Stablecoin Selection & Settlement

One of the most critical decisions in the tokenization process is selecting a stablecoin for settlements. Stablecoins are digital assets pegged to traditional currencies like USD or EUR, providing price stability while enabling seamless blockchain transactions.

In the tokenization process, stablecoins are used to settle transactions, meaning that when an investor buys tokenized assets, payments are made using stablecoins. These transactions are cleared and recorded on a single blockchain ledger, ensuring transparency, security, and efficiency.

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Available Stablecoin Options

When tokenizing an asset, you must select which stablecoin will be used for transactions and settlements. Below are the available options:

1. USDC (USD Coin)

   1. Pegged To: US Dollar (1 USDC = 1 USD)

   2. Issuer: Circle, a regulated fintech company based in the U.S.

   3. Best For: Companies that prefer a highly regulated and transparent USD-backed stablecoin.

2. EURC (Euro Coin) - (Stobox 4 only)

   1. Pegged To: Euro (1 EURC = 1 EUR)

   2. Issuer: Circle, the same company behind USDC.

   3. Best For: Businesses operating in the Eurozone, ensuring seamless transactions in EUR.

3. EURS (Stasis Euro) - (Stobox 4 only)

   1. Pegged To: Euro (1 EURS = 1 EUR)

   2. Issuer: Stasis, a European fintech firm.

   3. Best For: Businesses operating in the Eurozone, ensuring seamless transactions in EUR.

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How Does the Settlement Process Work?

When an investor purchases tokenized assets, the payment is made using the selected stablecoin. The transaction is then:

1. Verified on the Blockchain: Ensuring security and immutability.

2. Cleared on a Single Ledger: The system records transactions on the chosen blockchain (Ethereum, Arbitrium, etc.).

3. Token Transfer Completed: The stablecoin payment is received, and the corresponding tokenized asset is transferred to the investor.

The process eliminates intermediaries, reducing costs and ensuring real-time settlements.

Note: Transactions on the blockchain require gas fees (a network commission), which are paid in the network tokens (ETH for Ethereum and Arbitrum, POL for Polygon, etc.)

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Finalizing Stablecoin Selection

Choosing the right stablecoin depends on:

• Your business’s currency preference (USD or EUR)

• Regulatory compliance in your jurisdiction

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