The Technicals

At the core, the SBF Token is an ERC-20-compliant synthetic representation of a real-world asset portfolio — typically sovereign bonds, T-bills, or regulated equities — held off-chain by a licensed custodian. The protocol abstracts custody, proof-of-assets, and regulatory constraints into a trust-minimized, on-chain architecture, enabling 24/7 access to yield-backed capital primitives.

• Mint & Redeem Flow

• Minting Users (or authorized partners) deposit fiat or stablecoins (e.g. USDC) into a whitelisted mint module, triggering a backend settlement layer to purchase underlying securities via a broker-dealer or fund structure. Once confirmed, smart contracts mint SBF tokens 1:1 and assign them to the user's wallet. Example: Sarah has $1,000 USDC and wants a stable yield. She heads to the SBF app, connects her wallet, and deposits her USDC.

What happens:

• The protocol uses that $1,000 to buy short-term U.S. Treasury bills through a licensed broker.

• These bonds are held by a regulated custodian in a trust.

• An on-chain oracle confirms the purchase and updates the reserve.

• Smart contracts mint 1,000 SBFUSD to Sarah’s wallet — fully backed, fully auditable.

Result: Sarah now holds a yield-bearing token, backed by real-world bonds, but spendable and usable like any other crypto token.

• Redemption Users burn SBF tokens via the protocol. This triggers the off-chain unwind of the corresponding RWA position. Fiat equivalent is returned (typically in USDC) after settlement. Settlement windows may be delayed to match T+1/T+2 TradFi constraints. Example: Alicia decides to cash out her SBF-EUROSTOXX tokens. What happens:

• She sends her tokens back to the protocol’s redemption smart contract.

• The tokens are burned.

• The protocol sells the underlying assets (or pulls from a liquidity buffer).

• Alicia receives USDC or another stablecoin to her wallet.

Result: Redemption is smooth, transparent, and handled entirely via smart contracts — no banks, no middlemen.

• Proof-of-Reserve & Attestation

Off-chain custodians provide regular NAV attestations (daily or real-time), fed into the protocol via oracle networks (e.g. Chainlink, Pyth). Sam, a DAO treasurer, wants to know if the SBF-EQUITY tokens they bought are still fairly priced.

What happens behind the scenes:

• A price oracle (e.g., Chainlink or Pyth) pulls the latest price of the underlying equity (e.g., Tesla stock).

• A reserve oracle checks the latest custodian statement and pushes reserve amounts on-chain.

• The smart contract uses this to adjust NAV and ensure 1:1 backing remains intact.

Sam sees:

• Token supply: 20,000 SBF-TSLA

• Shares held: 20,000 Tesla shares

• Last synced: 7 minutes ago

• Everything matches — no risk of over-issuance

• Why It’s Powerful

With Proof-of-Reserve + Attestation:

• You don’t have to trust the issuer — you can verify it yourself.

• Transparency is live and automated — not quarterly and hidden behind a paywall.

• Risk is minimized by programmatic enforcement, not just promises.