Frequently asked
questions

USDSM is a digital dollar issued by Stable Mint, a licensed European financial institution. Each USDSM token is backed 1:1 by US dollar reserves, meaning every token in circulation represents one US dollar held securely in reserve.

USDSM is classified as an Electronic Money Token (EMT) under the European Union's Markets in Crypto-Assets Regulation (MiCA). This is a specific legal category of digital asset — regulated as electronic money, not as a speculative cryptocurrency. As an EMT, USDSM carries the same legal protections as traditional electronic money, including the right to redeem your tokens for US dollars at par value at any time.

USDSM is issued by Stable Mint, a licensed Electronic Money Institution (EMI) authorised and supervised in Europe under MiCA. Stable Mint is regulated by the Malta Financial Services Authority (MFSA) and operates under ongoing supervisory obligations, including capital requirements, reserve management standards, and compliance with European Anti-Money Laundering regulations.

Stable Mint is a regulated financial institution with a verifiable licence — not a decentralised protocol or anonymous organisation. You can verify Stable Mint's regulatory status through the MFSA's public register.

Yes. USDSM is issued under MiCA, the European Union's dedicated regulatory framework for crypto-assets, which came into full effect in 2024. MiCA establishes uniform rules across all 27 EU member states for the issuance and supervision of digital assets.

As an Electronic Money Token, USDSM is classified as electronic money under EU law. This classification comes with mandatory consumer protections, including the right to redeem tokens at par value at any time, requirements for reserve asset safeguarding, and ongoing regulatory supervision of the issuer. For partner platforms operating in regulated markets, this regulatory foundation is what makes USDSM a compliant settlement layer.

Stable Mint is a licensed European Electronic Money Institution with passporting rights across the EU and EEA. The Stable Mint platform is also available to users in recognised third countries, subject to applicable regulatory requirements and Stable Mint's customer due diligence obligations.

Certain jurisdictions are excluded based on international sanctions, anti-money laundering regulations, and Stable Mint's risk appetite. Users from jurisdictions on the FATF high-risk list or the EU AML high-risk third country list are not eligible to open an account. A full list of supported countries is available during the registration process.

USDSM itself, as an ERC-20 token on a public blockchain, can be held and transferred by anyone with a compatible wallet. However, redemption for fiat currency — converting USDSM back to US dollars — requires a verified Stable Mint account.

The key difference is regulation. USDSM is an Electronic Money Token issued under MiCA — the EU's dedicated regulatory framework for crypto-assets. This classification comes with specific legal requirements that most stablecoins do not meet.

Regulatory status. USDSM is issued by a licensed EMI under direct regulatory supervision. USDT (Tether) does not hold MiCA authorisation and is not compliant for use as a settlement token within the EU. USDC (Circle) holds MiCA authorisation via a separate EU entity, making it one of a small number of compliant alternatives.

Reserve safeguarding. USDSM reserves are governed by MiCA Article 54 — legally segregated from Stable Mint's operating funds, with a minimum of 30% held in EU credit institution deposit accounts. Token holders have a legal claim on reserves in an insolvency scenario. This level of reserve protection is a regulatory requirement, not a voluntary commitment.

Right to redeem. Under MiCA, USDSM holders have a statutory right to redeem their tokens for US dollars at par value at any time. This right is enshrined in EU law — not dependent on the issuer's terms and conditions.

Vertical integration. Unlike USDT and USDC, which are tokens you hold but need third-party infrastructure to use, USDSM is part of a complete payment platform. You can accept payments, settle, hold, convert, and pay out — all through Stable Mint. The token and the infrastructure are built together.

Yes. Every USDSM in circulation is backed 1:1 by US dollar reserves. These reserves are held in accordance with MiCA Article 54, which sets strict requirements for how Electronic Money Token issuers must manage reserve assets.

