Stablecoin Minting

Minting occurs when a contract or authorized issuer increases token balances or total token supply according to the system's rules. In a fiat-backed arrangement, minting often follows receipt of funds through the primary issuance process. In crypto-collateralized systems, a smart contract can mint tokens after eligible collateral is locked. Bridge contracts can also mint representations of an existing stablecoin on another network, so technical minting does not always create a new base liability.

Separating technical minting from economic issuance prevents double counting when the same underlying stablecoin claim appears in represented form on another network.