Burn
Burning is the opposite of minting: tokens are permanently destroyed (removed from circulation) when a user redeems them for the underlying fiat. This keeps token supply matched to reserves at all times.
Veja também: mint · redemption
Referência
Glossário Fintech
Definições simples dos termos fintech, de stablecoins e de criptomoedas usados em todo o REDFi. Passe o cursor sobre qualquer termo no nosso blog para ver a definição — ou navegue pela lista completa aqui.
Stablecoins
Custodial wallet
A custodial wallet is one where the platform safeguards the cryptographic keys on the user's behalf. The user accesses funds via the platform's interface. Pros: easier UX, no key-loss risk. Cons: trust in the custodian. REDFi uses custodial wallets via Bridge for everyday users; advanced users can connect external (non-custodial) wallets.
Veja também: custodian
Custodian
A custodian is a regulated company that holds and secures assets on behalf of others. In the stablecoin world, custodians are responsible for safeguarding the underlying reserves and the cryptographic keys. REDFi uses Bridge as its custodian.
Veja também: custodial wallet
Liquidation address
A liquidation address is a special deposit address tied to a bank account. Any stablecoins or crypto sent to it are automatically converted to fiat and deposited into the linked bank account. REDFi generates one per user; senders see a normal blockchain address but the recipient gets USD in their bank.
Veja também: off ramp · custodial wallet
Mint
Minting is the process of creating new stablecoin tokens. When a user deposits fiat, the issuer mints an equivalent number of tokens. Each minted token is backed by the deposited reserves.
Veja também: burn · redemption
Off-ramp
An off-ramp is the reverse of an on-ramp: converting digital assets back into fiat money sent to a traditional bank account. REDFi supports off-ramps to 80+ countries via local payment rails (ACH, SEPA, PIX, SPEI, etc.).
Veja também: on ramp · liquidation address
On-ramp
An on-ramp is the path that brings traditional fiat money (USD, EUR, etc.) into the digital-asset economy. With REDFi, you deposit fiat from a bank account; it's automatically converted into USDB (or another stablecoin) in your wallet. On-ramps are the entry point to the stablecoin world.
Veja também: off ramp · liquidation address
Redemption
Redemption is the formal process of returning stablecoin tokens to the issuer in exchange for the underlying fiat currency. The tokens are burned, and the equivalent fiat is sent to the user's bank. This is what makes a stablecoin "redeemable" and thus pegged.
Stablecoin
A stablecoin is a cryptocurrency token whose value is pegged to a stable asset, typically the US dollar at 1:1. Reserve-backed stablecoins (like USDC, USDT, USDB) hold real dollars and cash equivalents that back every token. They combine the speed of crypto rails with the stability of fiat. Used heavily for payments, treasury management, and cross-border transfers.
Stablecoin issuance
Issuance refers to the creation and distribution of new stablecoin tokens, backed by an equivalent reserve. The issuer (e.g., Bridge for USDB, Circle for USDC) is legally responsible for maintaining the 1:1 peg through reserve management.
Veja também: mint · redemption · custodian
USDB
USDB is a US dollar–pegged stablecoin issued by Bridge (REDFi's payments partner). It's fully reserve-backed, redeemable 1:1 for USD, and the default asset for REDFi treasury balances. USDB also pays REDFi Rewards (3% annual reward) on held balances. It runs on multiple blockchains including Ethereum, Base, and Solana.
Veja também: stablecoin · usdc · rewards
USDC
USDC (USD Coin) is issued by Circle, a US-regulated financial services company. It's fully reserve-backed by cash and short-duration US Treasuries, with monthly attestations. USDC is one of the two largest US dollar stablecoins by market cap.
Veja também: stablecoin · usdt · usdb
USDT
USDT (Tether) is issued by Tether Limited and is the largest stablecoin by market capitalization. It's pegged 1:1 to the US dollar and used widely on global crypto exchanges. Note: USDT is restricted in EEA (European Economic Area) due to MiCA regulations; REDFi blocks USDT for EEA residents.
