Issue a stablecoin (Fiat-pegged tokens with reserve backing)

Step 1: navigate to stablecoin creation

From the main dashboard, select Asset Management in the left sidebar, then choose Stablecoins from the asset type list. Click Create New Stablecoin to begin configuration. The stablecoin wizard guides you through economic parameters, reserve settings, compliance frameworks, and operational roles specific to maintaining a price peg.

Asset Management section showing existing stablecoins with circulating supply, reserve ratios, and peg status indicators

Step 2: configure token economics and peg parameters

Enter the token's identifying information: full legal name matching regulatory filings (e.g., "Platform USD Stablecoin"), trading symbol indicating currency (e.g., "PUSD" for USD-pegged, "PEUR" for EUR-pegged), token divisibility (typically 6 decimals for cent-level precision like USDC or 18 decimals for full EVM precision like DAI), and initial supply (typically 0 for stablecoins—mint only after reserve funding).

Include currency designation in the symbol to clarify peg target. "PUSD" immediately signals USD backing, while "PST" (Platform Stable Token) creates ambiguity. Clear naming reduces user confusion during market volatility. Six decimals matches traditional finance (cents) and reduces gas costs for transfers. Eighteen decimals provides maximum DeFi composability—most AMMs and lending protocols expect 18-decimal tokens.

Define the currency relationship by selecting the fiat currency your token tracks: USD (most common), EUR, GBP, JPY, CHF, or custom. This determines price targets for monitoring and redemption calculations. Specify the token-to-fiat exchange rate—standard 1:1 peg means 1 token = 1 unit of fiat currency (1 PUSD = $1.00 USD). Set acceptable deviation before triggering alerts: a 2% tolerance means prices between $0.98-$1.02 are normal; deviations beyond this range trigger arbitrage recommendations.

Basic token information fields with real-time validation showing symbol availability and decimal precision implications

Collateralization model configuration

Reserve ratio determines backing strength. Enter 100 for 100% backing (every token backed by $1 of reserves), or higher for overcollateralization (105 means $1.05 backing per token). MiCA and most e-money regulations require minimum 100% reserves. Overcollateralization provides operational buffers for settlement timing mismatches (wire transfers take 1-2 days, but tokens redeem instantly), market maker liquidity (keeping tokens available for arbitrageurs without depleting reserves), and collateral valuation fluctuations (if you hold treasury bills worth $1M today, they might be worth $995K tomorrow).

Circle maintains approximately 100% reserves in cash and treasuries. Tether historically claimed 100% but faced scrutiny over commercial paper valuations. Your ratio choice signals risk philosophy to users and regulators.

Peg currency selector, ratio input, and collateralization ratio with visual indicator showing minimum regulatory requirements

Step 3: configure DALP vault reserve management

Enter the Ethereum address holding collateral assets as your reserve wallet. This wallet must contain USDC, USDT, or other approved stablecoins equal to or exceeding your initial token supply. The system monitors this address continuously, calculating reserve ratios in real-time. For diversification, add multiple reserve wallets—if you hold $5M USDC at Bank A's custodian and $5M in tokenized treasuries at Institution B, configure both addresses. The vault aggregates balances across all reserve sources.

Define which assets count as reserves through collateral composition rules. Fiat-backed stablecoins (USDC, USDT, EURC) provide direct 1:1 equivalents with no haircut if matching your peg currency. Tokenized treasury bills (Backed Finance TBIIL, Ondo OUSG) are considered cash equivalents, typically with 1-2% haircut for interest rate risk. Tokenized money market funds are similar to treasuries but with management fees requiring 2-5% haircut. Off-chain bank deposits are tracked through oracle attestations and require independent auditor verification.

For each collateral type, configure the asset address (ERC-20 contract) for on-chain assets, haircut percentage as a discount factor for risk management (5% haircut means $100 of asset counts as $95 of reserves), and maximum allocation as concentration limits preventing over-reliance on single asset (e.g., max 40% USDT, max 30% treasuries).

Reserve wallet management showing multiple custody addresses, collateral asset allocation table with current holdings, haircuts, and allocation percentages

Observability dashboard integration for reserves

Once configured, the Reserve Health dashboard tracks total reserves aggregated across all custody addresses and collateral types, weighted reserve value after applying haircuts (e.g., $10M holdings with 2% average haircut = $9.8M reserve value), collateralization ratio calculated as (weighted reserves ÷ circulating supply) × 100%, 30-day minimum ratio showing lowest point reached to demonstrate stress test resilience, and reserve composition pie chart with visual allocation breakdown.

