How to use the fiat-token bridge

Primary audience: Treasury operations staff, payment processors
Secondary audience: Banking integration teams, compliance officers

The fiat-crypto bridge challenge

Bridging traditional finance with blockchain introduces a fundamental settlement timing mismatch. Bank wires take 1-3 business days (T+1 to T+3) while blockchain transfers settle in seconds. This creates liquidity risk, operational complexity, and reconciliation headaches.

ATK's fiat bridge solves this by combining DALP vault custody with real-time observability. Treasury operators can monitor deposits in flight, track redemption liabilities, and maintain reserve ratios—all from integrated dashboards that show both on-chain and off-chain positions simultaneously.

The challenge isn't just moving money between systems. It's maintaining accurate accounting when one side operates 24/7 (blockchain) while the other works banker's hours (wire transfers). Without proper tooling, teams resort to spreadsheets and manual reconciliation that break down at scale.

Before you start

Prerequisites:

• Platform stablecoin deployed (see Issue a stablecoin)
• Banking relationship with wire transfer capabilities
• KYC procedures integrated with OnchainID registry
• Access to observability dashboards

Time estimate: Initial setup 2-3 hours; ongoing operations are transaction-by-transaction

Required knowledge:

• Treasury operations and wire transfer processing
• AML/KYC compliance procedures
• Basic blockchain wallet operations

Choose your on-ramp provider

Your first decision: integrate directly with banks via wire transfers, use a specialized on-ramp provider, or support both paths. Each approach has distinct tradeoffs for speed, cost, and regulatory complexity.

Direct bank integration

Use this when you have existing banking relationships and a treasury operations team familiar with wire processing. This approach is common for issuers handling institutional investors or regulated financial products. You avoid third-party fees (saving 25-50 bps per transaction), maintain full control over settlement timing, and operate under the simplest regulatory structure with no additional money transmitter licenses. It works for any transaction size. The tradeoff is manual reconciliation unless you integrate a banking API, slower T+1 to T+3 settlement for wires, business-hours-only processing, and higher operational overhead for your treasury team.

Check the bridge status panel in observability dashboards to monitor the pending wire verification queue and track average processing times across your operations cycle.

Third-party on-ramp providers (Wyre, Circle, Stripe)

Choose providers when you need instant deposits, want to support retail investors with smaller transaction sizes, or lack in-house treasury operations. Providers offer instant settlement measured in seconds instead of days, automated reconciliation via API, support for credit cards and ACH, 24/7 operation including weekends, and handle AML screening for you. The cost is 50-100 bps per transaction, potential KYC duplication with your OnchainID verification, transaction size limits often capped at $10,000-$50,000, additional counterparty risk, and regulatory dependency on the provider maintaining their licenses.

To integrate, register with your chosen provider (Wyre, Circle, or Stripe Crypto), then configure webhook endpoints to receive deposit notifications. Link the provider's user ID with each investor's OnchainID address so the system can match deposits to accounts. Mint tokens automatically when webhooks confirm deposits, and monitor provider status via the observability dashboard integration you configure during setup.

Check the payment provider dashboard to track provider API health, webhook delivery rates, and accumulated fees over time.

Hybrid approach (recommended for institutional issuers)

Support both wires for institutional investors and large transactions over $50,000 alongside on-ramp providers for retail investors and smaller amounts under $50,000. This balances cost efficiency for large amounts with user experience for retail participants.

Configure bridge settings

Banking configuration

Navigate to Platform Settings > Fiat Bridge > Banking to establish the receiving endpoint for investor wires. Treasury teams need complete account details to generate wire instructions investors will use. Enter your bank name, account holder legal entity name (which must match the issuer entity on securities), account number for wire deposits, SWIFT/BIC code for international identification, routing number for domestic transfers, and IBAN for European accounts. Multi-currency support requires separate accounts per currency to avoid forex conversion ambiguity—add each currency by clicking Add Currency Account, selecting the currency (USD, EUR, GBP), entering currency-specific bank details, setting transaction limits, and configuring your exchange rate source (manual or API).

Banking configuration showing bank account details for multiple currencies with account numbers and SWIFT codes

CRITICAL: Use segregated accounts. Never commingle fiat bridge deposits with operational funds. Segregated accounts simplify reconciliation and demonstrate reserve backing to auditors.

Check the bank balance panel in observability dashboards to compare actual bank balance against expected balance calculated from token supply and pending transactions.

