Issuance & Redemption

Tokenized MMF Issuance (USYC on Arc)

Native tokenized MMF issuance on Arc — code-enforced NAV gate, whitelist at mint, no bridging. Circle/Hashnote USYC.

Vendors

Circle · Hashnote · Arc

Compliance center

Code-enforced NAV at Discovery + whitelist-gated mint at Authorization

issuancetokenized-fundmoney-marketusychashnotecirclearcaccredited-investornav-oracle
Filter by shape:
|
M1 · ISSUANCEUSYC issuance on Arc·4 stations(1 compliance, 3 infra)·circle
S1INTENTS2S3DISCOVERYS4NEGOTIATIONS5S6S7FACILITATIONS801Subscription02NAV Check03Mint04Custody
3+5 shape system
GatePre-condition — blocks if it failsMonitorConcurrent — observes without haltingObligationPost-settlement — reports after the factsolid = codedashed = policy
How to read this diagram
Each station on the rail represents a compliance or infrastructure event in the USYC issuance on Arc path. Hover any station to inspect it. The shape tells you what kind of event it is. The ring tells you how it's enforced.
Gate Monitor Obligation| Ingress Crossing Transform Settlement Venue
This path at a glance
4 stations across 4 of 8 segments. 1 are compliance checkpoints, 3 are infrastructure.
2 code-enforced2 policy-enforced
L5 APPLICATIONL4 ACCOUNTL3 EXECUTIONL2 CONSENSUSL1 NETWORKARC
L5 APPLICATIONCUSTODIAN
L4 ACCOUNTCUSTODIAN

Step 1 · Investor SubscriptionPolicy-Enforced

"The investor's subscription request — fiat or USDC is committed for fund share purchase."

Investor subscribes via Circle portal. L5 Application (Circle UI) and L4 Account (Circle compliance engine) are lit. KYC (D1) and accredited investor verification fire at L4. Licensing (D8) checked at account opening. This is the investor eligibility gate — accredited status required per Reg D or 1940 Act.

Counterparty
Circle (issuer, acquired from Hashnote)
Latency
Minutes · compliance verification
Finality
Subscription accepted — mint authorized
Vendors
Circle Smart Wallet · Circle Mint (issuer-facing surface · institutional onboarding) · Arc Smart Account (ERC-4337 account-abstraction · USDC-paid gas semantics) · Circle Mint custody (institutional · custody of USDC reserve issuance pipeline) · third-party institutional custodians (Anchorage · BitGo · Coinbase Custody) · Circle Payments Network (CPN — institutional-payment orchestration over Arc and other Circle-supported chains) · Circle Compliance Engine (sanctions · BSA/AML · OFAC SDN integration)
Chain
Arc (Circle Internet Financial (sole Sequencer operator at launch; decentralization on roadmap))
L5 APPLICATIONL4 ACCOUNTL3 EXECUTIONL2 CONSENSUSL1 NETWORKARC
L3 EXECUTIONNAV oracle
◆ Enforcement Line — code-enforced at this layer

Step 2 · NAV VerificationCode-EnforcedINGESTDETECTALERT

"The NAV attestation — on-chain oracle confirms current fund value before mint."

NAV from Hashnote's calculation agent is published on-chain at L3. This is the only tokenized MMF where NAV enforcement is code-enforced: the mint contract reads the on-chain NAV and gates issuance accordingly. D9 (prudential) and D16 (programmable compliance) are the active domains.

Counterparty
Hashnote calculation agent / S&P Dow Jones Indices
Latency
~1s · oracle read
Finality
NAV confirmed — mint proceeds
Vendors
Arc DEX (native AMM primitive) · Chainalysis OFAC Oracle (on-chain SDN-list enforcement primitive · code-enforced at the contract layer) · Circle CCTP v2 (canonical USDC cross-chain bridge — burn-and-mint model · regime-crossing primitive for USDC issuance across Arc, Ethereum, Base, Solana, and other CCTP-supported chains) · Arc Confidential Transfers (opt-in transactional privacy — Circle has stated opt-in privacy but not publicly committed to a specific construction)
Chain
Arc (Circle Internet Financial (sole Sequencer operator at launch; decentralization on roadmap))
L5 APPLICATIONL4 ACCOUNTL3 EXECUTIONL2 CONSENSUSL1 NETWORKARC
L3 EXECUTIONMINT
L2 CONSENSUSMINT
◆ Enforcement Line — code-enforced at this layer

Step 3 · USYC Mint on ArcCode-Enforced

"The issuance event — USYC shares are minted natively on Arc."

USYC minted natively on Arc (not bridged). L3 Execution (mint contract with whitelist gate) and L2 Consensus (Malachite BFT, permissioned validators) are lit. The whitelist is code-enforced at L3 — only verified addresses can receive shares. This is native issuance, not a wrapped representation.

Counterparty
Circle USYC mint contract (Arc)
Latency
~2s · Arc block time
Finality
Final on Arc block confirmation
Vendors
Circle Sequencer (Circle-operated at launch · decentralization on roadmap · OP Stack-derived sequencing semantics) · Arc DEX (native AMM primitive) · Chainalysis OFAC Oracle (on-chain SDN-list enforcement primitive · code-enforced at the contract layer) · Circle CCTP v2 (canonical USDC cross-chain bridge — burn-and-mint model · regime-crossing primitive for USDC issuance across Arc, Ethereum, Base, Solana, and other CCTP-supported chains) · Arc Confidential Transfers (opt-in transactional privacy — Circle has stated opt-in privacy but not publicly committed to a specific construction)
Chain
Arc (Circle Internet Financial (sole Sequencer operator at launch; decentralization on roadmap))
L5 APPLICATIONL4 ACCOUNTL3 EXECUTIONL2 CONSENSUSL1 NETWORKARC
L5 APPLICATIONWALLET
L4 ACCOUNTWALLET

Step 4 · Investor USYC WalletPolicy-Enforced

"The investor's fund share balance — USYC received and accruing yield."

Newly minted USYC arrives in the investor's wallet on Arc. L4 Account and L5 Application lit. Recordkeeping (D11) and tax reporting (D12) obligations fire. USYC is value-accruing: balance stays fixed, price increases with NAV. Can be used as collateral on Arc for DvP and margin.

Counterparty
Investor's verified wallet on Arc
Latency
Instant on mint confirmation
Finality
Final · USYC available for transfer and collateral use
Vendors
Circle Smart Wallet · Circle Mint (issuer-facing surface · institutional onboarding) · Arc Smart Account (ERC-4337 account-abstraction · USDC-paid gas semantics) · Circle Mint custody (institutional · custody of USDC reserve issuance pipeline) · third-party institutional custodians (Anchorage · BitGo · Coinbase Custody) · Circle Payments Network (CPN — institutional-payment orchestration over Arc and other Circle-supported chains) · Circle Compliance Engine (sanctions · BSA/AML · OFAC SDN integration)
Chain
Arc (Circle Internet Financial (sole Sequencer operator at launch; decentralization on roadmap))

Resolved 4 steps across 1 chain(s). 0 threshold(s) triggered. Frameworks: Common Reporting Standard / FATCA.

Coverage notes: 5 disclosed gap(s).

Other Issuance & Redemption Paths

SETTLEMENT CHAINS
Arc