Alert thresholds trigger notifications across zones: Green zone (105%+) indicates healthy buffer with minting enabled without restrictions. Yellow zone (100-105%) is acceptable but requires close monitoring and consideration of reserve additions. Red zone (100% or below) pauses minting automatically and prioritizes reserve additions. Circuit breaker (below configured threshold) pauses redemptions and activates emergency protocols.

Step 4: configure minting and redemption through DvP settlement

Permissioned minting ensures only authorized treasury operators create new tokens. Toggle this to Enabled and configure proof-of-reserve requirements—when enabled, each mint transaction must include a collateralReference field (transaction hash or bank wire reference) proving reserves increased correspondingly. This creates an immutable audit trail linking every token to specific reserve deposits. Set minimum issuance floor amount (e.g., $10,000 equivalent) to reduce operational overhead—processing 100 × $1,000 requests costs more in compliance review and gas fees than 10 × $10,000 requests.

Configure issuance fee in basis points charged on minting (e.g., 10 bps = 0.1%). Circle charges nothing for USDC minting but captures spread through interest on reserves. Fee revenue helps offset attestation costs and infrastructure overhead. Set daily mint cap as maximum supply expansion per 24-hour period, preventing sudden reserve strain. If you hold $50M reserves and set a $5M daily cap, reserves can't drop below 90% overnight from rapid issuance.

Add wallet addresses permitted to execute minting as authorized issuers. Each issuer receives a SUPPLY_MANAGEMENT_ROLE grant. Configure per-issuer daily mint cap and single transaction maximum to prevent accidental over-minting from human error (treasury operator types $10M instead of $1M). Only authorized issuers can mint tokens. Redemption (burning) is typically permissionless—any token holder can redeem for reserves, aligning with MiCA's requirement that users have unconditional redemption rights at par.

Minting settings showing authorization requirements, proof of reserve toggle, minimum amount, fee structure, and daily caps with current utilization

Redemption workflow and DvP settlement

Toggle redemption enabled to control whether users can burn tokens for fiat/collateral. Disabling redemptions breaks the arbitrage mechanism that maintains the peg, so this setting should only be used during emergency circuit breaker activations. Set minimum redemption floor amount (e.g., $1,000)—small redemptions create operational burden since processing a $50 redemption requires the same KYC checks, wire fees, and accounting as a $50,000 redemption.

Configure redemption fee in basis points charged on burning. Circle charges zero for USDC redemptions above minimum thresholds. Some issuers charge 10-25 bps to cover wire fees and operational overhead. High redemption fees weaken arbitrage incentives and can cause persistent depegging.

Define settlement time for how quickly users receive fiat when redeeming tokens. T+0 (same-day) provides instant settlement for collateral-based redemptions—burn tokens and receive USDC immediately through DALP's atomic DvP settlement. This requires vault holding liquid on-chain stablecoins. T+1 (next business day) is standard for domestic wire transfers where treasury receives redemption request today, initiates wire, and user receives fiat tomorrow. T+2 (two business days) accommodates international wires or ACH transfers. Faster settlement strengthens peg maintenance—if redemptions take three days, arbitrageurs avoid them, allowing price to drift further below peg.

Set daily redemption cap as maximum redemption volume per 24 hours. If circulating supply is $50M and you set a $10M daily cap, maximum possible redemptions are 20% of supply per day. This prevents bank runs while maintaining meaningful redemption access. Configure reserve threshold circuit breaker to automatically pause redemptions if reserve ratio drops below configured percentage (e.g., 95%). This protects remaining holders from reserve depletion, though it also breaks peg arbitrage.

Redemption settings panel showing enabled toggle, minimum/fee inputs, settlement timing selector, daily caps, and circuit breaker threshold

DALP's atomic DvP (Delivery vs Payment) settlement enables instant T+0 redemptions—burn tokens and receive collateral in a single transaction. This provides faster arbitrage than traditional stablecoins relying on T+1 wire transfers, keeping the peg tighter and enabling arbitrageurs to respond within seconds rather than days.

