How Minting and Redemption Works

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Circle Mint’s core operations are minting and redemption. Minting converts fiat currency into stablecoins (USDC or EURC), and redemption converts stablecoins back to fiat. Every token mints and redeems at a 1:1 ratio with the underlying fiat currency. This page explains the mental model behind these operations, including settlement timing, account structure, onchain transfers, fees, and compliance.

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Minting

Minting (also known as an onramp) is the process of depositing fiat currency and receiving an equivalent amount of stablecoins. When you send a fiat transfer to Circle, Circle credits your Mint account balance with the corresponding stablecoin amount at a 1:1 ratio. The minting flow works as follows:

1. You initiate a fiat transfer from your linked bank account to Circle.
2. Circle receives the fiat deposit and credits your Mint account balance.
3. The stablecoins become available for onchain transfers or other operations.

Circle supports multiple payment rails for fiat deposits, including standard wires (FedWire and SWIFT), real-time interbank rails (RTP, SPEI, SEPA, and CHATS) in supported regions, and book transfers when you bank with one of Circle’s settlement partners. Rail availability depends on your region and the currency you are depositing. Settlement timing: Domestic wire deposits received before the daily cutoff settle on the same business day. Real-time interbank rails settle in seconds, subject to network operating hours and transaction limits. International wires take 1-3 business days depending on intermediary banks. In the sandbox environment, mock wire deposits process in batches and may take up to 15 minutes. For step-by-step instructions, see Deposit Fiat.

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Redemption

Redemption (also known as an offramp) is the reverse of minting. You convert stablecoins back to fiat currency by creating a payout to a linked bank account. The redemption flow works as follows:

1. You create a payout request specifying the amount and destination bank account.
2. Circle debits the stablecoin amount from your Mint account balance.
3. Circle sends a fiat transfer to your bank account using the appropriate rail for your region and bank.

Settlement timing: Payouts typically settle on the next business day. In some cases, your bank may reject the incoming wire, resulting in a returned withdrawal. If a payout is returned, the funds are credited back to your Mint account balance. For step-by-step instructions, see Withdraw Fiat.

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Account structure

Your Circle Mint account has several key components that work together to support minting, redemption, and onchain transfers.

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Primary wallet

Every Circle Mint account has a primary wallet identified by a masterWalletId. You retrieve this identifier from the /v1/configuration endpoint. The primary wallet serves as the source for outbound transfers and the destination for inbound deposits.

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Balances

Your account maintains two types of balances:

• Available balance: Settled funds you can transfer or redeem immediately.
• Unsettled balance: Funds that are in transit and not yet available. Wire deposits appear as unsettled until they clear.

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Linked bank accounts

You register external bank accounts to send and receive fiat. Each linked bank account receives a unique Virtual Account Number (VAN). When you wire funds to Circle using the VAN, Circle attributes the deposit to your account without requiring a tracking reference in the payment instruction.

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Deposit addresses

Circle generates one deposit address per blockchain for your account. These addresses receive inbound stablecoin transfers from external wallets. You retrieve your deposit addresses through the API for each supported blockchain.

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Recipient addresses

Recipient addresses are external blockchain addresses that you register and allowlist for outbound transfers. You must create a recipient address before you can send stablecoins to it. This allowlisting step provides an additional layer of security for outbound transfers.

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Onchain transfers

Circle Mint supports both receiving and sending stablecoins onchain.

• Receiving: External wallets send USDC or EURC to your deposit address on any supported blockchain. Circle detects the transfer and credits your account after the required number of blockchain confirmations.
• Sending: You create a transfer to a registered recipient address. Circle debits your balance and broadcasts the transaction onchain.

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Transfer status lifecycle

Onchain transfers progress through the following statuses: For details on confirmation requirements per blockchain, see Blockchain Confirmations. For step-by-step transfer instructions, see Transfer USDC Onchain.

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Network fees

Circle covers gas fees for outbound stablecoin transfers in most cases. You do not need to hold the native token of each blockchain to send USDC or EURC from your Mint account.

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Travel Rule compliance

Transfers of $3,000 or more in value on supported blockchains are subject to the FinCEN Travel Rule, which requires identity data about the originator of the transaction. How Circle handles the identity requirement depends on the type of transfer:

• Business account transfers: Circle uses your company’s identity stored on file. You do not need to include identity data in each request.
• Third-party payouts: If you send funds on behalf of someone else, you must provide the originator’s identity (name and address) in the payout request. Omitting required identity data causes the transfer to fail.

For the full list of supported blockchains and implementation details, see Travel Rule compliance.

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Approval workflows

Customers in France and Singapore are subject to additional recipient address verification requirements. Before an outbound transfer can proceed, the recipient address must be verified through the Mint Console. This approval step ensures compliance with local regulatory requirements in those jurisdictions.