Deposits reaching maturity appear automatically in the Maturities > Ready for Processing queue. The platform identifies matured deposits daily and prepares batch redemption transactions for treasury approval.
Maturity workflow narrative:
Navigate to Maturities tab. The queue displays deposits reaching maturity:
| Depositor | Principal | Accrued Interest | Total Proceeds | Maturity Date |
|---|---|---|---|---|
| 0x742d...3f8a | $10,000 | $400.00 | $10,400.00 | Jan 15, 2027 |
| 0x8b3c...92e1 | $25,000 | $1,000.00 | $26,000.00 | Jan 15, 2027 |
| 0x1a5d...4c7b | $5,000 | $200.00 | $5,200.00 | Jan 15, 2027 |
| Total | $40,000 | $1,600.00 | $41,600.00 |
Review the batch:
- Verify vault funding: Confirm vault balance ≥ total proceeds ($41,600 in this example)
- Check maturity dates: Ensure all deposits actually matured (maturity date ≤ today)
- Validate depositor claims: Confirm all depositors maintain valid identity claims (required for redemption transfers)
Click Process Maturity Batch. The platform executes atomically:
- Calculates redemption proceeds for each deposit: principal + interest
- Burns deposit tokens from depositor addresses
- Transfers proceeds to depositors in denomination asset (USDC, USDT, etc.)
- Records maturity event in audit logs
- Updates total deposits outstanding metric
DvP settlement: Maturity processing demonstrates DALP atomic settlement. Token burn and proceeds transfer occur in a single transaction—either both complete or both revert. Traditional systems coordinate burn and payment across separate subsystems, introducing windows where one leg completes but the other fails (e.g., deposit account closed but payment not sent). This creates reconciliation nightmares requiring manual investigation and correction. Atomic execution eliminates this failure mode entirely.
Automatic processing: Enable Automatic Maturity Processing in settings to execute redemptions on maturity date without manual intervention. The platform monitors for matured deposits, validates vault funding, and processes batches automatically—reducing operational overhead to zero for standard maturity workflows. Treasury teams receive notifications of completed batches for reconciliation rather than initiating each batch manually.
Observability integration: The maturities dashboard displays:
- Upcoming 7-day maturities: Early warning for vault funding planning
- Upcoming 30-day maturities: Monthly cash flow forecasting
- Historical maturity processing time: SLA metric from maturity date to redemption execution
- Maturity processing cost: Average gas cost per redemption transaction
Handle early withdrawal requests
Customers submit early withdrawal requests via the dApp when they need pre-maturity liquidity. The platform calculates applicable penalties, computes net proceeds, and queues requests for treasury approval.
Early withdrawal workflow narrative:
Navigate to Withdrawals > Pending. The queue displays early withdrawal requests:
| Customer | Principal | Accrued Interest | Penalty | Net Proceeds | Days Held | Request Date |
|---|---|---|---|---|---|---|
| 0x742d...3f8a | $10,000 | $150.00 | $197.00 | $9,953.00 | 137 of 365 | Oct 28, 2025 |
| 0x8b3c...92e1 | $25,000 | $375.00 | $493.00 | $24,882.00 | 137 of 365 | Oct 29, 2025 |
Penalty calculation detail (first request):
- Principal: $10,000
- Issue date: Jun 13, 2025
- Request date: Oct 28, 2025
- Days held: 137 days of 365-day term
- Accrued interest: $10,000 × 0.04 × (137/365) = $150.00
- Penalty configuration: 180 days interest forfeiture
- Penalty amount: $10,000 × 0.04 × (180/365) = $197.00
- Net proceeds: $10,000 + $150 - $197 = $9,953.00
Review each request:
- Verify early withdrawal allowed: Confirm deposit terms permit pre-maturity withdrawal
- Check penalty calculation: Validate platform calculation matches configured penalty rules
- Confirm vault funding: Ensure vault balance ≥ net proceeds
- Assess discretionary factors: For manual-approval products, evaluate customer circumstances per banking policies
Click Approve Withdrawal (or Reject with explanatory note for customer notification). Upon approval, the platform executes atomically:
- Burns deposit tokens from customer address
- Transfers net proceeds to customer in denomination asset
- Credits penalty amount to vault reserves (retained by institution)
- Records withdrawal event in audit logs
- Updates total deposits outstanding metric
Batch processing: Select multiple withdrawal requests and process as a batch for efficiency.