Under these requirements, a minimum of 30% of reserve funds must be held in segregated deposit accounts at EU credit institutions. The remainder is held in secure, low-risk, highly liquid financial instruments denominated in the reference currency. Reserve assets are safeguarded and legally ring-fenced from Stable Mint's own operating funds. This is a regulatory obligation, not a voluntary policy.

MiCA imposes rigorous requirements on how Electronic Money Token reserves are held and managed. Stable Mint is required to maintain reserves in compliance with Article 54, subject to ongoing supervisory oversight by the Malta Financial Services Authority.

Reserve assets must be safeguarded, segregated from the issuer's operating funds, and held to strict composition and liquidity standards. As an authorised EMI, Stable Mint is subject to regular regulatory reporting requirements and examination of its reserve management practices. The regulatory framework itself — with its mandated safeguarding rules, supervisory oversight, and enforcement mechanisms — provides the structural assurance that reserves are maintained as required.

Under MiCA, Electronic Money Token reserves are legally safeguarded and segregated from the issuer's operating funds. In an insolvency scenario, token holders have a claim on the reserve assets. This is fundamentally different from unregulated tokens, where holders may be treated as unsecured creditors with no priority claim.

Beyond the regulatory protections, the USDSM smart contracts include additional security features: they are pausable (allowing emergency shutdown if necessary), include compliance controls for fraud prevention, and are built on an upgradeable architecture that allows vulnerabilities to be addressed without disruption. Stable Mint operates under continuous regulatory supervision throughout.

Stable Mint applies multiple layers of security to protect your account and funds.

Authentication. The Stable Mint app enforces two-factor authentication (2FA) on all accounts, along with device-based sessions. This means that even if your password were compromised, access to your account requires a second verification step and a recognised device.

Custody. Digital assets are secured using multi-party computation (MPC) technology. This means that no single private key exists — keys are split across multiple independent parties and never reconstructed. This eliminates the single point of failure that has caused losses at other platforms.

Compliance controls. All transactions are screened in real time against sanctions lists and anti-money laundering rules. Wallet addresses are screened via Elliptic, a leading blockchain analytics provider. Outbound payments are subject to Verification of Payee checks to ensure funds reach the intended recipient.

Infrastructure. The Stable Mint platform is hosted on enterprise-grade cloud infrastructure with encryption at rest and in transit, operating under continuous regulatory supervision.

Stable Mint offers accounts for both individuals and businesses.

Individual accounts. Available to persons aged 18 or over who are resident in a supported jurisdiction. You will need to complete identity verification (KYC) before you can deposit, withdraw, or hold funds.

Business accounts. Available to legal persons — companies, partnerships, and other corporate structures — incorporated in supported jurisdictions. Business onboarding includes Know Your Business (KYB) verification, beneficial ownership identification, and screening against sanctions and PEP lists.

Certain categories of customer are not eligible, including entities unable to verify beneficial ownership, unlicensed money transmission services, and entities subject to international sanctions. Stable Mint reserves the right to decline applications based on its regulatory obligations and risk appetite.

As a licensed financial institution, Stable Mint is legally required to verify the identity of all users before they can transact. This is a standard Know Your Customer (KYC) process — the same as opening a bank account or registering with any regulated payment provider.

What you'll need. A government-issued photo ID (passport, national identity card, or driving licence) and proof of address (a recent utility bill or bank statement). Business accounts require additional documentation including company registration, beneficial ownership structure, and authorised signatory details.

How long it takes. Identity verification is typically completed within minutes. In some cases, additional checks may be required — for example, if documentation needs manual review — which can take up to 24 hours.

Why it's required. KYC verification is a legal obligation under EU Anti-Money Laundering regulations. It protects both you and the financial system by preventing fraud, money laundering, and terrorist financing. Every licensed bank, payment institution, and EMI in Europe is subject to the same requirements.

You can redeem your USDSM for fiat currency by creating a Stable Mint account and withdrawing directly to your bank account. The process is as follows:

Create a Stable Mint wallet. Sign up for an individual account at stablemint.io. This gives you a personal wallet where you can hold your USDSM balances.

