Goldsky

Stablecoin mint and burn tie-out to reserves

Talk to our team

What it is

A stablecoin mint and burn tie-out matches every mint and burn of the token to the reserve movement behind it, also called stablecoin reserve reconciliation.

Stablecoin issuers and the platforms that issue for them run it because reserve rules such as the GENIUS Act and MiCA expect reserves to back every token in circulation, and an examiner will ask to see each event with its match.

Goldsky can record every mint and burn, fetch the matching cash movement from your custodian and flag any gap; your team keeps the reserves and answers the examiner.

How a mint and burn tie-out to reserves works

The diagram follows one mint or burn from the chain to the record you hand your examiner, and shows who does each step. Your setup may differ.

Tokens minted or burnedEach one should move reserves

Reserve bankReserves moveWire in for a mint, out for a burn

TurboRecord every mint and burnHistory in your warehouse for the exam

Hand to your examinerEvery event with its match

ComposeTie each one outCash movement fetched, gaps flagged

Goldsky
Your provider

How to tie out stablecoin mints and burns to reserves

A pipeline records every mint and burn in your warehouse, and a task that Goldsky hosts runs on each one: it fetches the matching cash movement from your custodian, compares the two and flags any gap. You hand the matched history to your examiner.

What you’ll need

Goldsky Turbo
Goldsky Compose
A reserve custodian or bank with an API that reports cash movements
A data warehouse or object store for the event history
A reference that links each mint or burn to its cash movement, such as an order ID

Mint or burn tokens
Every new token should be backed by cash that came in, and every burned token should match cash paid out.
Mints and burns are recorded on the chain as events from the token contract. Each one should have a reserve movement of the same amount, close to the same time.
Record every mint and burn
Handled by Goldsky Turbo
The examination covers every event in the period, so you need a complete history you can query.
Decode each mint and burn with its amount, block, time and transaction hash and store it where finance and examiners can query it. A history rebuilt by hand before each exam is where gaps hide.
With Goldsky, a Turbo Pipelines pipeline decodes the token’s events with _gs_log_decode and writes them as Parquet files to S3-compatible storage, which your warehouse can query.
Write events to S3 as Parquet (opens in a new tab)
Move the reserves
The cash side of each mint or burn is booked by whoever holds the reserves.
Your reserve bank books the incoming payment for a mint or the outgoing payment for a burn. If the booking carries no reference to the onchain event, matching falls back to amount and time, and two same-sized events on one day can’t be told apart.
Tie each event to its reserve movement
Handled by Goldsky Compose
Each mint or burn is checked against the cash that should have moved with it.
For every event, fetch the matching movement from the custodian, compare amounts and record a match or a gap. A burn with no payout, or a mint with no deposit, is a reserve shortfall someone has to explain.
Goldsky Compose can run a task on each mint and burn through an onchain event trigger, fetch the custodian’s record with fetch and log the comparison. Set confirmations on the trigger so the task waits for the event’s block to settle, together with parallel_processing: true, which the confirmation hold needs; events then run side by side rather than in block order.
Trigger a task on onchain events (opens in a new tab)
Hand the record to your examiner
The examiner wants every event in the period with its matching reserve movement and any gap explained.
Export the period’s events with their matches, the gaps and how each was resolved. Totals you calculate for the report come from your warehouse, so they can be traced back to individual events.