Step 5: set compliance framework and restrictions

Choose the regulatory regime governing your stablecoin issuance. Markets in Crypto-Assets (MiCA) is EU regulation effective June 2024, requiring e-money token (EMT) authorization, 100% reserves in segregated accounts, daily reserve reporting to supervisory authority, public disclosure of reserve composition, and comprehensive governance framework. E-Money Directive 2 (EMD2) is predecessor to MiCA, still valid until MiCA fully supersedes it, requiring e-money institution (EMI) license, 100% safeguarding of funds, passporting rights across EU member states, and six-month audited financial statements.

Money Transmitter Licensing (US) applies state-by-state requirements, typically requiring surety bonds ($25,000-$500,000 per state), audited financial statements, background checks on principals, and minimum net worth requirements ($100,000-$1M depending on state). Payment Services Directive 2 (PSD2) is EU framework for payment institutions, permitting e-money issuance if authorized as payment institution (PI) or EMI with capital adequacy, safeguarding arrangements, and transaction reporting.

Selecting a framework pre-populates compliance modules with required identity verification levels, transaction monitoring thresholds, and reporting templates.

Framework cards showing MiCA, EMD2, MTL, PSD2, and Custom options with key requirements, capital minimums, and geographic scope

Identity verification and transaction restrictions

Based on your selected framework, configure OnchainID claim requirements for token holders. Choose KYC verification level as Basic (Level 1) for natural persons with identity document verification, or Enhanced (Level 2) for high-risk jurisdictions requiring proof of address and source of funds. MiCA requires Enhanced KYC for transactions exceeding €1,000 cumulative per customer. Require jurisdiction verification to confirm holder's country of residence, sanctions screening for OFAC, EU, UN sanctions list checks with claims updating continuously, PEP screening for politically exposed persons requiring Enhanced Due Diligence, and business verification for institutional holders requiring business registration documents, beneficial ownership disclosure (UBO), and authorized signatory verification.

Configure AML controls enforced in smart contracts including transaction limits as maximum transfer amount per transaction, velocity limits as maximum cumulative volume per address per time period (e.g., $50,000 per address per 24 hours), geographic restrictions to block transfers to addresses with verified identities in prohibited jurisdictions, and blocklist management to maintain list of sanctioned addresses that cannot hold or transfer tokens.

Traditional stablecoins like USDC implement compliance through off-chain processes—Circle reviews transactions, then manually freezes accounts. This reactive approach means sanctioned addresses can receive tokens before freezing occurs. DALP enforces restrictions in smart contracts—transfers to invalid addresses revert immediately, preventing compliance violations before they happen.

Compliance configuration showing identity verification requirements, transaction monitoring thresholds, geographic restrictions, and blocklist management panels

Reserve attestation automation and transparency

Schedule periodic reserve verification as daily, weekly, or monthly. MiCA significant EMTs require daily reserve reporting to supervisors. Public attestations build user confidence—Circle publishes monthly attestations, Tether quarterly. Contract an independent auditor (Big Four accounting firm), blockchain audit firm (Trail of Bits, OpenZeppelin), or proof-of-reserves service (Chainlink Proof of Reserve). Enter provider's address or API endpoint for automated attestations.

Choose how attestations are shared: on-chain hash commitment where auditor posts SHA-256 hash of attestation report to blockchain, on-chain full report storing complete attestation data on-chain (expensive for detailed reports), or off-chain publication where auditor posts report to website with no on-chain component. Enable public visibility for total supply, reserve balance showing real-time aggregate reserve value, collateralization ratio updated per block, and redemption statistics with aggregate metrics including daily redemption volume, average settlement time, and redemption fee revenue.

MiCA requires public disclosure of reserve composition, collateralization ratio, and redemption rights. DALP's vault transparency through observability dashboards satisfies these requirements automatically, providing continuous attestation rather than delayed monthly reports.

Attestation settings showing frequency selector, provider address input, publication method options (on-chain hash, full report, off-chain), and transparency toggles

Step 6: assign operational roles with multisig security

Grant permissions for stablecoin lifecycle management. Use multisig wallets for all privileged roles to prevent single-point-of-failure. GOVERNANCE_ROLE manages compliance policies and parameters—configure compliance modules (KYC requirements, transaction limits), update reserve composition rules and haircut percentages, modify attestation schedule and provider, and pause/unpause issuance and redemptions during market stress. Typically assign to compliance officer multisig or regulatory affairs wallet.