Stablecoin configuration

Navigate to Platform Settings > Fiat Bridge > Stablecoins to establish which tokens represent fiat deposits. You can bridge your platform stablecoin for full control and no third-party risk, or external stablecoins like USDC for wider acceptance and network effects. Click Add Stablecoin, enter the token contract address, verify that token details auto-populate (name, symbol, decimals), then set conversion parameters. Configure the peg ratio (typically 1:1 meaning 1 token equals 1 fiat unit), deposit fee in basis points charged on fiat-to-token conversions (e.g., 0-50 bps), redemption fee in basis points for token-to-fiat (e.g., 0-50 bps), minimum deposit amount (e.g., $100), and minimum redemption threshold. Click Enable Stablecoin when complete.

Common fee structures use 0% deposit fees to encourage onboarding and 10-25 bps redemption fees to cover wire costs and maintain spread. The redemption fee should cover your banking wire fees plus a small margin. For example, if your bank charges $25 per outbound wire, a 25 bps fee on a $10,000 redemption generates $25 to cover the cost. For smaller redemptions, consider a minimum fee structure ($25 minimum or 25 bps, whichever is greater).

Stablecoin configuration showing enabled stablecoins with contract addresses, peg ratios, fees, and minimum amounts

Check the stablecoin metrics panel to monitor total supply by stablecoin, mint/burn rates, and fee accumulation trends over time.

Operational parameters

Navigate to Platform Settings > Fiat Bridge > Operations to define your SLAs to investors. Be realistic—promising T+0 settlement when your treasury team operates 9-5 creates expectation mismatches. Align cut-off times with your banking hours and internal processing capacity to maintain credibility and operational discipline.

Configure settlement timing by setting deposit settlement policy (T+0, T+1, or T+2 for token minting after fiat receipt verification) and redemption settlement (T+1, T+2, or T+3 for fiat payout after token burn). Set the daily cut-off time as the deadline for same-day processing (e.g., 3:00 PM local time). For example, an institutional issuer might configure T+1 deposit settlement with a 3:00 PM cut-off (wires received by 3 PM are verified and minted the next business day) alongside T+2 redemption settlement (redemption requests approved today result in wires sent two business days later). This gives treasury time to verify deposits and arrange funding for redemption wires.

Set transaction limits including daily deposit limit (maximum total deposits per day), daily redemption limit (maximum total redemptions per day constrained by liquidity), per-transaction maximum (largest single deposit or redemption), and velocity limits (maximum per address per time period for AML control). Base limits on liquidity capacity—your daily redemption limit should not exceed your available bank balance plus same-day liquidity sources like credit lines or on-demand liquidity pools.

Configure operational hours by defining business days (Monday-Friday excluding holidays), business hours for manual processing (9:00 AM - 5:00 PM), and your holiday calendar (US Federal, UK, EU holidays). When operations are closed, deposits queue for next business day processing—communicate this clearly to investors to avoid support inquiries.

Operational parameters showing settlement times, transaction limits, business hours, and holiday calendar

Check the bridge operations dashboard to monitor current queue depths, average processing times, and SLA compliance rates across all active operations.

Process fiat deposits

The fiat-to-token flow converts investor wire transfers into on-chain token balances. Each deposit moves through verification (confirm receipt and investor identity) then minting (issue tokens to investor address).

Receive wire transfer

Investors initiate wire transfers to your configured bank account, with each wire including reference information linking it to the investor's platform account or OnchainID address. Navigate to Fiat Bridge > Deposit Instructions and click Generate Deposit Instructions. The platform creates a unique deposit reference code for the investor and generates complete wire instructions including bank account details, the unique deposit reference code, and the required memo/reference field format. Share these instructions with the investor via email or your investor portal.

The reference code is critical—without it, treasury must manually match wires to investors using name and amount, which is error-prone and slow. Investors receive instructions showing the bank name, account holder, account number, routing and SWIFT codes, along with the reference code to include in the wire memo field. The reference code links automatically to the investor's OnchainID during verification.

Verify deposit receipt

Treasury confirms fiat arrived in the bank account and links it to the correct investor. If you have banking API integration, the platform polls your bank account for incoming wires every 15 minutes, and new deposits appear in Fiat Bridge > Pending Deposits where the platform matches deposits to investors via reference code, verifies amount and sender automatically, then moves deposits to the mint queue.

