Centralized Stablecoin Minting
Learn how to directly mint stablecoins through stablecoin issuers (such as Tether, Circle, Paxos, PayPal, etc.)
Overview
Centralized stablecoin minting is conducted through regulated institutions, directly exchanging fiat currency or assets for stablecoins, with high compliance and reliability. Major issuers include Tether (USDT), Circle (USDC), Paxos (USDP, USDG), PayPal (PYUSD), and others.
Key Features:
- ✅ High Compliance: Regulated, legally compliant
- ✅ High Transparency: Regular reserve reports
- ✅ Price Stability: Backed by fiat or assets
- ✅ Large Amount Support: Suitable for institutions and large users
- ⚠️ Requires KYC: Must complete identity verification
- ⚠️ High Threshold: Usually minimum amount requirements ($100,000-$1,000,000)
- ⚠️ Complex Process: Requires corporate verification and compliance procedures
Target Users:
- Institutional investors and large users
- Enterprises needing compliant stablecoins
- Users able to complete KYC/AML verification
Tether (USDT)
Features:
- World's largest stablecoin issuer
- Supports multiple blockchain networks (Ethereum, Tron, Solana, etc.)
- Supports both individual and corporate verification
- Requires KYC and AML verification
Minting Process:
Register Account
- Visit Tether Official Website
- Register account (supports individual and corporate)
- Choose verification type (Individual or Corporate)
Pay Verification Fee
- Pay $150 USD verification fee (in USDT)
- This fee is non-refundable but can be part of redemption
- Receive confirmation email to proceed
Complete KYC/AML
- Submit identity documents (individual) or business documents (corporate)
- Complete identity verification
- Wait for review (usually days to weeks)
Deposit Funds
- Deposit fiat currency (USD, EUR, etc.) via bank transfer
- Or deposit other assets (BTC, ETH, etc.)
- Confirm receipt (minimum $100,000 USD)
Mint USDT
- Select amount of USDT to mint
- Choose target blockchain network
- Confirm minting request
- Wait for processing (usually minutes to hours)
- USDT will be sent to specified address
Fee Structure:
- Minimum amount requirement: $100,000 USD (for purchase or redemption)
- Verification fee: $150 USD (paid in USDT, non-refundable)
- Purchase fee: 0.1%
- Redemption fee: $1,000 or 0.1% (whichever is greater)
Individual User Support:
- ✅ Individual verification supported: Tether supports both Individual and Corporate verification types
- ⚠️ High threshold: Minimum minting/redemption amount is $100,000 USD
- References: Tether Verification Guide | Tether Fees
Target Users:
- Institutional investors
- Exchanges and market makers
- Large individual users (minimum $100,000)
- Users needing direct USDT minting/redemption
Circle (USDC)
Features:
- Second largest stablecoin issuer
- Fully regulated with high transparency
- Supports multiple blockchain networks
- Provides API interface
Minting Process:
Register Account
- Visit Circle Official Website
- Register Circle Account
- Complete business or individual verification
Complete Compliance Verification
- Submit identity or business documents
- Complete KYC/AML verification
- Wait for review
Deposit Funds
- Deposit USD via bank transfer
- Or use Circle's API interface
- Confirm receipt
Mint USDC
- Initiate minting request through Circle platform or API
- Choose target blockchain network
- Confirm minting amount
- Wait for processing
- USDC will be sent to specified address
Fee Structure:
- Usually has minimum amount requirement (individual users typically $10,000 USD minimum, institutional users may be higher)
- Please consult Circle official for specific fees
Individual User Support:
- ⚠️ Limited support: Circle theoretically supports individual user registration, but:
- Usually has high minimum amount requirements ($10,000-$100,000 USD)
- Requires strict KYC/AML verification
- Process is relatively complex with longer review times
- Most individual users are better suited to purchase USDC through exchanges
Target Users:
- Institutional investors
- Financial institutions
- Enterprises needing compliant stablecoins
- Qualified individual users (large amounts, able to complete strict KYC)
Paxos (USDP, PYUSD, USDG)
Features:
- Regulated by New York State Department of Financial Services (NYDFS)
- Issues multiple stablecoins and tokenized assets
- Provides Pax Dollar (USDP), PayPal USD (PYUSD), and Global Dollar (USDG)
- Targets institutional users, supports zero-fee minting and redemption
- Unlimited liquidity, 1:1 redemption always available
Supported Stablecoins and Networks:
- USDP: Ethereum network
- PYUSD: Ethereum, Solana, Arbitrum, Stellar