SUPPLY_MANAGEMENT_ROLE controls token supply—mint new stablecoins after verifying reserve deposits, burn stablecoins during redemption processing, and manage authorized issuer list and per-issuer limits. Typically assign to treasury operations multisig with 2-of-3 signature requirement. CUSTODIAN_ROLE enforces sanctions and court orders—freeze individual accounts flagged by compliance, execute forced transfers (regulatory seizures, court judgments), recover tokens from lost private keys (with legal documentation), and manage blocklist additions/removals. Typically assign to AML compliance officer multisig.

EMERGENCY_ROLE handles security incidents—pause all token transfers during smart contract exploits, activate circuit breaker (pause minting/redemption), and unpause after incident resolution. Typically assign to security operations multisig with 3-of-5 signature requirement.

Role configuration form showing four roles with wallet address inputs, permission descriptions, current role holders, and multisig status indicators

Step 7: review configuration and deploy contracts

Verify your configuration before deployment. Confirm token name and symbol match regulatory filings and legal entity documentation, peg currency and ratio correctly reflect intended currency relationship, collateralization model meets or exceeds regulatory requirements (minimum 100% for MiCA/EMD2), reserve wallet addresses are verified as secure multisig custody with appropriate signers, collateral composition rules align with risk management policy, issuance and redemption parameters match operational procedures and compliance requirements, compliance framework matches obtained licenses (MiCA, EMD2, MTL, etc.), all operational roles are assigned to secure multisig wallets with documented signers, attestation provider is contracted and connection tested, and reserve wallet(s) are funded with initial collateral equal to or exceeding initial mint plans.

Pre-deployment review showing stablecoin parameters, peg settings, reserve configuration, compliance framework, role assignments, and attestation schedule in organized sections

Click Deploy Stablecoin to begin contract deployment. The system deploys stablecoin proxy contract (upgradeable for parameter adjustments, non-upgradeable for core economic logic) in 15-20 seconds, initializes with your parameters (name, symbol, decimals, peg target) in 10 seconds, configures reserve vault and links custody addresses in 10 seconds, assigns roles to specified multisig wallets with 5 seconds per role, registers with identity registry and compliance modules in 10 seconds, and emits StablecoinDeployed event with contract address. Total deployment time: 60-90 seconds depending on network congestion.

Enter your PIN or OTP to sign deployment transactions. The deployment process requires multiple signatures if your wallet is a multisig—coordinate with co-signers before initiating.

Deployment progress modal showing step-by-step status with checkmarks, timestamps, transaction hashes, and estimated remaining time

Step 8: fund vault reserves and configure attestation

After successful deployment, note the stablecoin contract address and click View Stablecoin to navigate to the token dashboard. Verify token information (name, symbol, decimals, peg target) displays correctly, reserve vault address matches configured custody wallets, collateralization ratio shows 100%+ if reserves pre-funded or 0% if awaiting funding, roles are assigned to correct multisig addresses, and compliance modules are enabled with proper claim requirements.

Token details page showing key metrics (total supply, market cap, reserve balance), collateralization ratio gauge, peg status indicator, and active role holders

Fund DALP vault with reserve collateral

Establish initial collateral before first mint. For on-chain collateral (USDC, USDT), transfer stablecoins to reserve wallet address shown in Reserves tab, wait for transaction confirmation (1-2 blocks), refresh Reserve Health dashboard to verify balance appears, and confirm collateralization ratio displays 100%+ (infinite if no tokens minted yet). For off-chain collateral (bank deposits), wire fiat to designated bank account per your banking relationship, wait for funds to clear (1-3 business days), coordinate with attestation provider to verify deposit, upload attestation report via Attestation > Post Report, and reserve balance updates after attestation processed.

Maintain 105-110% collateralization as operational buffer. This excess covers wire transfer timing delays (customer deposits fiat Tuesday, but wire doesn't settle until Thursday), market making needs (keeping tokens available on DEXs without depleting primary reserves), and interest rate fluctuations on treasury collateral (if you hold T-bills, their mark-to-market value changes daily).

Configure attestation automation with observability integration

Set up independent reserve verification to satisfy regulatory requirements and build user trust. For automated attestation services, navigate to Attestation tab, click Configure Provider, enter attestation service API endpoint or smart contract address (e.g., Chainlink Proof of Reserve feed), set attestation frequency (daily recommended for MiCA significant EMTs), test connection to verify provider can access reserve wallet data, enable automated attestations, and system will request attestation per schedule and post results on-chain with visibility in observability dashboards.