Check the deposit verification panel in observability dashboards to see incoming wires awaiting verification and monitor average time from wire receipt to verification completion.

For manual verification without banking API, check your business bank account for incoming wires via the bank portal, then navigate to Fiat Bridge > Pending Deposits and click Record Deposit. Enter the deposit amount and currency, wire reference number from your bank statement, wire date, and investor address (lookup by reference code or email), then click Verify Deposit. The platform links the deposit to the investor account, calculates the token mint amount as (deposit minus fees) divided by peg ratio, and marks the deposit as verified and ready for minting.

Deposit verification showing pending wire transfers with amount, currency, reference, investor lookup, and verify button

Before processing each day's deposits, reconcile bank account balance against platform recorded deposits. Discrepancies indicate missed wires or data entry errors that need investigation.

Check the reconciliation dashboard to compare expected bank balance (from platform records) against actual balance (from banking API or manual entry) to catch issues early.

Mint tokens

After verification, issue tokens to investor addresses—this is where fiat becomes blockchain-native value. Navigate to Fiat Bridge > Verified Deposits to review deposits ready for minting. Each verified deposit shows the investor OnchainID address, fiat amount deposited, applicable fees (deposit fee plus wire fees), net token mint amount calculated as (fiat amount minus fees) divided by peg ratio, which stablecoin to mint, and the settlement date based on verification time and your T+0/T+1 policy.

CRITICAL: Verify investor compliance status. The platform automatically checks OnchainID verification status and compliance module eligibility before allowing mint. If the investor lacks required claims or is on a blocklist, the mint will fail with a clear error explaining the issue.

To mint a single deposit, click Mint Tokens—the platform executes the mint transaction on-chain, records the transaction hash on the deposit record, updates the investor token balance, sends notification to the investor via email and in-app, then marks the deposit as complete. Treasury teams processing 10-100 daily deposits benefit from batch operations: select multiple deposits via checkboxes, click Batch Mint, and the platform processes all in sequence before showing batch results with successful mints and any failures with reasons.

Check the mint operations panel in observability dashboards to monitor mint transaction success rates, average gas costs, and mint volume by stablecoin over time.

Verified deposits showing deposit details, calculated token amounts, and mint buttons with batch processing option

The minting step synchronizes with OnchainID claims—the platform validates that the investor has a KYC claim with issuer signature, is not on any blocklist, meets minimum investment requirements if configured, and that token transfer restrictions allow minting to this address. If any check fails, the mint is blocked and the deposit queues for manual review or refund.

DALP vault integration: Minted tokens represent claims on vault-held reserves. Ensure vault custody arrangements match token supply to maintain 1:1 backing. Check vault reserve ratio in observability dashboards after large mint operations to verify reserves remain above your target threshold (typically 100-110%).

Process redemption requests

The token-to-fiat flow converts on-chain balances back to bank wire transfers. Investors request redemption, treasury approves and burns tokens, then executes wire transfers to complete the cycle.

Receive redemption request

Investors initiate redemption via the dApp interface by navigating to Account > Redeem Tokens, entering the token amount to redeem, selecting the fiat currency to receive (USD, EUR, GBP), and providing banking details (beneficiary name matching KYC records, bank account number or IBAN, SWIFT/BIC code, bank name and address). After reviewing redemption fees and net fiat amount, they click Submit Redemption Request. The platform creates the redemption request and queues it for treasury approval with timestamp and estimated settlement date based on your operational parameters.

Check the redemption queue panel in observability dashboards to monitor pending redemptions by volume and value, average queue time, and requests approaching SLA deadlines.

Review redemption request

Treasury verifies investor identity, compliance status, and banking details before approving redemption. Navigate to Fiat Bridge > Redemption Requests to review requests showing investor identity (OnchainID address, KYC claim status, investor name from claims), token amount to burn (verify investor holds sufficient balance), banking details (beneficiary name, account number, SWIFT/BIC), redemption fees (basis points or minimum), net fiat payout (token amount times peg ratio minus fees), and settlement date based on request time and your T+1/T+2 policy.

CRITICAL verification: Banking details must match KYC records. This prevents redemption to third-party accounts, a potential money laundering vector. If the beneficiary name does not match the investor name from KYC claims, flag for manual review. Verify that the KYC claim status is current (not expired), investor is not on blocklists or sanctions lists, banking details match verified KYC records, investor holds sufficient token balance (greater than or equal to requested amount), and the redemption amount meets your minimum threshold.