- USDG: Ethereum, Solana, X Layer
Minting Process:
Register Institutional Account
- Visit Paxos Mint and Redeem
- Register institutional account
- Complete verification and compliance
Add Destination Wallet Address
- Navigate to Addresses in Paxos Dashboard
- Add external wallet address to receive stablecoins
- Select target blockchain network
Create Minting Instructions
- Go to Dashboard > Convert
- Select USD as source asset
- Choose method to send USD (SWIFT, ABA, DBS-ACT, CUBIX)
- Select stablecoin to mint (USDP, PYUSD, or USDG)
- Choose target network and wallet address
- Generate deposit instructions
Send USD to Paxos
- Use generated deposit instructions to send USD via bank transfer
- Paxos automatically executes minting upon receipt
- Stablecoins will be sent to specified wallet address
Fee Structure:
- ✅ Zero Fees: Institutional users can mint and redeem USDP, PYUSD, and USDG with zero fees
- ✅ Unlimited Liquidity: Enjoy the speed and flexibility of a primary marketplace
- ✅ 1:1 Redemption: Reserves are held 100% in US dollar deposits, US treasuries and cash equivalents
- References: Paxos Mint and Redeem | Paxos Mint Guide
Individual User Support:
- ⚠️ Limited support: Paxos primarily targets institutional users, but:
- May support qualified individual users in certain cases
- Usually has high minimum amount requirements
- Requires strict compliance and KYC procedures
- Individual users are usually better suited to purchase USDP or USDG through exchanges
Target Users:
- Institutional investors
- Financial institutions needing compliant stablecoins
- Investors wanting tokenized gold
- Qualified individual users (large amounts, able to complete strict compliance procedures)
PayPal (PYUSD)
Features:
- Issued by Paxos Trust Company NA, regulated by NYDFS
- PayPal's stablecoin designed for payments
- 1:1 pegged to USD, reserves held 100% in US dollar deposits, US treasuries and cash equivalents
- Supports multiple blockchain networks: Ethereum, Solana, Arbitrum, Stellar
- Targets individual and business users
Minting Methods:
Method 1: Through Paxos (Institutional Users)
Institutional users can mint PYUSD directly through Paxos with zero fees, unlimited liquidity, and 1:1 redemption:
- Register Paxos institutional account
- Create minting instructions in Paxos Dashboard
- Send USD via bank transfer
- PYUSD automatically sent to specified wallet address
Reference: Paxos Mint and Redeem
Method 2: Through PayPal Platform (Individual and Business Users)
Individual and business users can purchase PYUSD through PayPal platform:
Register PayPal Account
- Visit PayPal Official Website
- Register individual or business account
- Complete account verification
Complete Compliance Verification
- Submit identity or business documents
- Complete KYC/AML verification
- Wait for review
Deposit Funds
- Deposit USD through PayPal account
- Or connect bank account
- Confirm receipt
Purchase PYUSD
- Select purchase PYUSD on PayPal platform
- Enter purchase amount
- Confirm transaction
- PYUSD will appear in your PayPal account
Fee Structure:
- Institutional Users (through Paxos): ✅ Zero fees for minting and redemption
- Individual and Business Users (through PayPal):
- ✅ Zero fees: No fees to buy, sell, hold or transfer PYUSD to eligible US PayPal Balance accounts
- ✅ Transfer fees: No transfer fees for PYUSD on Solana network
- ⚠️ Conversion fees: Fees apply when converting between PYUSD and other cryptocurrencies
- ✅ Rewards: Earn rewards for holding PYUSD (approximately 4% annual, requires holding at least 1 PYUSD and opting in)
- Reference: PayPal PYUSD Page
User Support:
- ✅ Individual and business users supported: PayPal supports both individual and business users
- ⚠️ Requires KYC: Must complete identity verification
- ⚠️ Regional restrictions: May not be available in certain regions
- ⚠️ Minimum amount: May have minimum purchase amount requirement
Target Users:
- Institutional Users: Mint directly through Paxos, enjoy zero fees and unlimited liquidity
- Individual and Business Users: Purchase through PayPal platform, use within PayPal ecosystem
- PayPal users
- Users needing simple and easy-to-use stablecoins
Preparation
1. Choose the Right Issuer
Considerations:
- Compliance needs: Whether regulated stablecoins are needed
- Amount size: Whether minimum amount requirements are met
- KYC capability: Whether compliance procedures can be completed
- Use case: Institutional or individual use
- Blockchain networks: Which blockchain networks need to be supported
2. Prepare Verification Materials
Individual users need:
- Identity documents (passport, ID card, etc.)
