What does it mean to tokenize Euros and redeem EUROC?

Tokenization is the process by which a real-world asset, such as a Euro, is made available as a crypto-native token. There are three steps to tokenizing Euros into EUROC:

  1. A user sends Euros to an issuer's bank account.
  2. The issuer sends a request to the EUROC smart contract to mint an equivalent amount of EUROC.
  3. The issuer makes the newly-minted EUROC available to the user while holding the Euros they were sent in reserve.

When you redeem EUROC, you essentially initiate the reverse process, exchanging a crypto-native token for the real-world asset it represents. In the case of redeeming EUROC for Euros:

  1. A user with EUROC requests a redemption from a EUROC issuer.
  2. The issuer takes the user’s EUROC and sends a request to the EUROC smart contract to take that EUROC out of circulation.
  3. The issuer sends Euros from its reserves to the user’s bank account (net of any fees).
Have more questions? Submit a request.
Have more questions? Submit a request