# Tokenized deposits

The core that powers UR is the concept of tokenized deposits. A tokenized deposit is a one-to-one, fully-backed digital representation of fiat money held by UR's regulated Swiss banking entity (Fiat24, FINMA-supervised), recorded on the Mantle Network.

For example, when a user holds 100 USD24 tokens in their UR wallet, they have a legal claim to $100 USD. The token is not a stablecoin or a synthetic asset. It is a deposit receipt issued by UR's banking entity (Fiat24, FINMA-supervised), with the same legal standing as a traditional bank deposit.

## Why tokenize deposits?

Representing fiat balances as on-chain tokens unlocks capabilities that traditional banking infrastructure cannot offer:

* **Instant settlement**: transfers, FX conversions, and card spending settle in milliseconds, not days. When a user taps their Mastercard, UR burns the corresponding tokens and approves the transaction atomically.
* **Atomic operations**: FX conversion is a single on-chain transaction (burn one currency token, mint another). No intermediary holding accounts, no T+1 settlement.
* **Composability**: because balances are standard tokens on Mantle Network, they can interact with smart contracts, enabling programmable finance (e.g., automated savings, partner-triggered pull payments).
* **Transparency**: balances and transaction history are on-chain and auditable. No reconciliation lag between what the user sees and what the system records.

## Supported currencies

UR issues tokenized deposits in seven currencies:

| Token | Currency                |
| ----- | ----------------------- |
| EUR24 | Euro                    |
| USD24 | US Dollar               |
| CHF24 | Swiss Franc             |
| CNH24 | Chinese Yuan (offshore) |
| SGD24 | Singapore Dollar        |
| JPY24 | Japanese Yen            |
| HKD24 | Hong Kong Dollar        |

Each token is minted when fiat is deposited and burned when fiat is withdrawn. The token is not backed by a separate reserve — it *is* the deposit, a direct liability on the bank's balance sheet.

## User experience

On the UI, tokenized deposits are simply displayed as fiat balances. Users see "€100.00" rather than "100 EUR24". The on-chain mechanics are invisible unless the user chooses to inspect their wallet directly.

## The off-ramping flow: from crypto to fiat balance

This is the process of a user converting their digital assets (e.g., USDC) into spendable fiat balance in UR.

<figure><img src="/files/b6fDwcGgiCcv5VygLQ0g" alt=""><figcaption></figcaption></figure>

## The spending flow: from fiat balance to a real-world purchase

This is how a user spends their tokenized deposit balance using the UR Mastercard. UR instantly burns the corresponding tokens and approves the transaction, and we manage the settlement with Mastercard rails later on.

```mermaid
sequenceDiagram
participant C as Cardholder
participant M as Merchant POS
participant AB as Acquiring Bank
participant MC as Mastercard Network
participant UR as UR
participant MN as Mantle Network

C->>M: 1. Taps UR Mastercard to pay $50
activate M
M->>AB: 2. Authorization Request
activate AB
AB->>MC: 3. Forward Request
activate MC
MC->>UR: 4. Route Request: "Authorize $50 for Card XYZ?"
activate UR

UR->>MN: 5. Query Balance of User's Wallet
activate MN
MN-->>UR: 6. Return Balance (e.g., 1000 USD24)
deactivate MN

UR-->>UR: 7. Verify Funds & Perform Fraud Checks

alt Sufficient Funds & Checks Pass
    UR->>MN: 8. Instruct: "BURN 50 USD24 from User's Wallet"
    activate MN
    MN-->>UR: 9. Burn Confirmed. New Balance: 950 USD24
    deactivate MN
    UR-->>MC: 10. Send Response: APPROVED
else Insufficient Funds or Fraud Flag
    UR-->>MC: 10. Send Response: DECLINED
end

deactivate UR
MC-->>AB: 11. Forward Response
deactivate MC
AB-->>M: 12. Send Final Response
deactivate AB
M-->>C: 13. Transaction Result
deactivate M
Note right of M: Displays "Approved" / "Declined" on screen
```


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