Hedera
  • Welcome to Hedera — let’s build the future
  • Getting Started
    • Environment Setup
    • Web2 Developers
      • Transfer HBAR
      • Create a Token
      • Create a Topic
    • EVM Developers
      • Deploy a Contract
  • Tutorials
    • Smart Contracts
      • How to Mint & Burn an ERC-721 Token Using Hardhat and Ethers (Part 1)
      • How to Set Access Control, a Token URI, Pause, and Transfer an ERC-721 Token Using Hardhat (Part 2)
      • How to Upgrade an ERC-721 Token with OpenZeppelin UUPS Proxies and Hardhat (Part 3)
      • How to Verify a Smart Contract on HashScan
      • Deploy a Smart Contract Using Remix
      • Deploy a Smart Contract Using Hardhat and Hiero JSON-RPC Relay
      • Deploy Your First Smart Contract
      • Deploy a Contract Using the Hedera Token Service
      • Send and Receive HBAR Using Solidity Smart Contracts
      • Deploy By Leveraging Ethereum Developer Tools On Hedera
      • Deploy a Subgraph Using The Graph and Hedera JSON-RPC Relay
      • Deploy Smart Contracts on Hedera Using Truffle
      • The Power of Native Hedera Tokens as ERC-20 Tokens: A step-by-step guide
      • HTS x EVM - Part 1: How to Mint NFTs
      • HTS x EVM - Part 2: KYC & Update
      • HTS x EVM - Part 3: How to Pause, Freeze, Wipe, and Delete NFTs
      • Hedera Smart Contracts Workshop
        • Setup
        • Solidity
        • Hedera SDK JS
        • Hardhat and EthersJs
        • Outro
      • Foundry
        • How to Setup Foundry and Write a Basic Unit Test
        • How to Deploy and Verify a Hedera Smart Contract with Foundry
        • How to Test A Solidity Event
        • How to Fork Testnet on Latest Block
    • Consensus
      • Submit Your First Message
      • Submit Message to Private Topic
      • Query Messages with Mirror Node
    • Tokens
      • Create and Transfer Your First NFT
      • Create and Transfer Your First Fungible Token
      • Create and Transfer an NFT using a Solidity Contract
      • Structure Your Token Metadata Using JSON Schema V2
      • Hedera Token Service - Part 1: How to Mint NFTs
      • Hedera Token Service - Part 2: KYC, Update, and Scheduled Transactions
      • Hedera Token Service - Part 3: How to Pause, Freeze, Wipe, and Delete NFTs
      • Create Your First Frictionless Airdrop Campaign
    • Local Node
      • How to Run Hedera Local Node in a Cloud Development Environment (CDE)
        • Run a Local Node in Gitpod
        • Run a Local Node in Codespaces
      • How to Set Up a Hedera Local Node
      • Set Up a Hedera Local Node using the NPM CLI
    • More Tutorials
      • Create and Fund Your Hedera Testnet Account
      • How to Create a Personal Access Token (API Key) on the Hedera Portal
      • How to Auto-Create Hedera Accounts with HBAR and Token Transfers
      • How to Configure a Mirror Node and Query Data
      • How to Generate a Random Number on Hedera
      • Get Started with the Hedera Consensus Service Fabric Plugin
        • Virtual Environment Setup
      • Schedule Your First Transaction
      • How to Connect to Hedera Networks Over RPC
        • Configuring Hashio RPC endpoints
        • Configuring Hiero JSON-RPC Relay endpoints
        • Configuring Validation Cloud RPC endpoints
      • JavaScript Testing
      • Create a Hedera DApp Integrated with WalletConnect
      • How to Connect MetaMask to Hedera
    • Demo Applications
    • Starter Projects
    • Building on Hedera (course)
  • Networks
    • Mainnet
      • Mainnet Accounts
      • Mainnet Consensus Nodes
        • Node Requirements
          • FAQ
      • Fees
        • Transaction Records
    • Testnets
      • Testnet Accounts
      • Testnet Consensus Nodes
    • Localnet
      • Single Node Configuration
      • Multinode Configuration
    • Network Explorers and Tools
    • Release Notes
      • Consensus Node
      • Hedera Mirror Node
  • Core Concepts
    • Accounts
      • Account Creation
      • Auto Account Creation
      • Account Properties
    • Keys and Signatures
    • Schedule Transaction
    • Smart Contracts
      • Understanding Hedera's EVM Differences and Compatibility
        • For EVM Developers Migrating to Hedera
          • Accounts, Signature Verification & Keys (ECDSA vs. ED25519)
          • JSON-RPC Relay and EVM Tooling
          • Token Management with Hedera Token Service
          • Decimal Handling (8 vs. 18 Decimals)
          • Handling HBAR Transfers in Contracts
        • For Hedera-Native Developers Adding Smart Contract Functionality
          • Integrating ED25519 Accounts and Advanced Features Into Smart Contracts
          • JSON-RPC Relay and State Queries
          • Extending Token Management with Smart Contracts
      • Creating Smart Contracts
      • Compiling Smart Contracts
      • System Smart Contracts
        • Hedera Account Service
        • Hedera Schedule Service
      • Gas and Fees
      • JSON-RPC Relay
      • Deploying Smart Contracts
      • Smart Contract Addresses
      • Verifying Smart Contracts
      • Smart Contract Traceability
      • Tokens Managed by Smart Contracts
        • ERC-20 (Fungible Tokens)