Veja também: stablecoin · usdc · eea
Payment Rails
ACH
ACH (Automated Clearing House) is the network US banks use to move money between accounts. Transfers typically settle in 1–3 business days. ACH is cheap (often free or under $1) but slow. Same-Day ACH is a faster variant that settles within the same business day for a small fee.
Bre-B
Bre-B is Colombia's instant interbank payment system, operated by Banco de la República. Transfers settle in seconds 24/7. REDFi supports Bre-B as a beta payment rail for Colombian Peso (COP) on/off-ramps.
Cross-border payment
A cross-border payment is any transfer of money from a sender in one country to a recipient in another, often involving currency conversion. Historically slow (days) and expensive (5–10%) when routed through correspondent banks. Stablecoin rails compress this to minutes and a fraction of a percent.
Veja também: swift · remittance · fx
FedNow
FedNow is a real-time payment service operated by the Federal Reserve, launched in 2023. Unlike Fedwire (business hours) or ACH (batched), FedNow settles transfers in seconds, 24/7/365. Banks must opt in to send and receive. Each transfer is capped (commonly $500,000).
Fedwire
Fedwire (officially the Fedwire Funds Service) is operated by the US Federal Reserve. It moves money between US banks in real time, with same-day settlement. It's used for high-value, time-sensitive transfers like real estate closings and large B2B payments. Cutoff times apply (typically by 5 PM ET).
Veja também: fednow · wire transfer · ach
PIX
PIX is Brazil's instant payment system, launched by the Central Bank in 2020. Settlements happen in under 10 seconds, 24/7. Users send to a "PIX key" — usually an email, phone number, or tax ID — instead of an account number. Now the dominant payment method in Brazil.
Remittance
A remittance is a transfer of money by a worker to their family or community in another country. Total annual remittances worldwide exceed $700 billion. Traditional remittance providers (Western Union, MoneyGram) historically charged 6–10%; stablecoin-based alternatives can cost under 1%.
Veja também: cross border
SEPA
SEPA (Single Euro Payments Area) lets euro-denominated bank transfers work the same way across 36 European countries, treating cross-border euro transfers like domestic ones. SEPA Credit Transfer settles in 1 business day; SEPA Instant settles in 10 seconds.
Veja também: swift · wire transfer
SPEI
SPEI (Sistema de Pagos Electrónicos Interbancarios) is Mexico's real-time interbank transfer system, operated by Banxico. Transfers settle in under a minute. Uses CLABE account numbers (18-digit) for routing.
SWIFT
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the messaging standard that lets banks in different countries communicate to move money across borders. SWIFT itself doesn't move money — it just carries the instructions. International wires via SWIFT typically take 1–5 business days and incur intermediary fees from correspondent banks along the way.
Veja também: wire transfer · cross border · sepa
Wire transfer
A wire transfer is a direct electronic transfer of funds from one bank account to another. Domestic wires (like Fedwire in the US) settle same-day. International wires go through SWIFT and can take several days. Wires are typically faster but more expensive than ACH, and once sent, they are very difficult to reverse.
Rewards
REDFi Rewards
REDFi Rewards are paid on USDB balances held in REDFi accounts. The current rate is 3% annually, accrued continuously and credited monthly. Rewards are paid in USDB. Important: these are rewards, not interest, banking yield, or investment returns. They accrue from the moment funds are deposited until the moment they're spent.
Veja também: usdb · reward bearing
Reward-bearing
A reward-bearing balance is one that automatically accrues REDFi Rewards (currently 3% annually) while the funds are held. Idle USDB earns rewards every second; conversion to spend happens at the moment of payment, so rewards continue right up until purchase.
Banking & Treasury
BIC / SWIFT code
A BIC (Bank Identifier Code), also known as a SWIFT code, identifies a specific bank in international transfers. Format: bank code (4) + country code (2) + location code (2) + optional branch code (3).
Float
Float is the dollar amount of money in transit — sent but not yet settled, or received but not yet usable. Float ties up capital and creates risk. Real-time payment rails reduce float dramatically.
Veja também: liquidity · settlement
FX
FX (Foreign Exchange) is the process of converting one currency into another. The FX market is the largest financial market in the world, with daily turnover exceeding $7 trillion. Every cross-border payment involves FX unless both parties hold the same currency.
