Web2 Economic Circle
Last updated
Was this helpful?
Last updated
Was this helpful?
ASEAN USD can be minted by converting the US Dollar along with certain ASEAN fiat currencies like the Singapore Dollar, Thai Baht, Vietnamese Dong, and Lao Kip. This currency is fully backed by reserves, consisting entirely of US dollar deposits, US treasuries, and cash equivalents.
Businesses have the option to establish a LADT Account, which enables them to convert ASEAN fiat currencies or US dollars into ASEAN USD. When a business deposits ASEAN fiat or US dollars into their LADT Account, LADT issues an equivalent amount of ASEAN USD to the business. This issuance of new ASEAN USD is commonly referred to as “minting,” and it contributes to the increase in the circulation of ASEAN USD.
Similarly, when a business wants to exchange their ASEAN USD for ASEAN fiats or US dollars, the business can deposit ASEAN USD into their LADT Account and request to receive ASEAN fiats currencies or US dollars. This process of redeeming ASEAN USD is known as “burning”. This process takes ASEAN USD out of circulation.
A portion of the ASEAN USD minted will be introduced into the NewPay ecosystem, catering to retail customers for purchases, and enhancing liquidity through offline mobile payment.