Check the compliance metrics panel in observability dashboards to see redemption rejection rates by reason and identify patterns requiring investor education.

Redemption request details showing investor info, token amount, banking details, fees, net payout, and approve/reject buttons

Approve or reject redemption

To approve, click Approve Redemption and confirm—the platform executes the burn transaction on-chain, removes tokens from the investor address, moves the redemption to Pending Payout queue with the settlement date, and records liability for the fiat payout. Burned tokens reduce liability against vault reserves—monitor vault reserve ratio to ensure sufficient liquidity for pending payouts.

If you find compliance or verification issues, click Reject Redemption and select a rejection reason (banking details mismatch, KYC claim expired or missing, insufficient token balance, suspicious activity flag, or sanctions list match). Enter detailed notes for the audit trail and confirm rejection. The platform cancels the redemption request, notifies the investor with the rejection reason, leaves tokens in the investor wallet, and logs the rejection in the audit trail.

Monitor rejection rate in observability dashboards—high rejection rates exceeding 5% indicate investor education is needed on banking details verification or KYC claim renewal processes.

Check the redemption approval panel to track approval throughput, average review time per request, and pending approvals approaching SLA deadlines that require attention.

Execute fiat payout

Transfer fiat from your issuer bank account to investor bank accounts. Navigate to Fiat Bridge > Pending Payouts to see approved redemptions with settlement dates reached. Before processing payouts, verify bank account balance covers total payout amount plus wire fees—if insufficient, arrange funding by transferring from reserves, drawing on credit lines, or liquidating collateral.

Check the vault liquidity panel in observability dashboards to see available reserves, pending payout liabilities, and current reserve ratio. The system alerts if the ratio drops below your configured threshold (typically 100-110%).

If you have payment processor API integration, select redemptions for payout (filter by settlement date equals today), click Execute Automated Payout, and the platform sends payout instructions to the processor API. The processor initiates wire transfers, webhooks confirm wire execution, the platform marks redemptions as paid, and observability metrics update automatically.

For manual payout via business banking portal, click Export Payout Batch to generate a CSV with wire details, review the CSV contents (beneficiary, account, amount per redemption), then process wire transfers via your business banking portal (one by one or bulk upload if your bank supports it). After each wire executes, navigate to the redemption record in the platform, click Mark as Paid, enter the wire confirmation number from your bank and the payout date when the wire executed, then confirm completion. The platform records the payout and notifies the investor.

Many banks support bulk wire file upload in ISO 20022 format—export the batch as XML, upload to the bank portal, and approve the batch. This reduces manual entry from 100 clicks to 1 upload plus 1 approval step.

Pending payouts showing redemptions grouped by currency with amounts, investor details, and execute payout buttons

Honor stated settlement periods (T+1, T+2) rigorously. Delayed redemptions damage investor confidence and may violate contractual obligations. If delays occur, proactively notify investors with updated timelines.

Check the payout execution panel to monitor wire execution rates, average payout processing time, and SLA compliance percentage across all redemption operations.

Monitor bridge operations with observability

The bridge dashboard aggregates metrics across deposit verification, minting, redemption approval, and payout execution. This unified view prevents operational blind spots that arise when teams track metrics in separate systems. Navigate to Fiat Bridge > Dashboard to access the centralized monitoring interface.

Volume statistics

Track fiat-crypto flow patterns over time to understand demand trends. The dashboard shows total deposits (24h, 7d, 30d aggregations) representing fiat inflows, total redemptions (24h, 7d, 30d) representing fiat outflows, net flow calculated as deposits minus redemptions (positive indicates growing AUM, negative indicates redemptions exceeding deposits), and average transaction size helping segment retail versus institutional activity. Sustained negative net flow indicates redemption pressure—check vault liquidity and consider marketing campaigns to attract new deposits.

Check the bridge volume chart to visualize deposit and redemption trends over 30 days with overlaid liquidity reserve levels showing the relationship between flows and available reserves.

Processing metrics

Monitor operational efficiency through metrics showing pending deposits count (awaiting verification), pending redemptions count (awaiting approval), average processing time from request to completion, and failed transaction rate for mints or burns that failed on-chain. Target deposit verification time under 4 hours for T+0 settlement or under 24 hours for T+1, redemption approval time under 24 hours, and failed transaction rate under 0.1%—investigate any failures immediately to identify root causes.