Veja também: spread · cross border
FX spread
The FX spread is the gap between the price at which a provider will buy one currency and the price at which they'll sell it. It's how FX providers make money. Banks typically charge 2–5% spreads; REDFi spreads are well under 1% thanks to Bridge's stablecoin infrastructure.
Veja também: fx
IBAN
IBAN (International Bank Account Number) is an internationally agreed-upon system for identifying bank accounts. Used in 80+ countries (mostly European). Format: country code (2 chars) + check digits (2) + domestic account info (up to 30 chars). E.g., GB29 NWBK 6016 1331 9268 19.
Liquidity
Liquidity measures how quickly and cheaply an asset can be converted into cash at fair value. Bank deposits are highly liquid; real estate is not. Stablecoins are liquid — they can be redeemed for fiat on demand.
Veja também: float
Settlement
Settlement is the actual movement and finalization of money between two parties' accounts. Real-time systems (FedNow, PIX, stablecoins) settle in seconds. Traditional rails (ACH, SWIFT) settle in 1–5 business days. Until settlement, the transfer is reversible.
Veja também: t 0 · wire transfer
T+0 / T+1 / T+2
T+N is shorthand for settlement timing in finance, where T is the trade or transaction date. T+0 means same-day settlement. T+1 (one business day later) is the new standard for US securities. ACH typically settles T+1 to T+3. Stablecoin transfers are T+0 in seconds.
Veja também: settlement
Treasury
A company's treasury is responsible for managing its cash and other liquid assets — keeping operations funded, managing currency exposure, and (sometimes) earning return on idle cash. For startups and SMBs, treasury used to require multiple bank accounts and FX brokers; stablecoin treasuries simplify this dramatically.
Compliance & Identity
AAL2
AAL2 (Authenticator Assurance Level 2) is the second level defined by NIST's SP 800-63 guidelines. It requires two distinct authentication factors. REDFi enforces AAL2 for sensitive operations like high-value transfers and account-setting changes.
Veja também: mfa
AML
AML (Anti-Money Laundering) refers to the laws, regulations, and procedures financial institutions follow to prevent criminals from disguising illegally obtained funds as legitimate. AML programs include KYC, transaction monitoring, suspicious activity reports (SARs), and sanctions screening.
Veja também: kyc · ofac · travel rule
EEA
The EEA (European Economic Area) includes the 27 EU member states plus Iceland, Liechtenstein, and Norway. EEA-wide regulations like MiCA (Markets in Crypto-Assets Regulation) restrict certain stablecoins for EEA residents. REDFi blocks USDT for EEA users; USDC and USDB remain available.
KYB
KYB (Know Your Business) is the corporate equivalent of KYC. To open a business account, the platform verifies the entity's legal existence (incorporation docs), beneficial owners (UBOs holding ≥25%), business address, and authorized representatives.
KYC
KYC (Know Your Customer) is the regulatory process of verifying a customer's identity before opening a financial account. Typical requirements: a government-issued ID, proof of address, and a selfie for liveness check. KYC is mandated globally to prevent fraud, money laundering, and terrorist financing.
MFA
MFA (Multi-Factor Authentication) requires users to provide two or more independent credentials before being granted access. Typical factors: something you know (password), something you have (phone, hardware key), something you are (biometric). REDFi requires MFA on all accounts.
OFAC
OFAC (Office of Foreign Assets Control) is the US Treasury Department office that enforces economic sanctions. Financial institutions must screen all customers and transactions against OFAC's Specially Designated Nationals (SDN) list. Doing business with a sanctioned party is a serious crime.
Veja também: aml
Travel Rule
The Travel Rule (FATF Recommendation 16) requires virtual asset service providers to share sender and recipient identifying information when transferring crypto above a threshold (often $1,000 USD-equivalent). It's the crypto-industry equivalent of the bank wire transfer information requirement.
Crypto & Technical
Webhook
A webhook is a way for one system to notify another system of an event in real time, by sending an HTTP request. REDFi uses webhooks from Bridge to receive instant updates: "the user just completed KYC," "the wire just arrived," "the conversion is done." Faster and more reliable than polling.