- Address proof
- Bank account information
- Source of funds statement
Corporate users need:
- Corporate registration documents
- Legal representative identity proof
- Corporate bank account information
- Business description documents
3. Prepare Funds
- Ensure sufficient funds to meet minimum amount requirements
- Prepare to pay verification fees (e.g., Tether's $150 USD)
- Reserve processing time (days to weeks)
Risk Management
1. Compliance Risk
Risk Types:
- KYC/AML review failure
- Source of funds review
- Regulatory policy changes
Mitigation Strategies:
- Prepare complete verification materials
- Ensure legal source of funds
- Monitor regulatory developments
2. Centralization Risk
Risk Types:
- Issuer operational risk
- Reserve asset risk
- Regulatory freeze risk
Mitigation Strategies:
- Choose reputable issuers
- Monitor reserve reports
- Diversify holdings across multiple stablecoins
3. Time Cost
Risk Types:
- Long verification review time
- Uncertain processing time
- Unable to meet urgent needs
Mitigation Strategies:
- Plan ahead, reserve sufficient time
- Prepare backup plans
- Consider purchasing through exchanges
Best Practices
Plan Ahead
- Reserve sufficient verification and processing time
- Prepare complete verification materials
- Understand minimum amount requirements
Choose Reliable Issuers
- Choose reputable issuers
- Monitor reserve reports and transparency
- Understand issuer's regulatory status
Diversify Risk
- Don't put all funds into a single issuer
- Consider holding multiple stablecoins
- Maintain liquidity reserves
FAQ
Q: Do I need KYC to mint stablecoins?
A: Yes, centralized stablecoins (USDT, USDC, USDP) must complete KYC/AML verification.
Q: Can individual users mint stablecoins through Tether, Circle, or Paxos?
A: Details are as follows:
Tether (USDT): ✅ Individual verification supported. Tether supports both Individual and Corporate verification types, but the threshold is very high:
- Minimum minting/redemption amount: $100,000 USD
- Verification fee: $150 USD (non-refundable)
- Purchase fee: 0.1%
- Redemption fee: $1,000 or 0.1% (whichever is greater)
- Most individual users are better suited to purchase USDT through exchanges
Circle (USDC): ⚠️ Limited support. Circle theoretically supports individual user registration, but:
- Usually has high minimum amount requirements ($10,000-$100,000 USD)
- Requires strict KYC/AML verification
- Process is complex with longer review times
- Most individual users are better suited to purchase USDC through exchanges
Paxos (USDP, USDG): ⚠️ Limited support. Primarily targets institutional users, but may support qualified individual users in certain cases, usually with high thresholds.
Recommendations for Individual Users:
- Purchase stablecoins through exchanges (simplest and fastest)
- Use decentralized protocols for minting (such as MakerDAO, Ethena)
- Obtain stablecoins through other on-ramp/off-ramp channels
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