        • ERC-721 (Non-Fungible Token)
        • ERC-3643 Real World Assets (RWA)
        • ERC-1363 (Payable Tokens)
        • Hedera Token Service System Contract
      • Wrapped HBAR (WHBAR)
      • Smart Contract Rent
      • Smart Contract Security
      • EVM Archive Node Queries
    • Tokens
      • Tokenization on Hedera
      • Hedera Token Service (HTS) Native Tokenization
        • Token Types and ID Formats
        • Token Properties
        • Token Creation
        • Custom Fee Schedule
        • Token Airdrops
      • ERC/EVM-Compatible Tokenization
      • Hybrid (HTS + EVM ) Tokenization
    • Staking
      • Staking Program
      • Stake HBAR
    • Hashgraph Consensus Algorithm
      • Gossip About Gossip
      • Virtual Voting
    • Transactions and Queries
      • Transaction Properties
    • State and History
    • Mirror Nodes
      • Hedera Mirror Node
      • One Click Mirror Node Deployment
      • Run Your Own Mirror Node
        • Run Your Own Mirror Node with Google Cloud Storage (GCS)
        • Run Your Mirror Node with Amazon Web Services S3 (AWS)
  • Open Source Solutions and Integrations
    • AI Studio on Hedera
      • ElizaOS Plugin for Hedera
      • Hedera AI Agent Kit
      • MCP Server
      • OpenConvAI
    • AI Tools for Developers
      • Hedera Hivemind
      • Kapa AI
    • Asset Tokenization Studio (ATS)
      • Web User Interface (UI)
      • Frequently Asked Questions (FAQs)
    • HashioDAO
      • Governance Token DAO
      • NFT DAO
      • Multisig DAO
      • DAO Proposals
      • Local Environment Setup
    • Hedera CLI
    • Hedera Contract Builder
    • Hedera Custodians Library
      • How to use it
    • Hedera Developers Code Repository
    • Hedera Developer Playground
    • Hedera Wallet Snap By MetaMask
      • Hedera Wallet Snap Documentation
      • Tutorial: MetaMask Snaps – What Are They and How to Use Them
    • Interoperability and Bridging
      • LayerZero
    • NFT Studio
      • Airdrop List Verifier
      • Metadata Validator
      • NFT Rarity Inspector
      • NFT Token Holders List Builder
      • NFT Risk Calculator
      • Token Balance Snapshot
      • Hedera NFT SDK
    • Oracle Networks
      • Chainlink Oracles
      • Pyth Oracles
      • Supra Oracles
    • Stablecoin Studio
      • Core Concepts
      • Web UI Application
      • CLI Management
      • TypeScript SDK
    • Hedera Guardian
    • Hedera WalletConnect
  • SDKs & APIs
    • SDKs
      • Build Your Hedera Client
      • Set Up Your Local Network
      • Network Address Book
      • Keys
        • Generate a new key pair
        • Import an existing key
        • Create a key list
        • Create a threshold key
        • Generate a mnemonic phrase
        • Recover keys from a mnemonic phrase
      • HBAR
      • Specialized Types
      • Pseudorandom Number Generator
      • Transactions
        • Create a Batch Transaction
        • Transaction ID
        • Modify transaction fields
        • Create an unsigned transaction
        • Manually sign a transaction
        • Submit a transaction
        • Sign a multisignature transaction
        • Get a transaction receipt
        • Get a transaction record
      • Schedule Transaction
        • Schedule ID
        • Create a schedule transaction
        • Sign a scheduled transaction
        • Delete a schedule transaction
        • Get schedule info
        • Network Response Messages
      • Queries
      • General Network Response Messages
      • Accounts and HBAR
        • Create an account
        • Update an account
        • Transfer cryptocurrency
        • Approve an allowance
        • Delete an allowance
        • Delete an account
        • Get account balance
        • Get account info
        • Network Response Messages
      • Consensus Service
        • Create a topic
        • Update a topic
        • Submit a message
        • Delete a topic
        • Get topic messages
        • Get topic info
        • Network Response
      • Token Service
        • Token ID
        • NFT ID
        • Token types
        • Create a token
        • Custom token fees
        • Update a token
        • Update token custom fees
        • Update NFT metadata
        • Transfer tokens
        • Airdrop a token
        • Claim a token
        • Cancel a token
        • Reject a token
        • Delete a token
        • Mint a token
        • Burn a token
        • Freeze an account
        • Unfreeze an account
        • Enable KYC account flag
        • Disable KYC account flag
        • Associate tokens to an account
        • Dissociate tokens from an account
        • Pause a token
        • Unpause a token
        • Wipe a token
        • Atomic swaps
        • Get account token balance
        • Get token info
        • Get NFT info
        • Network Response Messages
      • File Service
        • Create a file
        • Append to a file
        • Update a file
        • Delete a file
        • Get file contents
        • Get file info
        • Network Response Messages
      • Smart Contract Service
        • Delegate Contract ID
