Cari DDA Tokenization (Mint/Burn)
Converting an existing Demand Deposit Account balance into an on-chain token on Prividium. The token is a direct liability of the issuing bank — not a stablecoin. FDIC insurance follows the deposit, not the token.
Step 1 · DDA Holder Identity (Inherited from Bank Onboarding)Policy-Enforced
"An existing bank customer logging into their treasury portal — no new customer-identification program runs because the bank already holds a complete CIP file from the original DDA opening."
The customer relationship sits at the issuing Cari member bank — Huntington National Bank, M&T Bank, KeyCorp, First Horizon, or Old National Bank [VERIFY current consortium roster]. Identity attestation, beneficial-ownership disclosure, OFAC screening, and ongoing transaction monitoring are already in place under existing BSA/AML obligations (12 C.F.R. § 21.21 for national banks; 31 C.F.R. § 1010.230 for beneficial-ownership).
The Cari mint operation is a ledger-representation change on an already-attested customer. No new customer-identification program runs; no new account is created at the bank; the deposit liability remains on the bank's balance sheet exactly as before. The wallet credential is a Prividium party-id provisioned by the issuing bank's treasury system, cryptographically bound to the customer's existing core-banking-system account number.
L4 ACCOUNT and L5 APPLICATION lit. The bank-side KYC inheritance is the structural innovation — every other tokenization pattern in the registry creates a new attestation surface. Cari mints do not. This is why compliance gravity sits at stage 2 (Identity) but the work has already happened off-path.
Step 2 · Bank Authorization (Mint Approval)Mixed EnforcementINGESTDETECTALERT
"A wire-room officer authorizing a debit memo against a customer account — the bank's internal controls validate that the customer holds clear funds and is in good standing before any movement is permitted."
The issuing bank's treasury system authorizes the mint. The bank verifies that the customer's DDA holds sufficient cleared balance, that the customer is not under hold, freeze, or restraint, and that the requested mint amount falls within any per-customer or per-bank programmatic ceilings encoded in the consortium charter.
Authorization is mixed-enforcement: the bank's internal core-banking controls (authorization workflow, dual-control on large amounts) are policy-enforced; the on-chain mint contract enforces the bank's signature and the per-bank programmatic ceiling code-side. Both legs must clear before the mint fires.
L3 EXECUTION (mint contract signature verification + ceiling check) · L4 ACCOUNT (customer wallet eligibility) · L5 APPLICATION (bank treasury system holding the audit trail) all lit. C9 (prudential) applies because the mint creates a ledger entry that must reconcile to the bank's general ledger as a memo entry against the underlying DDA.
Step 3 · Mint — DDA Token Issued on PrividiumCode-Enforced
"A bank's intraday liquidity transfer between sub-ledgers — the funds do not leave the bank, but their internal accounting representation moves from one books-of-record location to another."
The mint fires on Prividium. The Cari mint contract debits the customer's DDA on the issuing bank's books (a memo entry against the deposit), and credits the customer's Prividium wallet with the equivalent token amount. The on-chain operation is atomic with the bank-side memo entry through a Cari Network coordination message — both sides commit together or both revert.
L1 NETWORK, L2 CONSENSUS, L3 EXECUTION, and L4 ACCOUNT all lit: the full Prividium stack below the application layer processes the mint. The deposit liability remains on the bank's balance sheet exactly as before; the token represents a contractual claim against the deposit, NOT a new liability.
C11 (recordkeeping) attaches to the mint event — the on-chain transaction hash and the bank's general-ledger memo entry together constitute the audit trail. The reconciliation between the on-chain token supply and the bank's outstanding tokenized-DDA balance must clear at end-of-business each day under Cari Network operational rules.
Step 4 · On-Chain Holding (Customer Wallet)Policy-Enforced
"A treasury balance held at the bank earning standard demand-deposit interest — the customer can move it, redeem it, or hold it under existing account terms."
The customer holds the DDA token in their Prividium wallet. The token earns the same demand-deposit interest the underlying DDA earns — the bank does not bifurcate interest accrual between tokenized and untokenized portions of the deposit.
The customer can transfer the token to other consortium-bank customers via path C2 (interbank transfer), use it as the cash leg in a B2B payment via path C3 (commercial payment), participate in automated treasury sweeps via path C4 (liquidity sweep), or burn it back to standard DDA balance via this path's burn operation.
Holding the token does not change the customer's relationship with the issuing bank — the bank remains the deposit liability holder, the regulatory perimeter holder, and the point of customer service. L4 ACCOUNT (token state) and L5 APPLICATION (bank treasury system) lit, both policy-enforced.
Step 5 · Burn — Redeem Token to Standard DDA BalanceCode-Enforced
"A treasury sweep returning intraday-liquidity-product funds to the standard demand-deposit account — the same money, the same bank, a different ledger representation."
The customer or the issuing bank initiates a burn. The Cari burn contract debits the customer's Prividium wallet by the burn amount and credits the customer's DDA on the bank's books with the equivalent — atomic, coordinated identically to the mint operation in reverse.
The token supply contracts; the underlying deposit balance remains unchanged on the bank's balance sheet. The customer experiences the burn as a ledger representation change: the same dollar amount, now visible in their standard online-banking interface rather than their Prividium wallet.
L3 EXECUTION (burn contract) · L4 ACCOUNT (wallet state) · L5 APPLICATION (bank GL credit) lit. C9 (prudential) attaches because the bank's intraday liquidity exposure adjusts as the tokenized portion contracts; C11 (recordkeeping) attaches to the burn event for the GL reconciliation trail.
Resolved 5 steps across 1 chain(s). 0 threshold(s) triggered. Frameworks: Common Reporting Standard / FATCA.
Coverage notes: 5 disclosed gap(s).
Deposit vs Stablecoin Comparator
Side-by-side compliance comparison of tokenized deposits (bank liability, FDIC pass-through) vs stablecoins (non-bank reserve-backed liability) across 14 regulatory dimensions — the structural distinction GENIUS Act §13 codifies.