Tokenization Payment Rails

Introduction

Our Tokenization Payment Rails product is seamless and secure, enabling tokenization platforms (ie, tokenized money market fund issuers), to accept stablecoin investments at scale. Our product facilitates the end-to-end flow of stablecoin funding: from generating investor-specific deposit addresses to converting stablecoins into fiat and settling funds directly to the issuer’s account. Designed for institutional-grade volumes, our platform supports trades in the hundreds of millions, while maintaining full compliance through on-chain transaction monitoring and robust liquidity management.

By combining the speed of blockchain with the reliability of the world’s leading bank transfer networks, our Tokenization Payment Rails seamlessly bridge digital assets and traditional finance - enabling fast, compliant, and scalable investment flows.

Definitions

Term	Definition
Tokenized Asset	The asset that is tokenized (ie, tokenized money market Funds such as BUIDL or BENJI)
On ramp	Conversion of fiat to stablecoins. Contextual to an Investor looking to move out of their tokenized asset position into stablecoins Tokenized asset → stablecoins → fiat
Off ramp	The reverse of On ramp, where the Investor is going from stablecoins into fiat, then ultimately into a tokenized asset position Fiat → stablecoins → tokenized asset
Platform	The company that's in contract with Zero Hash and directly interacts with Zero Hash's API's or SDK's This is typically the Issuer of the tokenized asset
Investor	The non-natural or natural person who is making the investment and the owner of the funds for the stablecoins, fiat and tokenized asset

High Level Flow

Onboard Investor
Query Investor(s)
Fund Float Account
Off ramp - Stablecoin Deposit
Off ramp - Get Quote
Off ramp - Stablecoin to Fiat Conversion
Off ramp - Settlement Timing
Off ramp - Fiat Withdraw
Off ramp - Query Movements
On ramp - Fiat Deposit
On ramp - Get Quote
On ramp - Fiat to Stablecoin Conversion
On ramp - Settlement Timing
On ramp - Stablecoin Withdraw

Initial Setup

The Platform will need to onboard its business to the Zero Hash platform. They then need to add additional users, create API keys, and whitelist IP addresses. See instructions here.

1. Onboard Investor

Non-Natural Person (ie, a Business)

If the Investor is a business, you'll submit them via the POST /participants/entity/new endpoint:

{
    "platform_code": "PLAT01",
    "entity_name": "Tokenized Fund Investor XYZ",
    "legal_name": "Tokenized Fund Investor XYZ Inc.",
    "contact_number": "15553765432",
    "website": "www.tokenizedfundinvestor.com",
    "date_established": "2018-01-15",
    "entity_type": "llc",
    "address_one": "1 Main St.",
    "address_two": "Suite 1000",
    "city": "Chicago",
    "postal_code": "12345",
    "jurisdiction_code": "US-IL",
    "tax_id": "883987654",
    "id_issuing_authority": "United States",
    "risk_rating": "low",
    "risk_vendor": "passbase",
    "sanction_screening": "pass",
    "sanction_screening_timestamp":1677252628000,
    "metadata":{},
    "signed_timestamp":1677252629000,
    "submitter_email": "[email protected]",
    "submitter_first_name": "Josh" 
    "submitter_last_name": "Doe"
    "submitter_title": "Senior Legal Council"
    "control_persons":[
      {
        "name": "Joe Doe",
        "email": "[email protected]",
        "address_one": "1 South St.",
        "address_two": "Suite 2000",
        "city": "Chicago",
        "postal_code": "12345",
        "jurisdiction_code": "US-IL",
        "date_of_birth": "1980-01-30",  
        "citizenship_code": "US", 
        "tax_id": "123456789",
        "id_number_type": "us_passport",
        "id_number": "332211200",
        "kyc": "pass",
        "kyc_timestamp": 1630623005000,
        "sanction_screening":"pass",
        "sanction_screening_timestamp":1677252628000,
        "control_person": 1
      }
    ],
    "beneficial_owners":[
      {
        "name": "Jane Doe Jr",
        "beneficial_owner":1,
        "email": "[email protected]",
        "address_one": "1 North St.",
        "address_two": "Suite 3000",
        "city": "Chicago",
        "postal_code": "12345",
        "jurisdiction_code": "US-IL",
        "date_of_birth": "1980-01-30",
        "citizenship_code": "US", 
        "tax_id": "012345578",
        "id_number_type": "us_drivers_license",
        "id_number": "P11122243333",
        "kyc": "pass",
        "kyc_timestamp": 1630623005000,
        "sanction_screening": "pass",
        "sanction_screening_timestamp":1677252628000
      }
    ]
}

You’ll receive a participant_code in the response - this is the Investor participant code that uniquely identifies the entity indefinitely. We’ll use INVST1 as the participant_code throughout the examples.

See response for expected shape.

