USIG FAQs
Inside Our
Collateral Coin
Answers to common questions about USIG, including product structure and safeguards, issuance and redemption, custody and transfers, and institutional use cases.
USIG is tokenized debt that can function as a “collateral coin” backed by Treasurys, designed to be an on-chain, stable-value product. It is a yield-bearing, programmable form of U.S. Treasury–backed value built for wholesale financial markets, supporting on-chain collateral mobility, cash-like utility for institutional users, and real-time settlement workflows. For more details and to download supporting materials, visit our dedicated page on USIG.
USIG Digital builds institutional, low-risk digital tokenized debt products engineered to meet rigorous risk and compliance expectations in wholesale finance. The USIG collateral coin is our flagship product, designed to provide on-chain stable value with a structure and controls designed for institutions. For more details, visit our Company page.
USIG is a security built as a stable-value product, not a stablecoin. USIG can perform as a collateral coin for institutions in wholesale finance use cases, with safeguards and operational controls designed to meet institutional diligence requirements.
USIG as a collateral coin is a tokenized, on-chain representation of high-quality collateral, typically U.S. Treasurys, designed for real-time use in institutional financial markets. It enables assets to be moved, pledged, and reused instantly across repo, margin, and lending transactions. Unlike stablecoins built for payments, a collateral coin is purpose-built for collateral mobility, capital efficiency, and yield preservation at institutional scale.
Tokenized Treasury collateral refers to U.S. Treasury exposure packaged into a debt security that is tokenized, thus held and transferred on-chain. As a collateral coin, USIG is designed to preserve institutional-grade controls and recordkeeping while enabling continuous transferability and programmable workflows.
Wholesale markets depend on stable value and high-quality collateral, yet many on-chain stable value products were not built with the structural protections, governance, and operational controls institutions require. USIG is designed to bridge that gap by pairing Treasury collateral with institutional structuring and controls suitable for always-on markets.
The USIG collateral coin is designed for institutional participants in wholesale financial markets. Firms that require a stable-value product with Treasury backing, controlled operations, transparent reporting, and a structure aligned with institutional risk standards are our target audience.
USIG is designed to support institutional workflows including repo financing, securities lending collateral, and bank liquidity/treasury operations, as well as (longer-term) derivatives margin. More broadly, USIG supports programmable collateral, risk-aware on-chain cash, and real-time settlement concepts where stable value and settlement certainty matter.
USIG is being built with participation across key wholesale finance roles: banks, broker-dealers, asset managers, market infrastructure providers, and other institutional stakeholders. Practically, this matters because those firms help shape operating requirements (eligibility, controls, reporting, custody models) and improve the likelihood that our collateral coin can be adopted across real institutional workflows rather than remaining a niche instrument.
Ecosystem participation makes USIG more usable in production. When multiple institutional roles align around the same instrument, it becomes easier to support consistent onboarding standards, custody and wallet workflows, transfer permissions, reporting expectations, and interoperability across counterparties. This reduces bespoke integrations and operational lift for each new participant.
For USIG, consortium governance means the product’s standards and operating model are shaped with input from multiple institutional participants rather than dictated unilaterally by a single sponsor. The practical outcome is stronger separation of duties and more durable operating conventions around controls, role segmentation, approvals, and product evolution.
USIG is backed by a collateral pool designed around U.S. Treasury bills and controlled cash balances within an institutional structure intended to support stable value, liquidity and predictable lifecycle management.
The USIG collateral coin is designed as an institutional debt-style product with safeguards engineered for wholesale finance. Core elements include collateral restrictions to Treasurys/cash, bankruptcy-remote structuring, overcollateralization, daily transparency and reporting, redemption mechanics designed to support par liquidity and third-party operational controls across key functions.
USIG restricts collateral to U.S. T-bills and controlled cash balances, rather than broad or discretionary collateral types. This matters because it anchors stable value to high-quality assets that institutions already treat as eligible collateral.
USIG is structured so the collateral and holder obligations sit within a dedicated, transaction-document-governed structure, designed to reduce exposure to sponsor or intermediary insolvency. For institutions, this is a core safeguard: it clarifies how assets are held and how holder rights are enforced.
USIG is designed so the collateral pool exceeds the senior obligations represented by USIG, creating a protective buffer. The goal is to reduce loss risk under stress and support stable value expectations.
USIG is designed as a senior obligation supported by a restricted collateral pool, with protections defined in transaction documents. In practice, this is intended to prioritize holder claims and align the instrument with institutional expectations for collateral-backed senior exposure.
USIG is designed to support daily visibility into assets, liabilities and key covenants through reporting and reconciliation processes. This helps institutions operate with governance-grade oversight in always-on markets.
USIG includes redemption mechanics designed to support liquidity and stable-value behavior, with daily processes and defined conditions intended to reduce prolonged dislocations. The purpose is to support par settlement expectations and institutional liquidity needs.
USIG is designed to reduce key drivers of stable-value dislocation through a combination of Treasury backing, structural protections, daily transparency, redemption mechanics and third-party operational controls. No product eliminates risk entirely, but USIG is engineered specifically around the risks institutions focus on: structure, liquidity, control and transparency.
Operational controls refer to the governance and execution of key functions: cash movements, collateral management, verification, reporting, minting/redemption operations and recordkeeping. With USIG, these are performed and/or overseen by established third parties within the transaction structure. The goal is to reduce operational concentration risk and improve institutional confidence.
Dual ledgering means USIG combines on-chain transferability with an authoritative off-chain registry for institutional-grade recordkeeping. On-chain activity supports transfers, while the registry maintains the controlling record and is synchronized with blockchain activity on a 24/7 basis. If a discrepancy occurs, the authoritative record governs ownership.