        • Create a smart contract
        • Update a smart contract
        • Delete a smart contract
        • Call a smart contract function
        • Ethereum transaction
        • Get a smart contract function
        • Get smart contract bytecode
        • Get smart contract info
        • Hedera Service Solidity Libraries
        • Network Response Messages
      • Signature Provider
        • Provider
        • Signer
        • Wallet
        • Local Provider
    • Mirror Node REST API
      • Accounts
      • Balances
      • Blocks
      • Schedule Transactions
      • Smart Contracts
      • Tokens
      • Topics
      • Transactions
      • Network
    • Hedera Consensus Service gRPC API
    • Hedera APIs
      • Basic Types
        • AccountAmount
        • AccountID
        • ContractID
        • CryptoAllowance
        • CurrentAndNextFeeSchedule
        • FeeComponents
        • FeeData
        • FeeSchedule
        • FileID
        • Fraction
        • HederaFunctionality
        • Key
        • KeyList
        • NftAllowance
        • NftTransfer
        • NodeAddress
        • NodeAddressBook
        • RealmID
        • ScheduleID
        • SemanticVersion
        • ServicesConfigurationList
        • ServiceEndpoint
        • Setting
        • ShardID
        • Signature
        • SignatureList
        • SignatureMap
        • SignaturePair
        • SubType
        • TransferList
        • TransactionID
        • ThresholdKey
        • ThresholdSignature
        • TokenAllowance
        • TokenBalance
        • TokenBalances
        • TokenFreezeStatus
        • TokenPauseStatus
        • TokenID
        • TokenKycStatus
        • TokenRelationship
        • TokenTransferList
        • TokenType
        • TokenSupplyType
        • TopicID
        • TransactionFeeSchedule
      • Cryptocurrency Accounts
        • CryptoService
        • CryptApproveAllowance
        • CryptoDeleteAllowance
        • CryptoCreate
        • CryptoTransfer
        • CryptoUpdate
        • CryptoDelete
        • CryptoGetAccountBalance
        • CryptoGetAccountRecords
        • CryptoGetInfo
        • CryptoGetStakers
      • Consensus Service
        • Consensus Service
        • ConsensusCreateTopic
        • ConsensusUpdateTopic
        • ConsensusSubmitMessage
        • ConsensusDeleteTopic
        • ConsensusTopicInfo
        • ConsensusGetTopicInfo
      • Schedule Service
        • ScheduleService
        • SchedulableTransactionBody
        • ScheduleCreate
        • ScheduleDelete
        • ScheduleSign
        • ScheduleGetInfo
      • Token Service
        • TokenService
        • CustomFees
          • AssessedCustomFee
          • CustomFee
          • FractionalFee
          • FixedFee
          • RoyaltyFee
        • TokenCreate
        • TokenUpdate
        • TokenFeeScheduleUpdate
        • TokenDelete
        • TokenMint
        • TokenBurn
        • TokenFreezeAccount
        • TokenUnfreezeAccount
        • TokenGrantKyc
        • TokenRevokeKyc
        • TokenAssociate
        • TokenDissociate
        • TokenWipeAccount
        • TokenPause
        • TokenUnpause
        • TokenGetInfo
        • TokenGetNftInfo
        • TokenGetNftInfos
        • TokenGetAccountNftInfo
      • File Service
        • FileService
        • FileCreate
        • FileAppend
        • FileUpdate
        • FileDelete
        • FileGetContents
        • FileGetInfo
      • Smart Contracts
        • SmartContractService
        • ContractCall
        • ContractCallLocal
        • ContractCreate
        • ContractUpdate
        • ContractDelete
        • ContractGetByteCode
        • ContractGetInfo
        • ContractGetRecords
      • Miscellaneous
        • Duration
        • ExchangeRate
        • Freeze
        • FreezeType
        • GetByKey
        • GetBySolidityID
        • NetworkGetVersionInfo
        • NetworkService
        • Query
        • QueryHeader
        • Response
        • ResponseCode
        • ResponseHeader
        • SystemDelete
        • SystemUndelete
        • TimeStamp
        • Transaction
        • TransactionBody
        • TransactionContents
        • TransactionGetFastRecord
        • TransactionGetReceipt
        • TransactionGetRecord
        • TransactionReceipt
        • TransactionRecord
        • TransactionResponse
        • UncheckedSubmit
    • Hedera Status API
  • Support & Community
    • Glossary
    • Contributing to Hedera documentation
      • Contribution Guidelines
        • Creating Issues
        • Creating Pull Requests
        • Hedera Improvement Proposal (HIP)
        • Submit Demo Applications
      • Style Guide
        • Understanding different types of documentation
        • Use of HBAR and tinybars
        • Use of web2 and web3
        • Language and grammar
        • Formatting
        • Punctuation
        • GitBook Markdown Syntax
    • Discord
    • GitHub
    • Stack Overflow
    • Hedera Blog
    • Bug Bounty
    • Hedera Help
    • Documentation Survey
    • Meetups
    • Brand Guidelines
    • Status Page
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INTRODUCTION

