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Introduction

What is Digital Currency Consortium?

A little background on USDF and the smart contract

USDF is a fungible, restricted marker on Provenance representing USD and can be viewed here.

The marker for USDF usdf.c is managed by a smart contract that codifies the rules for KYC transfers, mint/burn, and governance of who can perform actions on the marker, and what actions they can perform.

The smart contract requires a conversion of deposits for the USDF that is minted by the bank. The value underpinning the USDF the bank is minting is a deposit balance at the bank. The smart contract verifies the bank’s signature has permissions, and transfers the USDF to the destination address (blockchain account or, simplistically, a wallet) signed for by the bank.

When the bank burns USDF, the USDF smart contract reduces how much USDF it has minted. Once the USDF is burned, the bank unmarks the fiat in the corresponding deposit account that previously backed that USDF.

The smart contract verifies that the receiving account for the USDF has an approved Consortium bank passport, i.e., the account is owned by a customer that has been through a Consortium bank’s AML/KYC processes. The transaction is rejected if that is not the case.

What DCC provide in relation to USDF?

Digital Currency Consortium (DCC) refers to the github repository that houses two critical components for interacting with USDF:

  • The smart contract wasmd code used to instantiate and migrate the USDF smart contact.
  • The bank middleware application you would integrate with in order to perform the actions needed to be a member of the USDF Consortium.

Audience

This document is written primarily about our DCC middleware built for bank engineering teams and their consultants with the goal of providing a seamless and quick onboarding process for integrating a bank's core system with the USDF smart contract.