Institutional and regulatory architecture
Separate responsibilities, by design.
The architecture is designed around deposits held within the regulated banking system rather than around a standalone reserve asset.
PartyDoesDoes not
Participating bankAccepts and holds the deposit on balance sheet; meets its contractual, compliance and oversight obligations.Issue tokens. Operate the ledger.
Regulated issuerEstablishes the arrangements; mints; performs redemption and burn when DC is presented; applies KYC, AML and sanctions controls at issuance and redemption.Keep the ownership ledger. Hold the deposit. Take part in secondary transfers.
Deposit CoinRecords mints, burns and transfers performed by others; maintains the common ledger, which is the authoritative system of record for token supply, token ownership and the bank deposit interests represented by each token position; provides associated infrastructure and services.Accept deposits. Issue tokens. Custody money or tokens. Execute transfers. Move bank funds. Match trades. Provide liquidity. Redeem or burn tokens. Operate an exchange or settlement venue.
Distribution / liquidity partnerAcquires DC from the issuer and distributes it; provides market liquidity by buying DC from and selling DC to holders; may hold DC inventory and present DC to the issuer for redemption; keeps its own books.Hold the deposit. Operate the ledger.
Market participantsHold and transfer DC on supported networks; may obtain fiat through a distribution / liquidity partner, or present DC directly to the issuer for redemption, subject to the applicable redemption terms; keep their own books.Hold the deposit. Operate the ledger.
Deposit ownership and deposit-insurance eligibility are distinct. A Deposit Coin holder has a claim against the bank deposit liabilities represented by its token position. FDIC insurance eligibility depends on the holder satisfying applicable identification and other requirements, including KYC. Deposit-insurance treatment and any interest to holders are addressed in the whitepaper and remain subject to the applicable arrangements.