Operating Environment
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Fiat Reserve
$0
FTHUSD reserve at TCB
USDF Liability
$0
Total issued USDF
Member Wallet
0 USDF
Member balance
NFT / Claims
0
Partner positions
Member Joins Private Network
A new member is onboarded into the FTH private monetary network. After identity verification and OFAC sanctions screening, the member is activated with an empty USDF wallet and receives bank instructions for funding.

Member Profile

NameAlex Morgan
StatusActive
KYC TierTier 2 Approved
NetworkFTH Private (Members Only)
USDF Balance0.00 USDF
Transaction Limits$10,000 / tx · $50,000 / month

TCB Deposit Instructions

Bank: TCB National Bank
Account: FTHUSD Issuer Reserve Account
Routing: ****7821
Account #: ****4521
Reference: FTH-MBR-4829
Wire USD to this account to initiate a mint request.

Onboarding State

REGISTERED→ KYC_SUBMITTED→ VERIFIED→ OFAC_CLEARED→ ACTIVE
Step 1 of 6
Mint USDF from USD
Member wires USD into the FTHUSD reserve account at TCB. Once funds are confirmed and compliance clears, FTHUSD mints matching USDF inside the private network and credits the member.
USD Wire Received
→
Compliance Check
→
Approval Queue
→
FTHUSD Mints USDF
→
Member Wallet Credited
Before
0 USDF
→
After
1,000 USDF

Double-Entry Journal

AccountDebitCredit
FIAT_CASH (Reserve)$1,000.00
USDF_LIABILITY (Issued)$1,000.00
MBR_WALLET (Alex Morgan)1,000.00

Mint State Machine

REQUESTED→ WIRE_CONFIRMED→ COMPLIANCE_CLEARED→ APPROVED→ MINTED→ CREDITED
Step 2 of 6
Redeem USDF Back to USD
Member returns USDF to the issuer. FTHUSD burns the tokens and sends matching USD from the reserve account to the member's bank.
Alternative path — demonstrates what happens if the member chooses to redeem rather than invest.
Redemption Request
→
USDF Returned to Issuer
→
4-Eyes Approval
→
USDF Burned
→
TCB Wire to Member
→
Settled
Before
1,000 USDF
→
After
0 USDF

Double-Entry Journal

AccountDebitCredit
USDF_LIABILITY (Issued)$1,000.00
FIAT_CASH (Reserve)$1,000.00
MBR_WALLET (Alex Morgan)1,000.00

Redemption State Machine

REQUESTED→ UNDER_REVIEW→ APPROVED→ BURNED→ WIRE_DISPATCHED→ SETTLED
Step 3 of 6
Convert USDF to External Stablecoin
The private network exits through an issuer-controlled conversion. FTHUSD burns the member's USDF, sends matching USD through TCB to Tether or Circle, and the external issuer delivers USDT or USDC to the member's designated wallet.
Alternative path — compliance-controlled bridge from private network to public stablecoin rails.
Convert Request
→
USDF Burned
→
TCB Wire to Tether
→
Tether Confirms
→
1,000 USDT Delivered
Before
1,000 USDF
→
After
0 USDF + 1,000 USDT

Double-Entry Journal

AccountDebitCredit
USDF_LIABILITY (Issued)$1,000.00
FIAT_CASH (Reserve)$1,000.00
MBR_WALLET (Alex Morgan)1,000.00
EXT: Tether Settlement (Wire)$1,000.00
EXT: 1,000 USDT → member walletOff-ledger (external chain)

Conversion State Machine

REQUESTED→ USDF_BURNED→ WIRE_TO_ISSUER→ ISSUER_CONFIRMED→ USDT_DELIVERED
Step 4 of 6
Participate in Partner Trade
The member deploys USDF into an approved partner opportunity. FTHUSD burns the USDF, settles USD to the partner through TCB, and the member receives a smart-contract NFT receipt representing the position and maturity rights.
Subscribe to FTHSouk
→
1,000 USDF Burned
→
$1,000 to FTHSouk via TCB
→
NFT Receipt Issued
Before
1,000 USDF
→
After
0 USDF + 1 NFT

NFT Receipt #NFT-0001 ACTIVE

ProductFTHSouk Gold Trade
IssuerFTHUSD
Partner / VendorFTHSouk
Principal$1,000.00
Target Payout$1,060.00
Target Return6.0%
Maturity90 days
Settlement FormulaCONDITIONAL_RETURN
Barrier ConditionsGold ≥ $3,000/oz triggers modified settlement
Early TerminationSubject to early exit terms, partial forfeiture

Payout subject to underlying trade conditions.

Not insured. Not a bank deposit. Not guaranteed.

Subject to loss, delay, or modified settlement under offering terms.

Double-Entry Journal

AccountDebitCredit
MBR_WALLET (Alex Morgan)1,000.00
USDF_LIABILITY (Issued)$1,000.00
FIAT_CASH (Reserve)$1,000.00
PARTNER_SETTLEMENT (FTHSouk)$1,000.00
NFT_CLAIM (NFT-0001)1 receipt

Partner Trade State Machine

COMMITTED→ USDF_BURNED→ SETTLED_TO_PARTNER→ NFT_ISSUED→ ACTIVE
Step 5 of 6
Maturity & Settlement
When the partner returns funds at maturity, FTHUSD confirms the USD receipt, mints the corresponding USDF, and credits the member according to the NFT terms.
FTHSouk Returns $1,060
→
FTHUSD Confirms at TCB
→
Mints 1,060 USDF
→
Member Wallet Credited
→
NFT Marked REDEEMED
Before
0 USDF + 1 NFT
→
After
1,060 USDF

NFT Receipt #NFT-0001 REDEEMED

ProductFTHSouk Gold Trade
Principal$1,000.00
Actual Payout$1,060.00
Realized Return6.0%
StatusMATURED / REDEEMED
Settlement Date2026-07-13

Double-Entry Journal

AccountDebitCredit
PARTNER_SETTLEMENT (FTHSouk)$1,060.00
FIAT_CASH (Reserve)$1,060.00
USDF_LIABILITY (Issued)$1,060.00
MBR_WALLET (Alex Morgan)1,060.00
NFT_CLAIM (NFT-0001)Status → REDEEMED

Settlement State Machine

ACTIVE→ MATURITY_REACHED→ FUNDS_RECEIVED→ USDF_MINTED→ MEMBER_CREDITED→ REDEEMED
Full Cycle Complete
Private issuance, controlled settlement, compliant conversion, programmable partner deployment, tokenized claim receipt, and closed-loop maturity redemption.
FTH is a private, members-only monetary network where FTHUSD controls issuance, redemption, settlement, compliance, and partner integrations across bank rails, stablecoin bridges, and tokenized opportunity flows.
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