> For the complete documentation index, see [llms.txt](https://vnx.gitbook.io/vnx-global/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vnx.gitbook.io/vnx-global/developer/flows/mint-flow.md).

# Mint Flow

*Sequence and timing for issuing VCHF or VGBP from either fiat or crypto funding, across new issuance and proprietary-trade fulfilment paths.*

## Overview

A mint moves customer value into a VNX-issued stablecoin and delivers it to either the customer's Platform balance or a whitelisted external wallet. Two funding paths are supported — fiat (wire to VNX bank, then onward to the fiduciary reserve) and virtual-asset (crypto deposited to a transitional wallet, converted to fiat, then minted). Each funding path can be fulfilled by either a new issuance or a proprietary-trade fill from VNX's liquidity pool. Average processing times: fiat path \~1 business day, crypto path \~3 hours, with Travel Rule exchange affecting the latter.

## Actors

| Actor                       | Responsibility                                            |
| --------------------------- | --------------------------------------------------------- |
| Customer                    | Initiates funding and mint order; owns destination wallet |
| Customer Bank               | Sends fiat wire                                           |
| VNX Bank Account            | Receives fiat                                             |
| Fiduciary Bank              | Holds segregated stablecoin reserves                      |
| VNX Platform                | Compliance, ledgering, mint orchestration                 |
| VNX Liquidity Pool          | Source of stables for prop-trade fulfilment               |
| VNX Transitional Wallet     | Holds incoming crypto pre-AML/Travel Rule                 |
| External regulated provider | External regulated provider that converts crypto↔fiat     |

## Sequence diagram

```mermaid
sequenceDiagram
    participant C as Customer
    participant CB as Customer Bank
    participant VB as VNX Bank Account
    participant FB as Fiduciary Bank
    participant VP as VNX Platform
    participant LP as VNX Liquidity Pool
    participant TW as VNX Transitional Wallet
    participant CCP as External regulated provider
    Note over C,VP: Fiat path
    C->>CB: 1. Initiate fiat transfer
    CB->>VB: Funds arrive
    VB->>VP: Credit user account
    C->>VP: 2. Order Stablecoin purchase
    alt Option 1 — Issuance
      VP->>FB: 3. Move fiat to reserve
      FB-->>VP: Reserve increased
      VP-->>C: Mint stables to wallet (1 bd)
    else Option 2 — Prop trade
      VP->>LP: 4. Source stables from pool
      LP-->>C: Stables delivered (1 bd)
    end
    Note over C,CCP: Crypto path
    C->>TW: 1. Transfer crypto/tokens
    TW->>VP: AML + due diligence
    VP->>CCP: Convert virtual assets to fiat
    CCP-->>VP: Fiat
    VP-->>C: Deliver stables (≈3h, Travel Rule applies)
```

## Step-by-step

### Fiat path

1. Customer wires fiat from their bank to VNX's segregated clients bank account.
2. Funds arrive; VNX credits the customer's Platform account once due diligence is satisfied.
3. Customer submits a mint order through the API or dashboard.
4. **Option 1 — New issuance:** VNX moves the fiat to the fiduciary reserve, then mints fresh tokens to the destination wallet (Platform balance or whitelisted external wallet).
5. **Option 2 — Proprietary trade:** VNX fills from its liquidity pool of previously-issued stables; same delivery surface.

### Crypto path

1. Customer transfers crypto to a VNX transitional wallet.
2. VNX runs AML screening on the originating wallet and transaction.
3. VNX converts the virtual asset to fiat via the External regulated provider.
4. Resulting fiat (minus VNX commission) drives mint issuance or prop-trade fill.
5. Tokens delivered to Platform balance or whitelisted external wallet; Travel Rule data exchanged for external-wallet delivery.

## Timing and SLAs

| Step                                 | Expected duration | Threshold / note                          |
| ------------------------------------ | ----------------- | ----------------------------------------- |
| Fiat funding to Platform credit      | Minutes to hours  | Subject to wire rails (SWIFT 1-2 days)    |
| Mint order to delivery (fiat path)   | \~1 business day  | Average per BP                            |
| Mint order to delivery (crypto path) | \~3 hours         | Variable; Travel Rule exchange can extend |
| Reserve daily reconciliation         | T+1               | Required by custody policy                |

## Edge cases and failure modes

* **Compliance hold** — AML, sanctions, or Travel Rule exception; the mint is parked and the held state appears when the client polls `/private/querySupplyChanges`.
* **Travel Rule timeout** — counterparty VASP unresponsive; transaction either cancels or completes off-Travel-Rule per policy.
* **Reserve adequacy** — depegging investigation triggers at >0.5% deviation lasting >24 hours; >1% deviation triggers public disclosure and BMA notification.
* **Daily redemption pressure** — redemptions >10% of circulating supply trigger liquidity-position review (relevant for net mint flows).
* **Below threshold** — VCHF/VGBP minimum issuance is CHF/GBP 100,000.

## Controls and reconciliation

Every mint touches the segregated Safeguard Reserve Account (fiat) or the omnibus chain wallet (delivery), both reconciled daily to the customer sub-ledger. Decision-approval evidence is retained for five years. On-chain mint signing requires an M-of-N multi-sig quorum with at least two signatories.

## Related

* [Integrate Stablecoin Mint](/vnx-global/developer/guides/integrate-stablecoin-mint.md)
* [Travel Rule](/vnx-global/developer/concepts/travel-rule.md)
* [Transfers](/vnx-global/developer/api/transfers.md)
* [Minting and Redemption](/vnx-global/institutional/products/minting-and-redemption.md)
* [Glossary](/vnx-global/glossary.md)