Fiat-backed stablecoins

Issue a currency token that is pegged 1:1 with central bank reserves or commercial bank cash deposits

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Types of stablecoins

Stablecoins Chart

Rewrite the future of financial markets with fiat-backed stablecoins

There has been rising interest in fiat-backed stablecoins from banks and financial market infrastructure providers as they can co-exist alongside CBDCs, while offering many of the same benefits.

Intra-bank book transfers
Banks are exploring stablecoins or private tokens in their treasury departments to complete internal book transfers across branches. By using an internal token, the bank no longer relies on a third party, resulting in faster transfer times, near real-time settlement and reconciliation, and fewer points of failure.

Atomic securities settlement 
Fiat-backed stablecoins or ‘tokenized cash’ can allow for T+1 instead of the market’s current T+2 framework, in which a payment is settled two business days post-trade.

Convert assets into digital tokens 
Securities can be converted into digital tokens and traded and serviced with stablecoins, leading to fractional ownership and more transparent price discovery of asset classes. 

Cross-border transactions
Transact and move value directly and seamlessly between entities and across borders, while reducing risk.

Realize the power of fiat-backed stablecoins

Digital Token Lifecycle Management

There is rising financial market infrastructure and commercial bank interest in fiat-backed stablecoins as they can be easily minted, transferred, and redeemed. For example, a bank can deposit assets in exchange for a token that is defined and created on the network. That ‘minted token’ can be transferred to an owner to pay for an asset on the network and redeemed by a custodian for fiat currency.

Minting Diagram

Connect with R3

R3 is here to support you at every stage of your digital currency journey–from experimentation to production. Our Professional Services team offers a variety of standard and custom SaaS offerings to kick start issuance and development.

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