Observability integration: The withdrawals dashboard displays:
- Pending withdrawal count: Requests awaiting treasury review
- Average withdrawal size: Portfolio metric for liquidity forecasting
- Penalty collected (MTD/YTD): Revenue from early withdrawal penalties
- Withdrawal rate: Percentage of deposits withdrawn early (portfolio health metric)
Sustained high withdrawal rates indicate competitive rate disadvantages or customer liquidity stress—treasury teams use this metric for product pricing adjustments and portfolio risk assessment.
Common workflows
Configure rollover automation
Maturing deposits often renew for additional terms rather than redeeming to cash. Rollover automation eliminates manual coordination with depositors at maturity, reducing operational overhead while maintaining deposit balances.
Navigate to Settings > Rollover Configuration before initial maturities approach. Configure:
Rollover eligibility: Choose opt-in (depositors explicitly elect rollover) or opt-out (automatic renewal unless depositor declines).
Rollover term: Same as original (12-month CD renews for 12 months) or different (upgrade to longer/shorter term).
Rollover rate: Current market rate (adjusts to prevailing APR at rollover time) or locked rate (maintains original APR).
Notification timeline: Days before maturity to notify depositors of pending rollover (typically 30 days).
Depositor election deadline: Days before maturity to submit rollover preference (typically 7 days).
Rollover workflow at maturity:
- 30 days before maturity: Platform sends notification to depositors via dApp and email (if configured) listing rollover terms and election deadline
- Depositors elect: Opt-in to rollover with new terms, or opt-out to receive redemption proceeds
- 7 days before maturity: Election period closes; platform tallies rollover vs redemption counts
- Maturity date:
- Rollover deposits: Platform updates maturity date (+12 months if same term), applies new APR if configured, maintains deposit tokens (no burn/mint), continues interest accrual
- Redemption deposits: Process as standard maturity (burn tokens, transfer proceeds)
Why rollover automation matters: Traditional CD rollovers require manual outreach to each depositor, paper forms or phone banking to collect elections, manual data entry to update core banking maturity dates, and coordination with interest calculation systems to apply new rates. This process typically requires 5-10 minutes per depositor and introduces errors when elections misrecorded or maturity updates fail to propagate.
DALP rollover automation encodes the entire workflow as smart contract logic. Depositors submit elections via dApp (cryptographically signed, tamper-proof), the platform tallies automatically, and maturity updates execute atomically on maturity date. Treasury teams monitor rollover rates via dashboard rather than executing individual renewals.
Observability integration: The rollover dashboard displays:
- Upcoming rollovers (30-day): Deposits approaching maturity with rollover potential
- Election rate: Percentage of depositors choosing rollover vs redemption
- Rollover impact: Projected deposit balance retention after maturity processing
- Historical rollover trends: Portfolio metric tracking renewal patterns over time
Adjust interest rates for new issuance
Market conditions change; competitive CD rates fluctuate. The platform enables interest rate adjustments for new deposits without affecting existing certificates.
Navigate to Settings > Interest Rate. Click Update Rate.
Enter new APR in basis points (e.g., 450 for 4.5% APR). Set effective date—typically immediate for next subscription, or future date for planned rate changes aligned with marketing campaigns.
Critical: Interest rate changes apply only to deposits issued after effective date. Existing deposits maintain original APR locked at issuance—this is a core CD product feature ensuring rate certainty for depositors.
The platform records rate change events in audit logs, displaying historical rate timeline on the deposit details page. Customers see current rate when subscribing; treasury teams track weighted average APR across portfolio for interest expense forecasting.
Process bulk institutional deposits
Institutional depositors (corporate treasury desks, fund managers) often negotiate custom terms or deposit large amounts requiring special handling. Bulk deposit processing accommodates these scenarios.
Navigate to Actions > Issue Bulk Deposit. This workflow bypasses standard subscription queue for direct issuance.
