A One-Stop Stablecoin Issuance Solution Built for Security, High Throughput, and Compliance

Client Overview

As a stablecoin issuer focused on global emerging markets, the client concentrates on stablecoin issuance and operations, serving enterprise users and financial institutions across emerging economies such as Southeast Asia and Latin America. As demand for stablecoins in these markets continues to rise, the frequency of mint and burn operations across major public blockchains including Ethereum, Solana, TRON, and Polygon has increased significantly, while also requiring compliance with varying regulatory requirements across different regions.

To support scalable growth and strengthen market trust in its stablecoin, the client urgently needed to build a standardized infrastructure that integrates secure asset custody, high-efficiency smart contract execution, and end-to-end compliance and risk controls. Its key objective was to eliminate single points of failure across the entire stablecoin issuance lifecycle, ensure every cross-chain mint and burn operation strictly follows internal tiered approval policies, and meet global regulators’ audit and compliance requirements for stablecoin issuance.

Business Challenges

When building a stablecoin system for B2B cross-border payments and digital asset trading, the client faced three core challenges:

• Fund security: Stablecoin issuance requires near bank-grade security standards, with the elimination of single points of failure and any risk of unilateral control by an individual.

• High-frequency contract interactions: Mint and burn operations occur frequently and must support multi-chain environments such as Ethereum, Solana, and TRON. Manual contract execution is inefficient and prone to operational errors.

• Compliance and auditability: Every issuance and redemption must be traceable and linked to clearly defined internal approval workflows to meet regulatory and audit requirements.

Cobo’s Solution

Cobo provided the client with a one-stop stablecoin issuance infrastructure spanning wallet custody, mint/burn execution, and policy-driven risk controls. Built on MPC wallets, tokenization tools, and a policy-driven risk control engine, the solution provides a secure and auditable foundation for stablecoin issuance.

MPC Wallets

• Private keys are managed through MPC key sharding, ensuring that no single entity can independently control the complete private key.

• This architecture effectively eliminates single points of failure and aligns with custody requirements for regulated stablecoin programs.

Tokenization Tools: One-Stop Mint/Burn management

• Mint and burn requests can be initiated directly within Cobo’s interface, with automated parameter validation and smart contract execution, eliminating the need for engineering teams to manually operate private keys.

• A unified interface enables liquidity management across multiple blockchains, including Ethereum, Polygon, Solana, and TRON, significantly reducing the operational complexity of multi-chain environments.

Risk Control Engine: Embedded Compliance

• Clear separation of roles between transaction initiators (Traders) and approvers (Admins), with complete audit trails capturing both initiation and approval for every operation.

• Multi-dimensional limits and tiered approval rules based on factors such as transaction size and frequency automatically block unauthorized or anomalous issuance activity.

Results and Impact

Following deployment, the client achieved clear improvements across stablecoin issuance and operations:

• Significantly improved issuance efficiency: Mint and burn operations can be completed within minutes.

• Reduced compliance and audit costs: Each issuance and redemption is recorded both on-chain and within the approval system, substantially shortening data retrieval and reporting cycles for regulatory inquiries and periodic audits.

• Operational risk made visible and controllable: All critical issuance activities are governed by pre-configured risk controls and limits, allowing compliance and risk teams to centrally monitor, adjust, and manage issuance policies and permissions.