Technical Implementation Details

All implementations of bUSD use a multi-wallet approach similar to a centralized exchange. We use hot ⅗ multi-signature wallets to receive funds for mint requests and process redemption requests, and cold ⅗ multi-signature wallets to hold the reserve assets onchain.

Balances between hot and cold wallets are managed in such a way to maintain fast enough mint/redemption requests for users while keeping the majority of funds secured in cold storage devices.