Subscription

• 1. Visa identifies idle cash in user accounts via GET /api/neobank/idle_cash.
• 2. Visa initiates USDX subscription with XFT via POST /api/neobank/transfer.
• 3. Visa wires USD to XFT's bank.
• 4. XFT processes subscription, issues temporary certificate.
• 5. XFT wires USD to custodian.
• 6. Custodian buys U.S. Treasuries via primary dealer.
• 7. XFT sets USDX price using Pricer contract via GET /api/usdx/reference_price.
• 8. XFT sets Claimable Timestamp in USDXManager.
• 9. After timestamp, XFT initiates minting via POST /api/usdx/mint.
• 10. USDXManager proposes mint to Token contract.
• 11. XFT approves and signs transaction.
• 12. USDX tokens minted to Visa's wallet via POST /api/usdx/mint.

Yield Accrual and Distribution

• 1. Treasuries yield accrues.
• 2. XFT calculates daily yield via POST /api/yield/calculate.
• 3. Smart contract updates USDX balances (rebasing) via POST /api/yield/rebase or price (accumulating) via POST /api/yield/update_price.
• 4. Visa sees increased USDX value or quantity.
• 5. Process repeats daily for yield distribution via POST /api/yield/distribute.

Redemption

• 1. Visa initiates redemption request via POST /api/usdx/burn.
• 2. USDXManager contract receives request.
• 3. USDX tokens burned from Visa's wallet via POST /api/usdx/burn.
• 4. XFT notified of redemption.
• 5. XFT instructs custodian to sell Treasuries via POST /api/investment/sell.
• 6. Primary dealer executes Treasury sale.
• 7. Custodian receives USD from sale.
• 8. XFT processes redemption.
• 9. USD wired from XFT's bank to Visa.
• 10. Visa receives USD in account.
• 11. Transaction recorded in XFT's systems.
• 12. Visa updates user balances.

• Mastercard has $67,500,000 in idle cash across user accounts.

• 1. Mastercard identifies $67,500,000 idle cash via GET /api/neobank/idle_cash.
• 2. Mastercard transfers $67.5M USD to XFT using POST /api/neobank/transfer.
• 3. XFT mints 67,500,000 USDX tokens to Mastercard’s wallet via POST /api/usdx/mint.
• 4. XFT aggregates and invests the transferred funds into U.S. Treasuries via POST /api/investment/purchase.
• 5. XFT calculates daily yield using POST /api/yield/calculate (0.0137% for 5% annual yield).
• 6. XFT distributes yield by calling POST /api/yield/distribute to rebase USDX tokens.
• 7. Mastercard’s balance increases from 67,500,000 to 67,509,247 USDX tokens after one day.
• 8. Mastercard requests redemption by calling POST /api/usdx/burn.
• 9. XFT sells U.S. Treasuries via POST /api/investment/sell.
• 10. XFT wires proceeds from the sale back to Mastercard’s bank account.

Result

• Mastercard earns yield of 9,247 USDX tokens after one day, bringing the total balance to 67,509,247 USDX tokens.

USDX

• USDX invests inflows from idle neobank cash balances into Franklin OnChain U.S. Government Money Fund FOBXX or an equivalent.

Increased AUM	USDX inflows grow fund size
Enhanced Liquidity	More cash reserves
Risk Reduction	Diversification, steady inflows
Capital Preservation	Large buffer against volatility
Yield Enhancement	Access to broader investments
Transparency	Daily third-party reporting
Higher Revenue	Increased management fees

NAV Token

• Closed-end funds (CEFs) are traditionally illiquid because they have a fixed number of shares and do not issue new shares after their initial public offering. To "open" a CEF, XFT enables a process similar to ETF creation through tokenization. Investors exchange a basket of underlying assets or cash for "creation tokens" that represent NAV, which can then be used to mint CEF shares or redeem illiquid assets. These tokenized shares are tradable on secondary markets, providing liquidity to what was previously a closed system.

USDX

Cash Management	Earn low-risk yield on your cash with the benefits of instant, 24/7 minting and redeeming.
Borrowing & Lending	Keep earning yield when you pledge USDX as collateral for borrowing.
Bilateral Settlement	Instantly settle transactions while continuously earning yield.

• XFT tokens offer enhanced investor protection and lower risk compared to existing stablecoins.

Problem

• The U.S. national debt grows due to high borrowing costs and inefficient demand for Treasuries, limiting the government's ability to manage debt sustainably.

Solution

• XFT's tokenized money market fund "USDX" channels massive cash inflows into U.S. Treasuries, increasing demand, lowering yields, and reducing borrowing costs, helping manage the national debt.

• 1. Neobanks funnel deposits into the tokenized fund.
• 2. Fund purchases U.S. Treasuries with those inflows.
• 3. Increased demand lowers Treasury yields.
• 4. U.S. government borrows at lower interest rates.
• 5. Reduced borrowing costs help slow national debt growth.

• Source

Problem

• 1. Idle non-yielding cash balances
• 2. Collateral immobility
• 3. Money market fund outflows during market stress
• 4. Low demand for US treasuries

• Traditional MMF: Investor sells MMF shares to get cash for margin call, causing fund outflows.

Solution

• 1. Tokenized US treasuries fund "USDX"
• 2. Rebasing token for yield distribution
• 3. Neobank cash inflows -> treasuries

• Tokenized MMF: Investor uses MMF tokens directly as collateral, avoiding sale and fund outflows.

• Source

• "Competing products such as closed-end mutual funds or unit investment trusts (UITs) don’t enjoy this luxury. Not having anyone behind them to create or redeem shares and manage the market price results in them imposing higher charges and regularly trading at notable premiums or discounts to their NAVs."

• Source

• 1. create tokens!

• 1. USDX is a tokenized US Treasuries fund
• 2. NAV token is a second layer of liquidity for closed-end funds

Product	Client	Use Case
USDX	Franklin Templeton	FOBXX inflows
	Visa	Cash management, yield-bearing collateral
NAV Token	Franklin Templeton	Closed-end fund discount reduction
	Goldman Sachs	Arbitrage

• Visa -> USDX -> FOBXX