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Confidential · Mainnet product guide draft · English v1.0 · 7 October 2026 Docs Home · Vault Liquidity Architecture ArcoUSD connects dollar stablecoins on GIWA to arcoUSD, a payment and liquidity unit used across ARCO. Users deposit supported stablecoins on a 1:1 basis to receive arcoUSD, which they can use to participate in Savings or buy Funds products. arcoUSD is a dollar-denominated exchange unit; it serves a different purpose from sarcoUSD, which provides exposure to Savings performance.

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Key terms

Before transacting, review the terms above and the steps in Deposits and Redemptions. Terms and Risks covers the rights and eligibility conditions to check, while NAV and Returns covers pricing and costs.

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Deposits and 1:1 redemption

Supported assets are primarily USDC, USDT and RLUSD. Under normal exchange conditions, depositing one dollar’s worth of a supported stablecoin gives 1 arcoUSD. Direct redemption is based on burning 1 arcoUSD to pay out one dollar’s worth of a supported stablecoin. In an OTC token acquisition withdrawal, arcoUSD is transferred to the partner; that transfer alone does not reduce token supply. The 1:1 basis applies under normal dollar exchange conditions for supported assets. Product specifications define each asset’s official token address and issuance form, units, deposit and payout support, and treatment of price deviations. Before a transaction, users check the withdrawal asset, applicable costs and payout route.

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Core reserve composition

ArcoUSD is designed to maintain an ample reserve buffer so that supported stablecoins can be swapped on an ongoing basis. Stablecoin reserves and MMF allocations are managed with regard to swap and withdrawal demand, reserved payouts and external settlement schedules. Intended MMF reserve components include uMINT, BENJI-linked products and RRDY, introduced in the Funds product catalog. Reserve operating thresholds account for swap and withdrawal demand, reserved payouts, and MMF recovery and settlement cycles. MMF NAV and stablecoin balances available for immediate payout are managed separately. Funds are added to the reserve only after recovery and settlement have produced an actual receipt. Optional strategy extensions are separate from the core MMF composition. Assets and collateral forms, protocols and markets, limits, and recovery and loss conditions are defined before an extension is included in the product. References to BTC, ETH, XRP and Morpho follow these extension conditions; they do not mean that a particular asset or market is already supported.

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Reserve replenishment and MMF rebalancing

  1. Determine the available reserve for each stablecoin after accounting for reserved payouts and existing settlement obligations.
  2. If the available reserve falls below its operating threshold, calculate the required top-up and begin rebalancing through MMF redemption and recovery.
  3. Aim to replenish the reserve with recovered and settled stablecoins within T+0 to T+2 days, where T is the date of the MMF recovery request.
  4. After replenishment, reconcile available balances against incomplete payouts and settlement obligations, then manage subsequent allocations according to swap and withdrawal demand.
The applicable MMF’s operating specifications govern business days, request cutoffs, payout assets, and recovery and settlement conditions. While MMF recovery is in progress, the reserve buffer and executable OTC liquidity support payouts. Quotes, limits, fees and actual payout status are communicated for each route.

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Use of returns

Returns generated by reserve management are handled according to the product’s cost, reserve and allocation policies. Ordinary arcoUSD wallet balances do not automatically increase with investment performance. Users who want exposure to returns deposit arcoUSD into Savings and hold sarcoUSD. Reserve returns, returns reflected in Savings, and costs or allocations attributable to the platform are connected according to their respective policies. The same investment return is not counted twice in reserve assets and Savings performance.

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Liquidity and withdrawals

Standard Redemption pays out according to the reserve recovery and settlement schedule. Instant Redemption uses the internal stablecoin reserve or executable liquidity from the OTC Network, with redemption fees. Users distinguish the gross redemption amount on the 1:1 basis from the actual amount received after fees. Quotes reflect the available balance and support conditions for the selected withdrawal asset. The reserve buffer supports ongoing swaps and withdrawals; MMF rebalancing replenishes available balances that fall below operating thresholds. Each withdrawal route accounts for reserved payouts and ongoing recovery and settlement.

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Funds settlement and the treasury

arcoUSD used to buy Funds products is received and burned. USDC, USDT or RLUSD is withdrawn from the treasury to settle the RWA purchase according to the asset’s payment requirements. The quantity burned is linked to the reserve assets payable and the Funds purchase and receipt records. Burning arcoUSD alone does not complete the external RWA purchase or receipt. User claims and the treatment of funds for incomplete settlement are recorded, and total reserves are reconciled against issued balances and outstanding payout obligations.

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Conditions to check

Product specifications provide supported assets and networks, eligibility, fees, reserve composition and valuation, Standard and Instant Redemption conditions, and return allocation policies. The 1:1 exchange basis does not replace consideration of reserve market, credit or liquidity risks, or provide a legal guarantee.

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Frequently asked questions

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Do I earn returns simply by holding arcoUSD?

Ordinary arcoUSD is a payment and redemption token. To participate in a return strategy, deposit arcoUSD into Savings and hold sarcoUSD.

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Can I receive less even though redemption is 1:1?

The gross redemption amount under normal exchange conditions differs from the amount received after costs. Check the final quote, including Instant Redemption fees and applicable transaction costs.

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Does the MMF T+0 to T+2 window set the deadline for every withdrawal?

T+0 to T+2 is the reserve replenishment target measured from the MMF recovery request date, T, when reserves fall below their operating threshold. It is not a customer payout deadline. The selected product and route govern Standard payout schedules and Instant execution and payout conditions.

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Can I always withdraw immediately in my preferred stablecoin?

A withdrawal quote is provided after checking the supported payout assets and the available balance of the selected asset. If internal Instant liquidity or an OTC quote is unavailable, check the offered Standard route and payout schedule. For an already submitted request, check its status in the transaction history first.