Check the bridge processing metrics panel to see queue depths and processing time percentiles (p50, p95, p99) that reveal both typical performance and tail latencies affecting user experience.

Financial metrics

Track fees, liabilities, and reserve backing through metrics showing total fees collected (accumulated from deposit and redemption fees), outstanding redemption liability (sum of approved redemptions pending payout), bank account balance versus token supply for reserve ratio validation, and vault reserve ratio (total vault holdings divided by token supply with target of 100% or higher). Token supply must never exceed vault reserves including bank balance plus custodied assets—if the ratio drops below 100%, you have undercollateralization risk requiring immediate attention.

Set alert thresholds at reserve ratio under 105% for warning status (schedule reserve top-up), reserve ratio under 100% for critical status (halt redemptions until funded), and outstanding redemption liability exceeding 50% of bank balance for warning status (arrange liquidity).

Check the vault reserve panel in observability dashboards to see real-time reserve ratio with historical chart and alert status providing early warning of liquidity pressure.

Fiat bridge dashboard showing volume charts, processing queues, financial metrics, and trend graphs

Reconciliation workflow

Ensure fiat and token balances align daily to catch discrepancies before they compound. Navigate to Fiat Bridge > Reconciliation to review the reconciliation report showing bank account balance (current fiat balance from banking API or manual entry), total token supply (on-chain token supply minted via bridge), pending deposits (not yet minted, in verification queue), pending redemptions (approved but not yet paid, in payout queue), and expected bank balance calculated as (token supply plus pending deposits minus pending redemptions). Compare expected versus actual bank balance—if variance exceeds $100 or 0.1%, investigate before marking reconciliation complete.

DALP advantage: Unified registry. Traditional bridge systems require 3-way reconciliation across bank, blockchain, and internal database. DALP's on-chain registry eliminates the internal database as source of truth—blockchain state is authoritative. This reduces reconciliation points from 3 to 2, simplifying daily operations.

If balances don't match, investigate unmatched wire transfers (check bank for wires received but not recorded in platform), missed deposits (verify all wires have corresponding deposit records), unauthorized mints (review mint transaction history for unexpected entries), unpaid redemptions (check for redemptions marked paid but wires never executed), and bank fees (wire fees may reduce balance without corresponding platform transaction).

Check the reconciliation variance panel to see historical variance trends and identify chronic reconciliation issues requiring process improvements to eliminate recurring problems.

Reconciliation report showing bank balances, token supply, pending transactions, and variance analysis

Perform reconciliation daily before processing new deposits or redemptions. Conduct monthly comprehensive reconciliation with accounting team review to validate long-term accuracy and catch accumulated drift.

Troubleshooting with observability

When issues occur, dashboards provide the diagnostic starting point to identify root causes quickly without manual investigation across multiple systems.

Deposit not appearing in pending queue

When an investor reports a wire sent but the deposit doesn't show in the platform, first check the deposit receipt panel in the bridge dashboard for recent incoming wires. Navigate to Fiat Bridge > Deposit History and search by investor name or amount, verify the wire completed in the bank account (check bank portal), and check that the reference code format in the wire memo matches the expected format.

Common causes include wire in transit (banking system shows pending, not yet settled—wait 24 hours), wrong reference code (investor omitted or mistyped reference code in wire memo), amount below minimum (deposit amount less than configured minimum threshold), or banking API delay (if using automated matching, API sync may lag—refresh manually). To resolve, manually record the deposit via Record Deposit and link to investor by name if the reference code is missing, contact the investor to request a top-up or refund the original wire if below minimum, or force sync via Refresh Bank Transactions button if experiencing API delay.

Check the deposit matching panel in observability dashboards to see failed automatic matches awaiting manual linkage so you can proactively address them.

Cannot mint tokens for verified deposit

When a verified deposit is in queue but the mint operation fails, click View Mint Error on the failed deposit to review the error message (e.g., "Investor not eligible", "Insufficient mint capacity"). Navigate to Identity > Investors and search the investor's OnchainID, then check compliance status confirming the KYC claim is present and verified, the investor is not on any blocklists, and the investor meets token transfer restrictions.