You must submit at least 1 beneficial_owners and 1 control_persons. If these persons do not have an SSN, the Platform must submit a document via POST /participants/entity/documents.

Natural Person (ie, a Human)

If the Investor is a human, you'll submit them via the POST /participants/customers/new endpoint:

{
    "first_name": "John",
    "last_name": "Smith",
    "email": "[email protected]",
    "phone_number": "+12345834789",
    "date_of_birth": "1985-09-02",
    "ip_address": "999.168.252.199",
    "address_one": "1 Main St.",
    "address_two": "Suite 1000",
    "city": "Chicago",
    "zip": "12345",
    "jurisdiction_code": "US-IL",
    "partial": true,
    "sanction_screening": "pass",
    "sanction_screening_timestamp": 1603378501282,
    "signed_agreements": [{
        "type": "user_agreement",
        "region": "us",
        "signed_timestamp": 1603378501286
    }],
}

Same thing applies here - you'll receive a participant_code in the response - this is the Investor participant code that uniquely identifies the individual indefinitely. We’ll use INVST2 as the participant_code throughout the examples.

2. Query Investor

You can query Investor information details such as the participant_code via the GET /participants endpoint

3. Fund Float Account

In order to fund your On Ramp transactions, you'll need a float. Get the destination bank account details from your Zero Hash rep. Here are the float account details:

Participant_code: 00SCXM
Account_group: PLAT01
Account_label: general
Account_type: available
Asset: USD

ℹ️
In Cert, your platform will be pre-funded with Float account funds.

For this account to be credited automatically upon receipt into our bank account, you must tag the wire memo in this format: [Platform participant code] - FLOAT (ie, PLAT01 -FLOAT)

4. Off ramp - Stablecoin Deposit

Generate a deposit address via the POST /deposits/digital_asset_addresses endpoint:

{
    "participant_code": "INVST1",
    "asset": "USDC.SOL"
}

Zero Hash will respond with an address is the perpetually associated with the Investor and will not change:

{
  "message": {
    "created_at": 1590663417000,
    "address": "4zMMC9srt5Ri5X14GAgXhaHii3GnPAEERYPJgZJDncDU",
    "participant_code": "INVST1",
    "asset": "USDC.SOL"
  }
}

You should display this address on your front end so that the Investor knows where to send funds.

5. Off ramp - Get Quote

When presenting the deposit instructions to the Investor, you'll want to also show the conversion details. For example, if you deposit X USDC it will lead to Y USD.

Typically, Issuers will charge a spread for this conversion (ie, 10 basis points). If you charge a static spread for each tokenized asset, simple enough - Zero Hash will configure a static spread that will be applied to all quote requests automatically. If each tokenized assets are not priced identically, you can use our Custom Spread feature, allowing you to define the spread on a per order basis.

Start by getting a quote via the POST /liquidity/rfq endpoint (using a Custom Spread):

{
    "participant_code": "INVST1",
    "side": "sell",
    "underlying": "USDC.SOL",
    "quoted_currency": "USD",
    "quantity":"100000", // how much USDC the investor wishes to deposit
    "spread":"5", // 5 basis points spread       
}

Zero Hash will respond:

{
  "request_id": "ce819fe8-b1d7-43bb-961c-e09ede0988d3",
  "participant_code": "PLAT01", // platform participant code
  "quoted_currency": "USD",
  "side": "sell",
  "quantity": "100000",
  "price": ".999", // 10 bps applied in total between the spread and issuer fee
  "quote_id": "32ad471b-824e-4f04-94ff-45c4439b4fe9",
  "expire_ts": 1568311649602,
  "account_group": "PLAT01",
  "account_label": "general",
  "obo_participant": {
    "participant_code": "INVST1",
    "account_group": "PLAT01",
    "account_label": "general"
  },
  "total_notional": "1000000",
  "underlying": "USDC.SOL",
  "asset_cost_notional": "99900.00",
  "spread_notional": "50",
  "spread_bps": "5",
  "settlement_type": "STANDARD",
  "issuer_fee_payor_type": "CUSTOMER",
  "issuer_fee_rate": "5",
  "issuer_fee_amount": "50"
}

NOTE: Depending on the asset and asset side (buy/sell) for the transaction, Zero Hash will pass along the fee that the stablecoin issuer charges Zero Hash (see issuer_fee fields above and issuer fee schedule here)

At this point, the Investor has all information required to make a deposit.