  • Fees
  • Core Concepts
  • Network Information

TOOLS

  • Bridge
  • Oracles
  • Explorers
  • Developer Portal & Faucet

RESOURCES

  • Status
  • Bug Bounty
  • Build on Hedera (course)
  • Documentation Survey
On this page
  • Introduction
  • Stablecoin Studio
  • Core Components
  • Robust Administration and Compliance Configurations
  • Ecosystem Integrations
  • Proof-of-Reserve (PoR) for Treasury Management
  • Stablecoin Studio: How It All Works Together

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  1. Open Source Solutions and Integrations
  2. Stablecoin Studio

Core Concepts

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Last updated 8 months ago

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Introduction

As the adoption of grows, a common obstacle deterring new adoption by users is price volatility, particularly when considering these assets for everyday transactions. Stablecoins offer a solution to this volatility by maintaining a consistent value, pegged to traditional assets like the US Dollar. Prominent examples include Tether (USDT), USD Coin (USDC), and Binance USD (BUSD). The stablecoin landscape also features asset-backed options such as MakerDAO's DAI, which is crypto-secured, and Paxos Gold (PAXG), backed by physical gold. These stable assets have not only transformed crypto trading by offering a secure place to store value temporarily but also have the potential to revolutionize e-commerce by providing a stable medium for online transactions.