Common causes include missing OnchainID (investor lacks verified OnchainID claim from issuer), expired KYC (investor's KYC claim expired since deposit initiated), blocklist (investor added to blocklist due to compliance issue), mint capacity (token contract has supply cap and cap reached), or role missing (platform lacks SUPPLY_MANAGEMENT_ROLE on token contract). Resolve by requesting investor complete KYC verification before minting if OnchainID is missing, requesting investor renew KYC then retry mint if expired, conducting manual review for potential refund or compliance resolution if blocklisted, increasing token supply cap via governance or using a different token if supply cap reached, or granting SUPPLY_MANAGEMENT_ROLE to platform address if role is missing.

Check the compliance metrics panel to see mint rejection reasons and identify systemic compliance issues requiring policy or process changes.

Redemption request rejected by platform

When an investor's redemption request is automatically rejected, navigate to Fiat Bridge > Rejected Redemptions and view the rejection reason for the specific request. Common reasons include insufficient token balance, banking details incomplete, amount below minimum threshold, or token transfers paused (contract-level emergency pause).

Resolve insufficient balance issues by informing the investor of their current balance (they spent tokens between request and approval), request complete wire details (account number, SWIFT) for incomplete banking, inform the investor they must request a larger redemption or accept queuing until minimum is met for below-minimum amounts, or wait for the issuer to unpause token transfers for paused transfers (typically after emergency investigation completes).

Check the redemption rejection panel to monitor rejection rate by reason and identify needs for investor education campaigns addressing common mistakes.

Wire transfer failed or returned

When a payout is marked as sent but the investor reports no receipt and the bank returns the wire with an error, check wire confirmation details in the platform, contact your bank for wire status (reference confirmation number), and review the bank's error message (typically: invalid account, beneficiary name mismatch, or SWIFT error).

Common causes include invalid account number (investor provided incorrect account number or IBAN), name mismatch (beneficiary name on wire does not match account holder name at receiving bank), bank does not accept international wires (some banks block SWIFT wires), or insufficient correspondent banking (SWIFT routing path fails at intermediate bank). When a wire returns, funds return to your issuer account but the redemption remains burned—contact the investor for corrected banking details, verify corrected details match KYC records, re-execute the wire with updated information, and update the redemption record with the new wire confirmation.

Track returned wires separately in Fiat Bridge > Wire Returns queue until successfully re-executed to maintain accurate liability accounting.

Check the wire execution panel to monitor wire success rates by currency and identify problematic correspondent banking routes requiring alternative banking relationships.

Reconciliation shows discrepancy

When daily reconciliation shows bank balance does not match expected balance, review Reconciliation > Variance Detail and check for unmatched transactions including unrecorded deposits (wires in bank but not in platform—search bank statement for unexpected wires), unpaid redemptions (platform shows paid but wire never executed—check wire confirmation numbers), bank fees (wire fees deducted from account—add as reconciliation adjustment), and manual mints (tokens minted outside bridge system via governance action or emergency mint). Calculate net variance after adjustments—if still discrepant, escalate to your accounting team for deeper investigation.

Resolve by manually recording unrecorded deposits via Record Deposit, re-executing wires for redemptions incorrectly marked paid, documenting bank fees by adding bank fee entries to the reconciliation log, and reviewing manual mints to verify they were authorized and properly recorded.

CRITICAL: Never ignore discrepancies. Reconciliation variance indicates either operational error or potential fraud. Investigate every variance before marking reconciliation complete to maintain financial integrity.

Check the reconciliation audit log to see historical variances, resolution actions taken, and identify recurring issues requiring process changes to prevent future occurrences.

High latency in compliance checks

When mint operations are slow (exceeding 30s per transaction), navigate to Observability > Compliance Metrics and check Compliance Check Duration panel. Identify average check time and p99 latency, then review Compliance Module Count to see how many modules are executing per transaction.

Common causes include too many compliance modules (10 or more modules executing per transfer), complex module expressions (modules using expensive on-chain lookups), or RPC gateway congestion (Besu node or ERPC gateway overloaded). Resolve by reducing module count (consolidate redundant compliance rules), optimizing module logic (simplify complex expressions, cache repeated lookups), or scaling RPC capacity (add ERPC replicas or Besu validator nodes).

Check the compliance check latency panel in observability dashboards to see p50/p95/p99 latencies and identify specific slow compliance modules requiring optimization.

