Redeeming USDX
This Page Outlines How USDX is Redeemed
Context
USDX can be redeemed for the underlying mortgage assets or fiat (USD).
Redemption Execution
Stable is working towards USDX redemptions with instant settlement (atomic redemptions). Today, execution and time to settlement depend on the redemption asset, which can be mortgage asset(s), mortgage backed securities (MBS), stablecoin, or fiat.
Mortgage asset and MBS redemptions occur onchain and can be processed 24/7/365.
Fractions of mortgage asset and MBS redemptions occur in StableUSD
Example: a 10,000,000 USDX mortgage asset redemption may receive 20 mortgage assets and 82,180.29 StableUSD
Stable may limit the type and number of mortgage assets and MBS available
Fiat redemptions can execute:
Onchain 24/7/365 with the redeemer receiving StableUSD, a GENIUS-compliant stablecoin backed by US Treasuries
Offchain as a Wire or ACH transfer
Offchain requires 1-3 business days to settle (1-5+ for international)
Redemption Details
Approved entities that have undergone KYB/KYC can redeem USDX for mortgages, mortgage backed securities, dollar-backed stablecoins, or dollars with various fees and settlement times.
Mortgages
500,000 USDX
500,000 USDX
Market Rate
Mortgage Backed Securities
1,000,000 USDX
100,000 USDX
Market Rate
StableUSD
100,000 USDX
25,000 USDX
0.5%
USD Cash (1-3 Days)
100,000 USDX
25,000 USDX
0.5%
If real estate was deposited, and USDX was minted against the value of that real estate, then USDX can be redeemed to pay off the balance of that debt subject to the terms of the relevant agreement(s).
Note: Currently all redemptions take 7 days to process. We aim to speed this up soon.
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