> For the complete documentation index, see [llms.txt](https://docs.xft.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xft.finance/idn/technical/payments/idn-flows.md).

# IDN Flows

<mark style="color:purple;">COUNTERPARTIES</mark>

ACH Operator = Federal Reserve\
FEDX = CBDC\
JPMD = tokenized bank deposit\
VISA = Visa stablecoin running on VisaNet\
Credit Unions\
ODFI\
RDFI\
XFT

<mark style="color:purple;">IDN FLOW</mark>

Originator → ODFI → XFT → RDFI → Receiver\
Originator →  XFT → RDFI → Receiver

***

<mark style="color:purple;">USER FLOW</mark>

1. Alice sends a request to Bank A “Pay Bank B $5 for the benefit of Bob”
2. Bank A verifies Alice’s identity and adequacy of Alice’s funds
3. Bank A notifies Bank B of the payment
4. Bank B verifies Bob has an account
5. Bank B sends confirmation to Bank A
6. Both banks send confirmation to their respective customers.

<mark style="color:purple;">PUSH / SWAP / CREDIT</mark>

Originator → ODFI → ACH Operator → RDFI → Receiver\
Originator → ODFI → XFT → RDFI → Receiver\
stablecoin→USD→Fed rails→USD→stablecoin\
stablecoin → FEDX → stablecoin\
tokenized deposit1 → FEDX → tokenized deposit2\
tokenized deposit1 → tokenized deposit1\
tokenized deposit1 → VISA → tokenized deposit2\
tokenized deposit1 → VISA → USD\
ODFI → XFT → Burn ODFI + Mint RDFI

***

### <mark style="color:red;">TOKENIZED DEPOSIT PAYMENT FLOWS</mark>

*Originator -> ODFI -> XFT*

<figure><img src="/files/tY4JK9atSHeeaC4Qqhrm" alt=""><figcaption></figcaption></figure>

```
1. Originator sends Pay $5 to Receiver request to ODFI
2. ODFI verifies funds internally
3. ODFI sends Transfer $5 to RDFI request to XFT
4. XFT burns $5 from ODFI account internally
5. XFT mints $5 to RDFI account internally
6. XFT sends Notify $5 credit message to RDFI
7. RDFI verifies Receiver account internally
8. RDFI sends Confirm acceptance message to XFT
9. XFT sends Settlement complete message to ODFI
10. ODFI sends Payment sent confirmation to Originator
11. RDFI sends Payment received confirmation to Receiver
```

*Originator -> XFT*

<figure><img src="/files/6HaftogZQJPeEAcZ7xJ3" alt=""><figcaption></figcaption></figure>

```
1. Originator sends "Pay $5 to Receiver" request to XFT
2. XFT verifies tokenized deposit amounts and wallet existence
3. XFT burns $5 from ODFI wallet
4. XFT mints $5 to RDFI wallet
5. XFT sends confirmation message to Originator
6. XFT sends credit message to RDFI
```

***

<mark style="color:purple;">RESOURCES</mark>

[Visa Banks](https://usa.visa.com/dam/VCOM/regional/na/us/pay-with-visa/documents/eligible-financial-institutions.pdf)\
[Wells Fargo ACH](https://smallbusinessresources.wf.com/digitize-the-payment-process-with-ach/)\
[PNC Bank ACH](https://www.pnc.com/insights/personal-finance/spend/what-is-an-ach-payment.html)\
[Correspondent banking](https://docs.xft.finance/learn/flows/payments/correspondent-banking)