Best practices

Deposit processing discipline

Process verified deposits within stated settlement periods (T+0 by end of day, T+1 by next business day) to maintain investor trust. Reconcile your bank account before processing each day's deposits to catch missed wires early. Maintain audit trail of all deposit verifications for compliance requirements—your auditors will request these records. Use unique reference codes for every deposit to eliminate manual matching and reduce error rates. Automate deposit matching via banking API wherever possible to reduce treasury workload and improve processing speed.

Redemption processing discipline

Verify banking details against KYC records 100% of the time to prevent misdirected wires that create operational headaches and compliance risks. Process redemptions strictly first-in-first-out to ensure fairness and regulatory compliance. Maintain sufficient bank balance for redemption liability by monitoring vault reserve ratio continuously. Monitor redemption queue depth and alert if approaching daily limits that might force queuing. Honor stated settlement periods rigorously (T+1, T+2, etc.) to preserve reputation and contractual compliance.

DALP DvP advantage: For asset redemptions (bonds, deposits maturing), use DvP settlement to atomically exchange asset tokens for stablecoin. This eliminates redemption timing risk—investors receive fiat-backed stablecoin instantly, then redeem stablecoin to fiat on their own timeline.

Reconciliation discipline

Perform daily reconciliation before processing new transactions—never skip this step as compounding errors become exponentially harder to resolve. Investigate discrepancies immediately rather than accumulating variance across multiple days. Maintain 3-way reconciliation across bank account, on-chain token supply, and platform database to catch errors at any integration point. Document all discrepancy resolutions in audit trail so future investigators understand what happened. Conduct monthly comprehensive reconciliation review with your accounting team to validate long-term accuracy.

Observability-first approach: Check the reconciliation variance panel every morning before beginning operations. Sustained variance indicates a systemic process issue requiring investigation rather than one-time error correction.

Liquidity management

Monitor vault reserve ratio in observability dashboards targeting 105% or higher to maintain healthy buffer. Set alerts for reserve ratio under 105% (warning) and under 100% (critical) to enable proactive response before liquidity crises. Plan liquidity for redemption waves during large investor exits or market stress periods when redemptions cluster. Maintain credit line or on-demand liquidity source for emergencies when immediate capital access is required. Consider staggered redemption processing if liquidity constrained—process largest redemptions first to maintain reserve ratio health.

Check the vault liquidity panel daily to see available reserves, pending redemption liabilities, and reserve ratio trend providing visibility into developing liquidity pressure.

Security discipline

Implement dual approval for large redemptions exceeding $50,000 to add accountability and reduce fraud risk. Use separate bank accounts for bridge operations—never commingle with operational funds as segregation simplifies reconciliation and audit. Monitor unusual deposit/redemption patterns using observability alerts for velocity anomalies that might indicate coordinated manipulation. Screen all transactions against sanctions lists automatically via compliance modules to avoid regulatory violations. Maintain secure storage of wire confirmation numbers as audit trail requirement for regulatory review. Restrict banking detail changes by requiring re-verification if an investor updates their bank account to prevent account takeover attacks.

Results

After completing these steps, you will have configured your fiat bridge with banking details and stablecoin settings establishing the foundation for operations. You will have chosen an on-ramp provider strategy (direct wires, third-party, or hybrid) balancing cost versus convenience. You will have established operational parameters for deposits and redemptions with clear SLAs investors understand. You will be able to process fiat deposits from verification through token minting with confidence in compliance. You will handle redemption requests from approval through wire execution with appropriate controls. You will have implemented observability-driven monitoring and reconciliation procedures that catch issues early.

Your fiat bridge now operates as treasury infrastructure connecting traditional finance with DALP vaults. Daily operations center on observability dashboards showing deposit queues, redemption liabilities, vault reserves, and reconciliation status in real time, providing the visibility treasury teams need to operate confidently at scale.

The observability integration means treasury teams diagnose issues from dashboards before investors report problems, shifting from reactive firefighting to proactive operations management. Check the bridge status panel each morning to verify queue depths, processing times, and reserve ratios are within targets before beginning daily processing.

Next steps

• Issue a stablecoin - Deploy platform stablecoin for full control over bridge mechanics
• Manage investors - Configure KYC workflows synchronized with OnchainID claims
• Admin settings - Configure roles for treasury operations and compliance teams
• Observability monitoring - Deep dive on bridge monitoring dashboards and metrics
• Compliance certification - Understand compliance requirements for money transmission
• Troubleshooting - General troubleshooting beyond fiat bridge specific issues