6. Off ramp - Stablecoin to Fiat Conversion

Once the Investor has deposited, you have the option of creating a user experience that does 1 of two things:

Automatically sells the USDC for USD
Present the Investor once again with the quote details

Option 2 can only be employed for static 1-1 stablecoins since the rates will not change. For all other assets, you must present the quote to the Investor so that the details of the transactions are completely disclosed

Regardless, you'll initiate another quote by calling the POST /liquidity/rfq endpoint. From the response, grab the quote_id and then plug it into the POST /liquidity/execute endpoint:

{ 
   "quote_id": "89ad471b-824e-4f04-94ff-45c4439b4Ru9"
}

Response:

{
    "request_id": "006c3b73-f06b-4002-8a4d-511cb0528443",
    "quote": {
        "request_id": "f2a841c1-4ef4-46e2-a0d6-4dac637df54b",
        "participant_code": "PLAT01",
        "quoted_currency": "USD",
        "side": "sell",
        "quantity": "100000",
        "price": ".999",
        "quote_id": "89ad471b-824e-4f04-94ff-45c4439b4Ru9",
        "expire_ts": 1733239888234,
        "account_group": "PLAT01",
        "account_label": "general",
        "obo_participant": {
            "participant_code": "INVST1",
            "account_group": "PLAT01",
            "account_label": "general"
        },
        "total_notional": "100000",
        "settlement_type": null,
        "issuer_fee_rate": null,
        "issuer_fee_amount": null,
        "issuer_fee_payor_type": null,
        "underlying": "USDC.SOL",
        "asset_cost_notional": "99900.00",
        "spread_notional": "50",
        "spread_bps": "5",
        "transaction_timestamp": 173323988
        "settlement_type": "STANDARD",
        "issuer_fee_payor_type": "CUSTOMER",
        "issuer_fee_rate": "5",
        "issuer_fee_amount": "50"
    },
    "trade_id": "2531e08e-b40b-40a7-b555-55261e518310",
    "status": "Completed",
    "trade_ids_list": [
        "2531e08e-b40b-40a7-b555-55261e518310"
    ]
}

7. Off ramp - Settlement Timing

For any conversions equal to or below $500,000, the trades will settle instantly. For conversion above that threshold, settlements will no more than 2 hours to settle

8. Off ramp - Fiat Withdraw

When the trade is settled, you can initiate a withdraw of the USD to your preferred bank account.

The first step is is to whitelist your bank account via the Client Portal. Cert URL / Prod URL.

🚧
Note that wires cutoffs range from 4 - 6 pm ET, depending on the bank the Zero Hash uses to settle with you. If your company has an account that allows for inter-bank transfers, fiat settlements can be made 24/7/365.

9. Off ramp - Query Movements

You can query the the trade details via the GET /trades/{trade_id} endpoint. You can also query deposit details via the GET /deposits endpoint.

📘
This marks the end of the journey for allowing an Investor to use stablecoins as the payment method to enter into a tokenized asset position

10. On ramp - Fiat Deposit

To allow your Investors to exist their tokenized asset position and back into stablecoins, you first need to facilitate a USD withdraw from the Investor's account within your ecosystem, into their account at Zero Hash. You will send the USD to the bank account details provided to you, and specify a wire memo equal to the Investor's Zero Hash participant_code. This will automatically credit their USD balance at Zero Hash.

For this account to be credited automatically upon receipt into our bank account, you must tag the wire memo in this format: [Platform participant code] (ie, INVST1).

11. On ramp - Get Quote

Similar to step 5. Off ramp - Get Quote, you'll get a quote via the POST /liquidity/rfq endpoint. Example:

{
    "participant_code": "INVST1",
    "side": "buy",
    "underlying": "USDC.SOL",
    "quoted_currency": "USD",
    "total":"100000", // how much USD the investor wishes to deposit
    "spread":"5", // 5 basis points spread       
}

Zero Hash will respond:

{
  "request_id": "ce819fe8-b1d7-43bb-961c-e09ede0988d3",
  "participant_code": "PLAT01", // platform participant code
  "quoted_currency": "USD",
  "side": "buy",
  "quantity": "100000",
  "price": ".9995", // 5 bps applied
  "quote_id": "76ad471b-824e-4f04-94ff-45c4439b4re1",
  "expire_ts": 1568311649602,
  "account_group": "PLAT01",
  "account_label": "general",
  "obo_participant": {
    "participant_code": "INVST1",
    "account_group": "PLAT01",
    "account_label": "general"
  },
  "total_notional": "1000000",
  "underlying": "USDC.SOL",
  "asset_cost_notional": "99950.00",
  "spread_notional": "50",
  "spread_bps": "5",
  "settlement_type": "STANDARD",
  "issuer_fee_payor_type": "CUSTOMER",
  "issuer_fee_rate": "",
  "issuer_fee_amount": ""
}

12. On ramp - Fiat to Stablecoin Conversion

Once you'd like to make the conversion, initiate a quote execution using the same endpoint as step 6: POST /liquidity/execute. Example request:

{ 
   "quote_id": "76ad471b-824e-4f04-94ff-45c4439b4re1"
}

Example Response:

{
    "request_id": "006c3b73-f06b-4002-8a4d-511cb0528443",
    "quote": {
        "request_id": "f2a841c1-4ef4-46e2-a0d6-4dac637df54b",
        "participant_code": "PLAT01",
        "quoted_currency": "USD",
        "side": "sell",
        "quantity": "100000",
        "price": ".9995",
        "quote_id": "76ad471b-824e-4f04-94ff-45c4439b4re1",
        "expire_ts": 1733239888234,
        "account_group": "PLAT01",
        "account_label": "general",
        "obo_participant": {
            "participant_code": "INVST1",
            "account_group": "PLAT01",
            "account_label": "general"
        },
        "total_notional": "100000",
        "settlement_type": null,
        "issuer_fee_rate": null,
        "issuer_fee_amount": null,
        "issuer_fee_payor_type": null,
        "underlying": "USDC.SOL",
        "asset_cost_notional": "99950.00",
        "spread_notional": "50",
        "spread_bps": "5",
        "transaction_timestamp": 173323988
        "settlement_type": "STANDARD",
        "issuer_fee_payor_type": "CUSTOMER",
        "issuer_fee_rate": "",
        "issuer_fee_amount": ""
    },
    "trade_id": "3231e08e-b40b-40a7-b555-55261e518317",
    "status": "Completed",
    "trade_ids_list": [
        "2531e08e-b40b-40a7-b555-55261e518310"
    ]
}

13. On ramp - Settlement Timing

Off ramp settlement timing is identical to On ramp as it relates to trade settlement. Reposting:

For any conversions equal to or below $500,000, the trades will settle instantly. For conversion above that threshold, settlements will no more than 2 hours to settle.

14. On ramp - Stablecoin Withdraw

When you're ready to send the stablecoin out to the investor wallet, you'll use the POST /withdrawals/requests endpoint. Example request:

{ 
   "address":"3zMMC9srt5Ri5X14GAgXhaHii3GnPAEERYPJgZJDncDR", // Investor's address 
   "participant_code":"INVST1",
   "amount":"99950",
   "asset":"USDC.SOL",
   "account_group":"PLAT01",
}

Network fee options - you can choose to pass the network fee associated with the withdraw onto the Investor or incur the fee yourselves. Talk to your Zero Hash rep so that they can make the proper configuration.

Tokenization Payment Rails

Introduction

Definitions

High Level Flow

Initial Setup

1. Onboard Investor

Non-Natural Person (ie, a Business)

Natural Person (ie, a Human)

2. Query Investor

3. Fund Float Account

ℹ️
In Cert, your platform will be pre-funded with Float account funds.

4. Off ramp - Stablecoin Deposit

5. Off ramp - Get Quote

6. Off ramp - Stablecoin to Fiat Conversion

7. Off ramp - Settlement Timing

8. Off ramp - Fiat Withdraw

🚧
Note that wires cutoffs range from 4 - 6 pm ET, depending on the bank the Zero Hash uses to settle with you. If your company has an account that allows for inter-bank transfers, fiat settlements can be made 24/7/365.

9. Off ramp - Query Movements

📘
This marks the end of the journey for allowing an Investor to use stablecoins as the payment method to enter into a tokenized asset position

10. On ramp - Fiat Deposit

11. On ramp - Get Quote

12. On ramp - Fiat to Stablecoin Conversion

13. On ramp - Settlement Timing

14. On ramp - Stablecoin Withdraw

Introduction

Definitions

High Level Flow

Initial Setup

1. Onboard Investor

Non-Natural Person (ie, a Business)

Natural Person (ie, a Human)

2. Query Investor

3. Fund Float Account

ℹ️In Cert, your platform will be pre-funded with Float account funds.

4. Off ramp - Stablecoin Deposit

5. Off ramp - Get Quote

6. Off ramp - Stablecoin to Fiat Conversion

7. Off ramp - Settlement Timing

8. Off ramp - Fiat Withdraw

🚧Note that wires cutoffs range from 4 - 6 pm ET, depending on the bank the Zero Hash uses to settle with you. If your company has an account that allows for inter-bank transfers, fiat settlements can be made 24/7/365.

9. Off ramp - Query Movements

📘This marks the end of the journey for allowing an Investor to use stablecoins as the payment method to enter into a tokenized asset position

10. On ramp - Fiat Deposit

11. On ramp - Get Quote

12. On ramp - Fiat to Stablecoin Conversion

13. On ramp - Settlement Timing

14. On ramp - Stablecoin Withdraw

ℹ️
In Cert, your platform will be pre-funded with Float account funds.

🚧
Note that wires cutoffs range from 4 - 6 pm ET, depending on the bank the Zero Hash uses to settle with you. If your company has an account that allows for inter-bank transfers, fiat settlements can be made 24/7/365.

📘
This marks the end of the journey for allowing an Investor to use stablecoins as the payment method to enter into a tokenized asset position