Complete identity verification. As a regulated financial institution, Stable Mint is required to verify your identity before processing withdrawals. This is a standard Know Your Customer (KYC) process: you will be asked to provide a government-issued ID and proof of address. Verification is typically completed within minutes. This requirement exists under EU Anti-Money Laundering regulations and is the same process required by any licensed bank or payment institution — it is a legal requirement designed to protect both you and the financial system.

Connect your bank account. Link the bank account you wish to withdraw to.

Withdraw. Initiate a withdrawal from your Stable Mint wallet. Your funds are converted and sent directly to your connected bank account via SEPA Instant, with an estimated processing time of 20–30 seconds. Withdrawals are processed automatically with no manual approval gate.

Deposits. You can fund your Stable Mint wallet via SEPA Instant (including pay-by-bank and manual bank transfer) and card payments (Visa and Mastercard). Support for FPS (GBP) and SWIFT (USD) is coming soon.

Withdrawals. Withdrawals are currently available via SEPA Instant to your connected bank account, with FPS (GBP) and SWIFT (USD) to follow.

Currency. Deposits and withdrawals are currently processed in EUR, with foreign exchange handled automatically by Stable Mint on conversion to and from USDSM. Additional currency support will be introduced alongside new payment rails.

There are no fees on deposits or withdrawals. A foreign exchange spread applies when converting between EUR and USDSM, reflecting prevailing market conditions and Stable Mint's pricing model. This spread is applied automatically at the point of conversion and is the only cost associated with using USDSM through the Stable Mint platform.

Limits. The minimum deposit and withdrawal amount is €5. There is no maximum on deposits or withdrawals. Transactions above €10,000 (or the equivalent in USD) may trigger enhanced due diligence requirements, which could involve additional verification steps. There are no limits on currency conversions within the platform.

USDSM is natively issued on Etherlink, a Tezos Layer 2 network that is fully EVM-compatible. The token follows the ERC-20 standard, meaning it can be held in any compatible wallet and transferred on-chain like any other ERC-20 token.

USDSM is also available on Ethereum, Base, and Arbitrum via LayerZero. USDSM is built as an Omnichain Fungible Token (OFT) — a token standard developed by LayerZero that enables native cross-chain transfers. Unlike wrapped tokens, which create a synthetic representation on the destination chain, OFT uses a burn-and-mint mechanism: tokens are burned on the source chain and natively minted on the destination chain. This means every USDSM token on every chain is a real USDSM token — not a wrapped derivative — maintaining a unified supply across all networks.

You are free to hold, transfer, and use USDSM on any supported network. Redemption for fiat currency is handled through your Stable Mint account.

USDSM can be exchanged through several channels:

Stable Mint platform. The simplest route. Deposit EUR via SEPA Instant or card, and your funds are automatically converted to USDSM in your wallet. To convert back, initiate a withdrawal and receive EUR directly to your bank account.

Curve Finance. USDSM is available in a stablecoin liquidity pool on Curve, one of the largest decentralised exchanges for stablecoin swaps. You can swap USDSM for other stablecoins directly on-chain via the USDSM Curve pool on Etherlink.

Jumper Exchange. For cross-chain swaps and bridging, USDSM is available on Jumper Exchange, which aggregates liquidity across chains and protocols — allowing you to swap or bridge USDSM in a single transaction.

As USDSM is an ERC-20 token on multiple EVM-compatible networks, it can also be integrated into any decentralised exchange or DeFi protocol that supports standard ERC-20 tokens on the supported chains.

Yes. Stable Mint issues multiple fiat-denominated Electronic Money Tokens, including USDSM (US dollar) and EURSM (euro). All Stable Mint stablecoins are issued under the same regulatory framework, with the same reserve safeguarding requirements, the same consumer protections, and the same compliance standards described above.

The only material difference between tokens is the underlying fiat currency to which they are pegged and the corresponding reserve assets held. Unless otherwise specified, the information on this page applies equally to all Stable Mint stablecoins — current and future.