> ## Documentation Index
> Fetch the complete documentation index at: https://developers.circle.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How minting and redemption works

> Understand how Circle Mint converts fiat to USDC (minting) and USDC back to fiat (redemption), including settlement timing, account structure, and compliance requirements.

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.

## 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](/circle-mint/howtos/deposit-fiat).

## 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](/circle-mint/howtos/withdraw-fiat).

## Account structure

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

### 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.

### 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.

### 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.

### 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](/circle-mint/references/supported-chains-and-currencies).

### 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.

## 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](/circle-mint/references/blockchain-confirmations).
* **Sending:** You create a transfer to a registered recipient address. Circle
  debits your balance and broadcasts the transaction onchain.

### Transfer status lifecycle

Onchain transfers progress through the following statuses:

| Status     | Description                                                         |
| ---------- | ------------------------------------------------------------------- |
| `pending`  | The transfer request is created but not yet broadcast onchain.      |
| `running`  | The transaction is broadcast and awaiting blockchain confirmations. |
| `complete` | The required confirmations are reached and the transfer is final.   |

For details on confirmation requirements per blockchain, see
[Blockchain confirmations](/circle-mint/references/blockchain-confirmations).
For step-by-step transfer instructions, see
[Transfer USDC Onchain](/circle-mint/howtos/transfer-on-chain).

## 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.

## 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](/circle-mint/howtos/transfer-on-chain#travel-rule-compliance).

## 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](https://app.circle.com/signin). This approval step ensures
compliance with local regulatory requirements in those jurisdictions.