Enter:
- Customer address: OnchainID-verified institutional account
- Deposit amount: Negotiated principal (often exceeding standard maximum limits)
- Custom terms: If negotiated rate differs from standard APR, or term length varies
- Settlement reference: Wire transfer reference or payment confirmation number
Verify large payment received in vault (check transaction hash or bank wire confirmation). Click Execute Bulk Mint.
The platform mints deposit tokens directly to institutional address, recording issue date and custom terms. This bypasses subscription approval queue for efficiency while maintaining compliance validation (OnchainID claims still required).
Best practice: Use separate deposit token contracts for wholesale versus retail deposits when terms differ significantly (e.g., institutional negotiated rates vary from retail published rates). Separate contracts prevent confusion and simplify compliance reporting when regulatory frameworks differ across customer segments.
Handle unclaimed deposits (escheatment)
Deposits matured but not redeemed after extended periods trigger escheatment obligations—state laws require transferring unclaimed property to government custody for eventual reunification with owners.
Navigate to Compliance > Unclaimed Property. The platform identifies deposits matured but not redeemed after configured dormancy period (state-specific: typically 3-5 years for CDs).
Escheatment workflow:
- Identify dormant deposits: Platform flags deposits matured > dormancy period without redemption
- Attempt contact: Send notifications to depositor addresses per state due diligence requirements (certified mail, email)
- Wait for response period: State-mandated notification period (typically 60-180 days)
- If no response: Execute escheatment
- Burn deposit tokens from holder address
- Transfer proceeds (principal + interest) to state unclaimed property fund address
- File unclaimed property report with state comptroller
- Record escheatment event in audit logs
State-specific compliance: Escheatment rules vary by depositor state of residence—dormancy periods, due diligence requirements, and reporting formats differ across jurisdictions. The platform provides base workflow automation; treasury teams must configure state-specific parameters and ensure reporting format compliance.
Why this matters: Banks face significant fines for escheatment non-compliance—unclaimed property audits by states regularly uncover unreported dormant accounts. Tokenized infrastructure provides automated dormancy tracking and audit trails proving due diligence efforts, reducing compliance risk versus manual spreadsheet tracking of matured-but-unredeemed CDs.
Best practices
Before deployment:
Ensure legal and regulatory foundations support tokenized deposit operations. Verify banking license permits deposit-taking activities in blockchain infrastructure—some jurisdictions require explicit regulatory approval. Confirm denomination asset (stablecoin) qualifies as legal tender for deposit purposes per local banking regulations. Configure reserve requirements per Federal Reserve Regulation D or local equivalents. Prepare deposit insurance documentation (FDIC coverage confirmation or equivalent scheme membership). Establish accounting systems tracking on-chain deposit liabilities in general ledger for regulatory reporting.
During operations:
Maintain vault funding discipline. Target 110-120% reserve ratio (vault balance / total liability) to accommodate early withdrawal surges and operational flexibility. Reconcile on-chain deposits with general ledger daily—the observability dashboard exports deposit balances for accounting system integration. Monitor interest accrual for P&L accuracy; automated calculations eliminate errors but treasury teams verify accrual methodology matches financial reporting standards. Track per-depositor insurance limits to prevent over-insurance scenarios where single depositors exceed FDIC/DGS caps. Review early withdrawal patterns for anomalies indicating fraud or customer distress. Execute maturity processing on maturity date—processing early (even by hours) violates interest calculation assumptions; processing late delays customer fund access and harms service quality metrics.
Regulatory compliance:
File regulatory reports including tokenized deposits in aggregate balance calculations. US banks include tokenized CDs in quarterly Call Reports (FFIEC reporting). Maintain reserve requirements per Regulation D if applicable—the platform tracks deposits but does not automatically calculate Federal Reserve reserve obligations (requires manual computation based on total deposit balances). Implement Reg D transfer limits monitoring (6 convenient transfers per month from savings deposits) through compliance dashboard review—automated enforcement not yet available. Screen depositors against sanctions lists continuously, not just at subscription—the platform integrates with screening providers for ongoing monitoring. File Currency Transaction Reports (CTRs) for large transactions exceeding $10,000—the observability dashboard flags qualifying events. Maintain depositor records per Bank Secrecy Act (5-year retention minimum)—audit logs provide immutable record suitable for regulatory examination.