A is a specialized form of cryptocurrency engineered to maintain a stable value by pegging it to an external asset, such as a fiat currency like the US Dollar or a commodity like gold. By doing so, stablecoins seek to combine the programmability and ease of transfer inherent in cryptocurrencies with the price stability typically associated with traditional currencies. This low-volatility characteristic makes stablecoins particularly useful for transactions, cross-border payments, and as a stable asset within decentralized finance ecosystems.

Despite its many advantages, Hedera currently lacks a ready-to-use stablecoin framework. Stablecoin Studio aims to fill that void by offering a comprehensive stablecoin solution tailored to Hedera’s architecture. Developers will be equipped with a suite of resources, including essential tools, documentation, and sample code, allowing them to create applications that make use of stablecoins, such as digital wallets. The ultimate goal is to facilitate the seamless integration of stablecoins into a variety of platforms and applications, thereby boosting Hedera’s utility and adoption.


Stablecoin Studio

Stablecoin Studio is an open-source solution that simplifies and enhances the granularity of access control and permission management when issuing using Hedera network services. Utilizing a hybrid solution, the platform leverages both and , offering with Smart Contracts. This adds an extra layer of flexibility and capability for stablecoin issuers. As an all-in-one toolkit, this project enables stablecoin issuers to easily deploy applications and oversee operations via a comprehensive management toolkit, streamlining digital asset operations.

The toolkit offers functionality that utilizes existing systems or on-chain oracles to bolster the ability to provide transparency in disclosure while seamless custody provider integrations ease development and reduce time-to-market.

Complemented by advanced Hedera-native / account flags and integrated service provider hooks, Stablecoin Studio gives issuers new ways to manage compliance and security.


Core Components

The core components of Stablecoin Studio include these four components that help simplify stablecoin creation and management:


Robust Administration and Compliance Configurations

Stablecoin Studio includes Hedera-native token administration functionalities, enabling issuers to easily burn, mint (cash-in), freeze, wipe, and pause stablecoins. Account-based permissions, like native KYC account flags, provide compliance configurations when connecting Stablecoin Studio to custody providers and KYC/AML services.

Hedera Native Token Administration Functionalities

Functionality
Description

CashIn (Mint)

Issuers can effortlessly create new tokens, increasing the total supply of the stablecoin. Minting is often subject to regulatory compliance and internal governance.

Burn

The platform allows issuers to reduce the overall token supply by 'burning' or destroying tokens, usually in a controlled and auditable manner.

Freeze/Unfreeze

For various compliance-related or operational reasons, Stablecoin Studio provides the option to freeze tokens, making them non-transferable until further actions are taken.

Pause/Unpause

The platform includes a pause functionality, enabling issuers to temporarily halt all token-related activities in emergencies or for scheduled maintenance.

Wipe

Stablecoin Studio allows issuers to wipe or delete tokens from specific accounts, mainly for regulatory or security reasons.

Account-Based Permissions and Compliance Features

Compliance Mechanisms
Description

Native KYC Account Flags

Incorporate KYC checks directly into the token issuance and management process. These flags serve as compliance markers, indicating whether an account has been verified for KYC requirements.

Integration with Custody Providers

Stablecoin Studio is designed to connect seamlessly with third-party custody solutions, offering an extra layer of security for asset management.

KYC/AML Service Connections

Through native account flags and API integrations, Stablecoin Studio can be easily hooked into existing KYC/AML solutions, streamlining the compliance workflow.


Ecosystem Integrations

The Stablecoin Studio SDK provides integrations into third-party providers who can fully support your stablecoin offering on the public Hedera network. These providers offer solutions for KYC/AML, custody, wallets, infrastructure management, smart contract monitoring, regulatory compliance, and more.

Custody Providers

KYC/AML Service Providers

Oracle Provider


Proof-of-Reserve (PoR) for Treasury Management

Lastly, when using Stablecoin Studio, you can link an existing Oracle-fed reserve contract or let the platform automatically deploy a new one. Both options aim to guarantee the stability of your stablecoin and foster user trust.


Stablecoin Studio: How It All Works Together

  1. SDK: The Software Development Kit (SDK) provides a set of tools and libraries for developers to build and deploy stablecoin applications on the Hedera network. It simplifies the process of interacting with Stablecoin Studio’s “factory contracts” used to create and manage stablecoins.