Yes. The USIG collateral coin is designed for always-on transferability and operational processes, supporting institutional workflows that increasingly operate beyond traditional banking and settlement windows.
The USIG collateral coin is designed to support wholesale finance workflows where stable value and collateral certainty are essential, including: repo financing, derivatives margining, securities lending collateral, bank liquidity and treasury operations.
USIG can be posted as tokenized Treasury collateral to support repo-style secured funding. Its always-on transferability is designed to support time-sensitive funding needs and roll/unwind cycles in modern market environments.
USIG is designed to support the posting and movement of stable-value collateral as exposures change. This includes workflows where institutions need predictable collateral value and the ability to move margin without relying on limited settlement windows.
USIG is designed to serve as stable, transferable collateral for securities lending workflows, supporting collateral posting, collateral substitution and return/recall lifecycle events.
Bank liquidity refers to using USIG as an on-chain stable-value instrument for treasury operations – cash management, liquidity positioning and payment-adjacent workflows in wholesale contexts – while maintaining institutional-grade structuring and controls.
The USIG collateral coin is intended for eligible institutions, including Qualified Institutional Buyers (QIBs) where applicable, subject to onboarding, allowlist controls and applicable legal and compliance requirements.
Onboarding is designed to meet institutional diligence standards and typically includes KYC/AML screening, legal entity and beneficial ownership verification, verification of bank instructions and wallet ownership/control, registry setup for authoritative recordkeeping, approval notices and allowlist access for eligible participants.
Allowlists restrict transfers to eligible, onboarded participants. This supports compliance, governance, controlled distribution and institutional risk management, ensuring USIG does not operate as an unrestricted public token.
Yes, subject to verification and allowlist controls. Institutions often require multiple wallet addresses for operational, treasury or segregation purposes.
USIG is designed to support custody through approved digital custodians as well as approved private wallets. Specific options depend on onboarding requirements, verification and operational controls.
Yes. The USIG collateral coin can be held in approved private wallets, including institutional-grade configurations such as MPC or multi-sig setups, subject to onboarding and allowlist controls.
The USIG collateral coin includes redemption mechanics designed to support stable value and liquidity. Redemption is designed to be processed through controlled cash rails and verification steps consistent with institutional governance, with reporting that supports reconciliation and oversight.
USIG is designed with daily operational processes, including daily reporting and redemption-related mechanics. The specific redemption schedule, conditions and processing details are governed by transaction documents and the operating model.
USIG will rebase to $1 (par) on a daily basis and will pass along interest generated to the token holders in the form of fraction of USIG tokens. It is designed to support stable value and par liquidity expectations through its structural safeguards and redemption mechanics.
USIG is designed for institutional cash rails and contemplates USD settlement for redemption proceeds, consistent with wholesale finance workflows.
Delivery-versus-payment (DvP) is a settlement method designed to ensure asset delivery and payment exchange are synchronized, reducing settlement and counterparty risk. USIG is designed to support DvP-style settlement where applicable within on-chain workflows.
USIG is designed to support more immediate settlement concepts and synchronized delivery/payment workflows, reducing reliance on long settlement windows where counterparty risk can accumulate.
Yes. The USIG collateral coin is designed to be yield-bearing, reflecting the return profile of underlying Treasury collateral net of applicable fees and expenses.
Yield is based on the collateral’s return profile (e.g., Treasury bill yields), less expenses and fees within the structure. The precise economics depend on the operating model and transaction documents.
Interest accrues to holders based on recorded ownership and holding periods. Allocation is supported by reconciliation and reporting processes designed for institutional transparency.
Fees depend on the structure and service providers supporting issuance, operations, custody, reporting and other functions. Institutions typically review fees as part of diligence alongside structure and operational controls.
USIG’s lifecycle is designed to include: 1. investor onboarding (KYC/AML, eligibility verification); 2. subscription/funding (USD rails and, where supported, stablecoin conversion rails); 3. collateral pool funding and Treasury purchases under investment guidelines; 4. registry and ledger updates for institutional recordkeeping; 5. minting and delivery of USIG to the holder’s wallet; 6. transfers among eligible holders (subject to allowlists); 7. daily reconciliation and reporting; and 8. redemption and settlement of proceeds via controlled cash rails.
Institutions require separation of duties, controlled accounts, verification and clear governance. USIG’s workflow uses distinct roles to support institutional controls, resilience and accountable execution across the product lifecycle.
The trustee/account bank role is designed to control transaction accounts, oversee cash movements, support verification and reconciliation and enforce transaction terms consistent with institutional structures and holder protections.
The tokenization/registrar role is designed to maintain the authoritative ownership record and ensure on-chain activity aligns with institutional-grade recordkeeping and reporting.
The collateral manager role is designed to execute collateral purchases, manage reserve funding actions and operate within defined investment guidelines for the collateral pool.
An exchange agent can support workflows where stablecoins are converted to USD for participation, subject to structure rules, approvals and controlled processes.
Yes. The USIG collateral coin is designed with institutional compliance expectations in mind, including BSA/AML/KYC processes and other governance controls that support wholesale market participation. Exact compliance obligations depend on investor type, jurisdiction and the governing transaction documents.
Yes. USIG is designed as an institutional product and requires onboarding that includes KYC/AML screening and related due diligence processes to establish eligibility and support compliant participation.
USIG is designed for institutional users in wholesale finance. Retail distribution is not the intended operating model.
USIG uses a transaction document–governed structure with distinct institutional roles – issuer, trustee/account bank, collateral manager and registrar/tokenization agent – to support controlled cash rails, verification, reporting and recordkeeping across the lifecycle.
USIG is designed to support compliance alignment expected by institutions, including AML/KYC processes and related controls. Tax and regulatory reporting considerations depend on the structure and investor profile.
