CUSD Stablecoin Overview

CUSD ($CUSD) - Privacy-First Stablecoin

CUSD redefines what a stablecoin can be: private, programmable, and safe for real-world use.

Executive Summary

Send offers CUSD ($CUSD), a USD-pegged stablecoin, on Canton Network via Brale for privacy-first transactions across institutional and retail use cases. CUSD enables confidential transactions by default while maintaining full regulatory compliance and 1:1 USD backing through Frax $frxUSD.

The protocol generates sustainable value through treasury yield management (~4% annually) and additional Frax incentives, with 100% directed to $CC buybacks after Brale's management fee. Users earn $CC rewards from Canton Network activity, creating a flywheel where $CUSD adoption drives engagement across Canton's ecosystem of products.

Key Value Propositions

• Privacy-first, safety-forward transactions with selective compliance disclosure
• Direct $CC value accrual through automated buybacks (100% of yield)
• '$CC rewards' integration across Canton Network applications
• Enterprise-grade self-custody and regulatory framework

Partnership Structure

Send Distribution: As the product owner of CUSD, Send will make CUSD the primary stablecoin to use on its app and own its distribution throughout Canton.

Brale Issuance & Compliance: Brale provides regulated native issuance and monitoring.

Frax Reserve Backing: CUSD backed 100% with Frax USD (frxUSD)—a GENIUS-aligned, fully-backed reserve with instant liquidity. frxUSD reserves are held 1:1 against USD assets through institutional-grade, tokenized money-market funds from BlackRock, Fidelity, WisdomTree, Superstate.

Reward Economics: Baseline reserve economics from short-duration U.S. Treasuries are passed through in full to fund $CC buybacks. Additional rewards provided by Frax will be provided to further fuel CUSD growth.

Canton Alignment: Capital-efficient reserves + rewards make CUSD the most Canton-aligned stablecoin to hold across the network's apps and institutions.

Targets: $1B TVL in Year 1 via privacy-preserving institutional onboarding, deep liquidity, and aligned economics.

Integrations and Features

CUSD provides privacy-first infrastructure across Canton Network applications, pairing programmable mint/redemption via API with built-in safety controls for immediate on-chain confidential transactions.

Core Privacy Features

• Confidential Transfers: Transaction amounts and counterparties remain private
• Selective Disclosure: Compliance reporting without compromising user privacy
• API Access: Programmatic integrations maintaining privacy guarantees

Ecosystem Integrations

• Send: Private asset management and confidential DeFi interactions
• Safe: Multi-signature treasury management for enterprises
• Pool Party: Confidential automated market maker enabling low-slippage swaps between $CUSD and other Canton-native assets

Rewards & Economics

All reserve economics attributable to CUSD accrue to the CUSD Treasury and are used to buy back $CC and fuel ecosystem growth. Brale takes a 10% management fee and Frax takes no cut.

Baseline pass-through: Short-duration U.S. Treasury reserve economics, via frxUSD, route on-chain to support $CC buybacks.

Adoption-aligned incentives: Frax's capital-efficient infrastructure enables additional, programmatic incentives that may be activated as CUSD adoption scales on Canton.

Canton alignment: The combined Send×Brale×Frax structure concentrates value back into the Canton ecosystem, reinforcing CUSD as the default stable asset to hold.

Risk Management

Market

• Peg Stability: Deep CUSD liquidity, institutional MMs, programmatic mint/redeem
• Adoption: $CC incentives + seamless UX across Send and Canton apps
• Yield Competition: Privacy premium and institutional features justify adoption

Regulatory

• Privacy Compliance: Selective disclosure satisfies oversight
• Jurisdiction Changes: Multi-jurisdiction licensing for redundancy

Technical

• Canton Scaling: Gradual TVL growth, staged integrations, continuous monitoring

Outcome: CUSD becomes the most Canton-aligned stablecoin with best-in-class compliance and rewards—powered by Send + Frax + Brale and integrated across Canton Network.