Accepts local fiat, issues a fully 1:1-backed settlement claim, and redeems it at par. Holds the reserves and runs participant KYB.
The issuer is the settlement node for its currency: it accepts local fiat into a correspondent account, issues a settlement claim fully backed 1:1, and redeems it at par. Reserves stay in its jurisdiction.
Receives local currency from a participant into its own account and holds it in reserve with 1:1 backing. The fiat never leaves the issuer's jurisdiction and stays under local currency control.
For the fiat received, it issues a settlement claim (mint) with 1:1 backing. This is a unit of account for settlement secured by the reserve, not a standalone monetary instrument.
On the participant's request it redeems the settlement claim (burn) and returns fiat from the reserve at par. The 1:1 backing holds at every point in time.
Runs KYB and participant identification under its own AML and sanctions-screening procedures, and regularly confirms reserve coverage publicly (Proof of Reserve).
The issuer's working cycle: from fiat arriving in the correspondent account to funds returning from the reserve at redemption. The 1:1 backing is maintained at every step.
The diagram is illustrative and simplifies the actual flow.
The settlement token is described by a two-layer formula. Layer A is the base settlement claim against the issuer; Layer C is a regulated form where the jurisdiction provides for one.
The base layer: a settlement claim against the issuer, backed by fiat 1:1 and redeemable at par under KYB/B2B. It is a unit of account for settlement within the participant network, not a publicly circulating monetary instrument.
The additional layer: a regulated form of the settlement token where the issuer's jurisdiction provides for one. Applicability and the precise legal characterisation are determined by local law and confirmed at onboarding.
This material is for information only and is not legal or investment advice. The instrument’s qualification is determined by the applicable law of the fund’s jurisdiction.
The economics of the role are described qualitatively — the direction of revenue in words, without rates, fees, or percentages in figures.
The main economics of the role — income from placing the accepted reserves within the limits permitted for the issuer in its jurisdiction.
A fee for issuing the settlement claim when fiat arrives from a participant.
A fee for buying back and redeeming the claim when fiat is returned to the participant at par.
Income on funds temporarily free between fiat arriving, the claim being issued, and its redemption.
The direction of revenue is shown qualitatively. Specific terms are agreed at partner onboarding.
A banking, EMI, or equivalent licence — or registration — in the issuer's jurisdiction. The issuer holds reserves with 1:1 backing and runs its own KYB, AML, and sanctions-screening procedures.
Surelle/4pay is a technology provider without a licence of its own. The licensed activity and regulatory responsibility rest with the resident issuer.
The precise legal classification of the settlement token is determined at KYB onboarding and depends on the issuer's jurisdiction.
This information is for reference only and is not legal or investment advice. The specific legal classification is determined at KYB onboarding and depends on the jurisdiction.