XFT Coin Systems

Blockchain Bank Accounts

XFT's stablecoin bank account system could prevent traditional bank runs through:

Transparent Reserves

  • Real-time blockchain verification of USDX supply
  • Public audit of USD custody balance
  • Smart contracts automatically reconcile USDX to USD ratio

Full Reserve Banking

  • Each USDX is backed 1:1 with USD
  • No fractional reserve lending
  • Bank can't create unbacked USDX
  • All deposits remain in custody, not reinvested

On-Chain Proofs

  • Merkle tree proofs show individual account balances
  • Automatic attestation of total reserves
  • Independent auditors verify custody accounts
  • Smart contract enforces minting limits based on reserves

Run-Proof System Benefits

  • Every USDX holder can redeem for USD anytime
  • Total redemptions can never exceed reserves
  • No duration mismatch between assets/liabilities
  • Transparency prevents loss of confidence

The tradeoff is reduced lending/yield capability compared to traditional fractional reserve banking, but offers perfect security of deposits.