For manual attestation (accounting firms), contract independent auditor (Big Four firm or specialized blockchain auditor), provide reserve wallet addresses, bank account details, and collateral composition reports, schedule periodic attestations (monthly or quarterly), when attestation report is completed upload PDF via Attestation > Post Report, system generates SHA-256 hash and posts to blockchain as proof of existence, and full report is hosted at auditor's website or IPFS with hash verifying integrity. The observability stack tracks attestation status, displaying last attestation timestamp, next scheduled attestation, and historical attestation results across your monitoring dashboards.

Circle publishes USDC attestations monthly through Grant Thornton LLP. Tether publishes quarterly, historically receiving criticism for infrequency. Choose frequency balancing cost (attestations cost $5,000-$50,000 each) and transparency expectations.

Attestation configuration showing provider connection status, frequency settings, last attestation timestamp, and manual report upload interface with hash verification

Enable issuance after reserves funded and attestation configured. Navigate to Settings > Issuance, toggle Issuance Enabled to On, verify reserve wallet shows adequate balance, review authorized issuer list contains correct treasury operation wallets, and save changes. Authorized issuers can now execute minting following your operational workflow: customer wires $100,000 to your bank account, treasury confirms wire cleared, treasury mints 100,000 PUSD to customer's OnchainID-verified address using DvP settlement, and reserve ratio updates automatically with metrics visible in observability dashboards.

Step 9: operate stablecoin lifecycle with DvP settlement

When customers deposit fiat collateral, mint corresponding tokens. Customer initiates fiat deposit by sending wire transfer to your bank account with reference number or transferring USDC/USDT to your reserve custody address. Verify deposit cleared and available (wait for wire settlement or blockchain confirmation). Navigate to Actions > Mint Stablecoins and enter recipient address (customer's OnchainID-verified wallet), mint amount equal to deposited collateral (e.g., $100,000 deposit = 100,000 tokens), and collateral reference as transaction hash (on-chain) or wire reference number (off-chain). Review collateralization ratio projection showing pre-mint and post-mint ratios tracked in observability dashboards, then click Execute Mint.

System validation checks before minting confirm recipient has valid OnchainID with required claims (KYC level, jurisdiction, sanctions clear), reserve balance sufficient to maintain collateralization ratio above minimum, mint amount within authorized issuer's daily limit, and recipient address not on blocklist. If validation fails, transaction reverts with specific error message visible in transaction monitoring dashboards.

Mint stablecoins form showing recipient address input with OnchainID verification status, amount field, collateral reference input, pre/post collateralization ratio comparison, and execute button

The collateralReference parameter creates immutable audit trail. Regulators or auditors can query: "Show me the collateral deposit backing these tokens." Your system produces the transaction hash or wire reference, proving 1:1 correspondence. This satisfies MiCA's requirement for "robust and reliable verification mechanisms."

Process redemptions through DvP settlement

When customers burn tokens to receive fiat, process redemption requests. Customer submits redemption request via dApp—entering redemption amount (must meet minimum threshold), selecting payout method (wire transfer for fiat, or stablecoin collateral for instant DvP settlement), and providing banking details (account number, routing, SWIFT) for fiat redemptions. Request appears in Redemptions > Pending queue. Review request details including customer identity (OnchainID) and KYC status, redemption amount and payout method, settlement date (T+0, T+1, or T+2 depending on configuration), and current collateralization ratio impact (preview available in observability dashboards).

Process redemption by clicking Process Redemption. System burns tokens from customer's address atomically. For stablecoin payout, vault releases USDC/USDT immediately via DvP settlement (T+0 same-transaction settlement). For fiat payout, initiate wire transfer through banking partner and mark redemption as Completed after fiat transfer confirmed. Collateralization ratio updates automatically with reserve balance decreasing proportionally, tracked in real-time through observability dashboards.

Circle offers T+1 settlement for USDC redemptions above $100,000. Smaller redemptions face longer delays due to operational overhead. Consider tiered settlement: instant DvP for large redemptions (attract arbitrageurs), T+1-T+2 for retail. Traditional stablecoin redemption workflows involve customer support ticket, KYC verification, compliance review, treasury approval, manual wire initiation, bank processing, and reconciliation—a multi-day process costing $25-$75 per redemption in labor and overhead. DALP automates KYC verification (OnchainID claims checked in smart contract) and compliance screening (transaction monitoring rules), reducing manual steps to wire initiation only. Operational costs drop 70-85%, and settlement accelerates to T+0 or T+1.