  2. CLI: The Command Line Interface (CLI) offers a user-friendly way for developers to interact with the SDK and manage stablecoins. It allows developers to perform various operations, such as creating, managing, and operating stablecoins using simple commands.

  3. Web UI: The User Interface (UI) component provides a graphical interface for developers and users to interact with stablecoins on the Hedera network. It simplifies the process of managing and operating stablecoins for non-technical users.

When you initiate the creation process using the SDK, CLI, or Web UI, two smart contracts are deployed: The Hedera Token Manager Proxy and the Hedera Token Manager. The former oversees the ownership of the latter, which in turn is responsible for managing the permissions and functionalities of your stablecoin.

As a stablecoin admin/delegate, you’ll manage your stablecoin using the Hedera Token Manager smart contract, offering granular control and flexibility. End-users will not need to navigate the complexities of smart contracts — they can interact directly with your stablecoin using the Hedera Token Service (HTS), ensuring a more convenient, cost-effective, and scalable experience.

To ensure the security and transparency of your stablecoin, Stablecoin Studio offers a proof-of-reserve (PoR) feature. This feature serves two key objectives: preventing under-collateralization and providing transparent asset backing for your stablecoin. The PoR system employs automated verification, where assets are continually monitored through or similar mechanisms. These monitoring systems subsequently update a dedicated reserve contract to reflect changes in the asset value accurately.

Before you mint new tokens, a automatically checks this reserve contract. Minting is authorized only when sufficient reserve assets are available to back the new tokens. For instance, let's say you have enabled PoR with a reserve of 1,000 units. You can comfortably mint up to 900 tokens. However, if you attempt to mint an additional 100 tokens, the smart contract will halt the process due to insufficient reserves. You also have the flexibility to update these reserves either manually or programmatically as per your operational requirements.

At a functional level, Stablecoin Studio provides a comprehensive architecture that enables developers to create, manage, and operate stablecoins on the Hedera network using pre-built “factory smart contracts” The architecture consists of several components that work together to facilitate the deployment and management of stablecoins:

audited by CertiK.
off-chain
oracles
smart contract
cryptocurrencies
stablecoin
stablecoins
Hedera Token Service (HTS)
Hedera Smart Contract Service (HSCS)
interoperability
Solidity
proof-of-reserve (PoR)
Know Your Customer (KYC)
Anti-Money Laundering (AML)
Proof of Reserve: How does it work?
Stablecoin Studio Work Flow/Process
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The SDK implements the features for creating, managing, and operating stablecoins. The SDK interacts with the Smart Contract and exposes an API to be used by client-facing applications.

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A visually rich platform that adds a layer of user-friendly interaction for creating, managing, and operating tokens. A dApp developed in React. Uses the SDK-exposed API.

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A command line interface (CLI) tool for creating, managing, and operating stablecoins. Uses the SDK-exposed API.

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A set of well-audited, open-source, smart contracts ready to be deployed for creating and managing stablecoins on Hedera network.

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🟠 Integration in progress

Zodia specializes in institutional-grade digital asset custody, offering cutting-edge tech within a compliant framework. They primarily cater to corporate investors and institutions.

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🟠 Integration in progress

DFNS offers a wallet-as-a-service infrastructure targeting crypto developers, allowing developers to focus on their applications by handling private key management.

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🟠 Integration in progress

Hex Trust offers bank-grade digital asset custody. Led by experienced finance and tech experts, their Hex Safe™ platform provides an array of custody solutions.

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Coming soon

Elliptic offers a suite of compliance solutions designed to assist financial institutions. Services include: transaction monitoring for KYC/AML purposes, identity verification, and risk assessment.

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Coming soon

Merkle Science provides transaction monitoring and intelligence solutions for cryptoasset service providers, financial institutions, and government agencies to detect, investigate, and prevent money laundering.

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🟢 Available

HashPort Pro offers an advanced middleware toolkit for enterprises deploying applications on Hedera, using its Validator Swarm for transaction verification. Axiom, a feature of HashPort Pro, is an on-chain oracle linking to banking and fintech for price and reserve data.

TypeScript SDK
Web UI Application
Command Line Interface (CLI)
Smart Contracts
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