Bridge Stablecoins FAQ

These are externally shareable with end users.

Q: Who issues the stablecoin?
A: The stablecoin is issued by our partner, Bridge. Bridge mints, burns and holds the stablecoin reserves.

Q: How is the stablecoin backed?
A: Stablecoins are always backed 1:1 by the equivalent value of US dollars. The portfolio contains short-dated US Treasuries, overnight US Treasury repurchase agreements, money market funds, and cash. The portfolio is held in a segregated account for the benefit of token holders and custodied by our partners at BlackRock, Fidelity, and Apex.

Q: Are the reserves audited, and how often?
A: Yes, audits and transparency reports will be issued quarterly. These reports include asset balances, details of custodians, and third-party audits that verify the information.

Q: What are the regulatory and compliance frameworks?
A: We work with Bridge to issue the stablecoin, who is the regulated issuer of record. They are a registered Money Service Business (MSB) with US Money Transmitter Licenses (MTLs). Bridge adheres to all relevant financial and anti-money laundering regulations.

Q: How does minting and redeeming the stablecoin work?
A: Our stablecoin is minted by Bridge 1:1 with USD deposited on our platform. When looking to transfer the dollar value of our stablecoin off our platform, you can do so via redemption into other stablecoins such as USDC/T or USD (as applicable).

Q: What type of account are the reserves for our stablecoin held in? Are they protected in case of bankruptcy?
A: Our stablecoin reserves are held by Bridge in segregated, bankruptcy-remote accounts with regulated financial institutions. This ensures that the reserves are fully protected and kept separate from the operating funds of our company, Bridge or its custodians. Even in the unlikely event of bankruptcy, these reserves remain accessible and are safeguarded to ensure full backing of all issued stablecoins.