Redemption requests table showing pending requests with customer OnchainID, redemption amount, payout method, settlement date, and process/reject buttons

Reserve balance decreases with each redemption. If ratio approaches minimum threshold (100%), the observability dashboards alert treasury to pause issuance until reserves replenished, reduce reserve haircuts (if safe to do so), or add collateral to buffer reserves. If ratio drops below configured circuit breaker threshold (typically 95%), redemptions pause automatically to prevent reserve depletion and protect remaining holders.

Monitor peg health through observability dashboards

Track secondary market pricing and arbitrage opportunities through the Peg Health dashboard. View current market price from real-time DEX oracles (Uniswap TWAP, Chainlink feeds), target peg price (always 1.00 for 1:1 pegged stablecoins), deviation percentage showing how far current price differs from target (e.g., +2.3% = $1.023), trading volume with 24-hour volume across tracked DEXs and CEXs, and price history chart with 30-day trend showing volatility and deviation patterns.

If trading above peg (e.g., $1.02), token demand exceeds supply—users pay premium because they can't mint tokens fast enough. Increase issuance capacity (raise daily mint caps for authorized issuers), signal willingness to mint at par (post liquidity depth at $1.00 on DEX order books), add DEX liquidity (provide PUSD/USDC pair at tight spreads), and verify redemption minimums aren't blocking small arbitrageurs. If trading below peg (e.g., $0.98), token supply exceeds demand—users dump tokens because redemption is difficult. Verify redemptions are enabled and processing quickly via DvP settlement, reduce redemption minimums (make arbitrage accessible to more participants), buy back tokens from market using reserve collateral (support price floor), communicate redemption availability publicly (Twitter, Discord, documentation), and check observability dashboards for technical issues preventing redemptions (daily caps exhausted, circuit breaker triggered).

Peg monitoring dashboard showing current price vs target, deviation gauge (green zone ±0.5%, yellow ±1%, red >2%), price history chart, DEX volume breakdown, and recommended actions panel

When PUSD trades at $0.98 on Uniswap, arbitrageurs profit by buying PUSD on Uniswap at $0.98, redeeming PUSD with issuer at $1.00 via DvP settlement (receiving USDC or fiat), and netting $0.02 per token (2% return). This arbitrage reduces circulating supply (tokens burned during redemption) and increases demand (buying from Uniswap), pushing price back toward $1.00. DALP's atomic DvP settlement (burn tokens → receive collateral in single transaction) enables instant T+0 arbitrage when collateral is on-chain stablecoins, creating tighter peg maintenance than traditional stablecoins relying on T+1 wire transfers.

Maintain reserve health through observability monitoring

Monitor collateralization ratio continuously through the Reserves dashboard displaying key metrics. Total supply shows circulating tokens (sum of all holder balances). Reserve balance displays on-chain collateral (real-time) plus off-chain collateral (per last attestation). Collateralization ratio is calculated as (reserve balance ÷ total supply) × 100%. Excess reserves show absolute amount above minimum backing (e.g., $52M reserves / $50M supply = $2M excess). Reserve composition displays pie chart showing allocation across USDC, USDT, treasuries, and bank deposits.

Alert thresholds trigger across zones: Green zone (105%+) indicates healthy operational buffer with all functions enabled. Yellow alert (100-105%) is acceptable but requires close monitoring and consideration of adding reserves before next issuance. Red alert (<100%) falls below minimum regulatory requirement with minting paused automatically. Circuit breaker (<configured threshold, typically 95%) activates emergency mode with redemptions paused and governance intervention required.

As collateral composition drifts from target allocation, rebalance reserves. Navigate to Reserves > Rebalance, review current vs. target allocation displayed in observability dashboards, execute transfers to reduce overweight asset (transfer USDC from reserve wallet to trading account) and increase underweight asset (buy USDT, transfer to reserve wallet), verify new allocation meets policy limits, and confirm reserves total remains constant (no change to collateralization ratio).

Simulate redemption scenarios quarterly to verify reserve adequacy: "What if 20% of supply redeems in 24 hours?" checking if reserves support $10M outflow, "What if T-bill collateral drops 2% in value?" verifying ratio stays above 100%, and "What if primary banking partner freezes account?" confirming backup liquidity sources suffice. Run stress tests and adjust reserve buffers accordingly, tracking results through observability metrics.