Customer service:
Proactive communication reduces operational friction. Send maturity reminders 30 days before maturity date informing depositors of redemption timeline and rollover options. Provide clear disclosure of deposit terms, interest calculations, and early withdrawal penalties during subscription—the platform embeds terms in transaction metadata for customer review before confirmation. Offer rollover options before maturity through automated workflows rather than requiring customer-initiated contact. Maintain customer support channels for early withdrawal inquiries—some depositors require explanation of penalty calculations before proceeding. Provide monthly statements showing principal balance, accrued interest, and maturity date—the dApp displays this information on-demand, but many customers prefer periodic email summaries.
Troubleshooting
Deployment fails with "Invalid term length"
Verify term length is positive integer representing days. Check term is reasonable—platform enforces minimum 7 days and maximum 3,650 days (10 years) to prevent configuration errors. Ensure term format matches expected integer type (no decimal values).
Subscription processing reverts with "Identity verification failed"
Verify customer OnchainID has all required claims per configured compliance framework. Navigate to Compliance > Identity Verification and search customer address. The platform displays missing claims—customer must complete KYC process and obtain required claims before subscription approval. Check claim expiration dates; expired claims fail validation even if previously valid.
Subscription rejected with "Exceeds insurance limit"
Customer's aggregate deposits across all CD series exceed per-depositor insurance cap ($250,000 FDIC or configured limit). The platform queries total customer holdings via identity registry and validates subscription against cap. Customer must either reduce subscription amount or redeem existing deposits before purchasing additional CDs. For institutional customers with negotiated insurance arrangements, update per-depositor limit in Settings > Compliance > Insurance Caps.
Maturity processing fails with "Insufficient vault balance"
Vault balance < total redemption proceeds (sum of principal + interest for all matured deposits in batch). Navigate to Payments > Vault Funding and transfer additional denomination assets to vault address. Required funding: total proceeds + 10% buffer. After funding transfer confirms, retry maturity processing. Enable vault funding alerts in Settings > Notifications to receive warnings before balance drops below required thresholds—proactive monitoring prevents maturity processing failures.
Early withdrawal reverts with "Withdrawal not permitted"
Check deposit terms configuration: early withdrawal may be disabled entirely (prohibited setting) or require manual approval (restricted setting). Navigate to Settings > Early Withdrawal and verify configuration. If prohibited, customer cannot withdraw until maturity—inform customer of maturity date and suggest alternative liquidity sources. If restricted, queue request for treasury team review rather than automatic processing.
Interest accrual showing incorrect amount
Verify deposit issue date is accurate—interest accrual starts from issue date, not subscription request date. Check configured APR matches intended rate—the platform displays configured rate on Settings > Interest Rate page. Ensure compounding frequency setting matches product documentation (simple vs monthly/quarterly compound produces different accruals). Confirm denomination asset decimals factor correctly into interest calculation—18-decimal tokens require scaling factor adjustments for human-readable interest amounts. For technical deep-dive, see Contract Reference interest calculation implementation.
For additional help, consult Troubleshooting or contact support.
Next steps
Configure fiat integration: Set up Fiat bridge for traditional banking interoperability—customers deposit USD via ACH/wire, platform converts to denomination asset (USDC), then processes CD subscription automatically.
Manage depositor identities: Review Manage investors for OnchainID workflows, KYC claim issuance, and identity lifecycle management.
Monitor compliance metrics: Deep dive into Compliance certification for audit trail architecture, regulatory reporting automation, and SOC 2 control mapping.
Automate operations: Configure automatic maturity processing to eliminate manual batch reviews—platform executes redemptions on maturity date without treasury intervention. Configure rollover workflows for deposit retention automation. Enable vault funding alerts to maintain reserve ratios proactively.
Expand product portfolio: Deploy additional CD series with varying terms and rates for customer segmentation—3-month liquidity products, 24-month yield products. Use separate deposit token contracts for each series to simplify compliance tracking and interest rate management.