> 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/learn/flows/payments/stablecoins.md).

# Stablecoins

## Minting and Redeeming

```
MINT
1. Authenticate
2. Deposit USD
3. Convert USD to Stablecoin
4. Transfer Stablecoin to Customer

REDEEM
1. Authenticate
2. Create Deposit Address
3. Send Stablecoin to XFT
4. XFT Transfers USD to Bank Account
```

***

## Stablecoin P2P Transfers

Digital currency transfers using stablecoins pegged to fiat currencies. Enables fast, low-cost transactions with blockchain security. Settlements occur in real-time without intermediaries.

<details>

<summary><strong>Participants</strong></summary>

* Sender
* Recipient
* Stablecoin issuer
* Blockchain network
* Wallet providers

</details>

#### Authorization

1. Sender initiates a transfer via their wallet.
2. Transaction is broadcast to the blockchain network.
3. Network verifies sender’s balance and transaction validity.
4. Transaction is approved and added to the blockchain.

#### Processing

5. Transaction is processed on the blockchain.
6. Smart contracts execute any required conditions.
7. Network nodes confirm the transaction.

#### Settlement

8. Stablecoin is credited to the recipient’s wallet.
9. Transaction is permanently recorded on the blockchain.

<mark style="color:purple;">REVERSING TRANSACTIONS</mark>