USDtb

USDtb is a USD-pegged stablecoin issued by Pallas (BVI) Ltd., designed to serve as a blockchain-based digital dollar. Unlike fiat USD, it is a tokenised asset residing on multiple blockchain networks, enabling lower transaction costs and faster transfers. USDtb is engineered to be bankruptcy-remote from other business entities and operates through a legally structured framework supported by institutional-grade backing and smart contract infrastructure.

The token is fully backed, primarily by tokenised U.S. Treasury fund products—most notably, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). A secondary reserve in stablecoins is maintained to ensure immediate liquidity and smooth redemption operations.

USDtb aims to deliver a robust, decentralised alternative to traditional banking infrastructure while ensuring operational transparency and regulatory separation. It is built with a dual-entity system: Pallas oversees issuance and redemption, and Pallas Fund manages asset reserves. The governance framework includes independent directors, and custodial structures are designed to ensure legal separation and transparency of assets.

USDtb is designed for on-chain usage in scenarios where a blockchain-native representation of USD is needed. Supported uses include:

• Sending and receiving payments over supported blockchain networks
• Holding dollar-denominated value in tokenised form
• Acquiring or trading other assets using a USD-pegged token

Mint Users may redeem USDtb with Pallas or interact with the token via secondary markets such as centralised or decentralised exchanges.

The mint/redeem process is governed by smart contracts and is facilitated via EIP-712 and EIP-1271-based cryptographic signatures. Orders are verified by an RFQ (Request-for-Quote) server that applies last-look filtering to reject malicious submissions before finalising on-chain settlement.

Key components of the minting process include:

• Asset-Specific Mint Caps: Limits per asset and global thresholds ensure stability and avoid systemic risk.
• Delegate Signers: Whitelisted addresses may delegate signing to EOAs for mint/redeem instructions.
• Benefactors and Beneficiaries: Only pre-approved users may receive USDtb from minting operations.
• Custodian Controls: Mint outputs are restricted to verified institutional custodians.

Redemptions are available 24/7 for whitelisted Mint Users. During banking holidays or illiquid windows, redemption delays may occur, with stablecoin reserves used to bridge gaps. In some cases, USDtb may be redeemed directly for BUIDL tokens if the user's address is pre-approved.

In addition to direct mint/redemption pathways, users may also convert USDtb via secondary markets including centralised exchanges, decentralised exchanges, and OTC networks.

USDtb prioritises operational transparency:

• On-chain wallet transparency with verifiable token movements
• NAV (Net Asset Value) reporting of fund reserves via monthly disclosures
• Clear, auditable legal structure with no overlap in governance roles between issuing, custodial, and investment entities

Holders of USDtb do not receive governance rights, voting privileges, or income derived from the underlying reserve assets. Rights are limited to the redemption functionality for whitelisted Mint Users.