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The flow

The payment asset is any cash asset on the DA Registry, such as a bank’s tokenized deposit or a stablecoin. Its issuer mints and burns it on request, on its own registry: for a tokenized deposit, the bank mints on a deposit and burns on a withdrawal; a stablecoin’s issuer does the same. The example is a tokenized deposit. Between Tx 2 and Tx 3, the payment asset pays for orders. In a subscription the investor’s payment goes to the fund’s treasury, rounded up to the payment asset’s decimals; in a redemption the treasury pays the investor, rounded down; in a dealing cycle the treasury moves only the net. See Subscriptions, Redemptions and Dealing cycles.

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Worked example

From the demo (chapter 3), where the payment asset is a bank’s tokenized deposit:

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What the payment issuer signs, and sees

The payment issuer acts on its own registry only: it signs its asset’s mints and burns, and is party to its own registry’s batch in each settlement. Its node vets nothing of NodeAsset’s, and it signs nothing of the fund’s: the payment asset and its decimals are terms of the fund’s consent, which the fund’s registrar and treasury sign. What it runs, signs and sees is on Bank and payment registry.

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Do it

Related: Settlement across registries · Subscriptions · Redemptions