How USDV Stablecoin Works
USDV is a fiat-backed stablecoin: every token is pegged 1:1 to the US dollar and backed by equivalent reserves. Here is how minting, transfer, and redemption work.
What Is a Stablecoin?
A stablecoin is a digital token designed to maintain a stable value by being pegged to a fiat currency. USDV represents one US dollar on the blockchain—unlike volatile cryptocurrencies, its value is intended to stay at $1.00, making it suitable for payments, settlement, and treasury management.
Three Core Principles
USDV is built on the same fundamental model used by leading fiat-backed stablecoins: full collateralization, strict issuance controls, and on-chain settlement.
1:1 USD Peg
Each USDV token is designed to always equal one US dollar. The peg is maintained by issuing tokens only when equivalent USD is deposited, and redeeming tokens only when USD is returned.
100% Reserve Backing
Every USDV in circulation will be backed by reserves held at regulated financial institutions—cash and cash-equivalent assets equal to or greater than the total supply of USDV tokens.
On-Chain Settlement
Once minted, USDV moves on public blockchains like any ERC-20 token. Transfers are near-instant, programmable, and verifiable on-chain—24/7, without traditional banking hours.
The USDV Lifecycle
From creation to redemption, USDV follows a closed-loop model that keeps supply aligned with real USD reserves.
Mint
- 1Verified customer deposits US dollars via wire or ACH
- 2Vuntris confirms receipt of funds into reserve accounts
- 3Equivalent USDV tokens are minted and sent to the customer's wallet
Transfer
USDV can be sent to any compatible wallet address on supported blockchains. Transfers settle in seconds, with no intermediary banks. Businesses can integrate USDV for payments, payroll, and cross-border settlement via API.
Redeem
- 1Verified customer submits a redemption request through the platform
- 2USDV tokens are burned (permanently removed from circulation)
- 3Equivalent US dollars are wired back to the customer's bank account
How USDV Is Minted
New USDV is created only when verified customers deposit US dollars. No tokens are minted without corresponding reserve deposits.
Identity Verification (KYC/KYB)
Individuals and businesses must complete identity verification before accessing minting services. This ensures compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
USD Deposit
Customers will deposit US dollars into designated accounts at regulated financial institutions. Funds will be credited to Vuntris reserve accounts upon confirmation.
Token Minting
Once the deposit is confirmed, the smart contract mints an equal amount of USDV and transfers it to the customer's designated wallet address on the chosen blockchain network.
How USDV Is Redeemed
Redemption is the reverse of minting: tokens are destroyed and equivalent USD is returned, keeping the 1:1 peg intact.
Redemption Request
Verified customers submit a redemption order specifying the amount of USDV to redeem and the destination bank account for USD payout.
Token Burn
USDV tokens are sent back to Vuntris and permanently burned on-chain, reducing the total circulating supply by the redeemed amount.
USD Payout
After burn confirmation, an equivalent amount of US dollars is released from reserves and wired to the customer's bank account, typically within one to three business days.
Reserve Management
Vuntris will hold reserves in cash and cash-equivalent assets at FDIC-insured and other licensed financial institutions. Reserve composition will be disclosed publicly, with monthly third-party attestations confirming that total reserves equal or exceed the USDV tokens in circulation.
How the 1:1 Peg Is Maintained
The peg is enforced structurally, not by market trading. USDV is only minted when USD is deposited and only destroyed when USD is redeemed—so supply always reflects real dollars held in reserve. This direct issuance model eliminates the need for algorithmic stabilization or collateral auctions.
Multi-Chain by Design
USDV will be issued as an ERC-20 compatible token on multiple blockchain networks, enabling fast settlement wherever your business operates.
Vuntris Internet Financial Inc. has received an accepted FinCEN Money Services Business registration. Vuntris is not currently offering USDV issuance, customer fund custody, or money transmission services. The processes described above reflect how USDV will operate when services become available. No customer funds are accepted at this time.