> For the complete documentation index, see [llms.txt](https://docs.stablelabs.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stablelabs.co/getting-started-with-genify/how-it-works/tokenization/minting-and-reedeming/utilizing-third-party-fiat-backed-stablecoins.md).

# Utilizing Third-Party Fiat-Backed Stablecoins

When a user initiates the minting with a stablecoin request, the stablecoins are sent to the Genify vault contract, and a redemption request is simultaneously sent to the issuer along with the stablecoins from the vault.

1. Once Genify receives funds from the issuer, credits are debited to the user's account.
2. Upon making a mint request, the specified amount is transferred to our asset custodial/investment firm, which then receives instructions on which asset to purchase and places the order on the exchange.
3. Once the asset acquisition is confirmed, an RWA token authorization request is sent to the RWA treasury, and the token is issued to the user.

#### Redemption and Minting Process

When an RWA redemption is initiated, the following steps occur:

1. **RWA Token Transfer:** The RWA token is sent to the RWA treasury.
2. **Asset Sell Order:** The asset management/investment firm places a sell order on the exchange for the exact amount of assets being redeemed.
3. **Sell Confirmation:** Once the asset sale is confirmed, the proceeds are transferred internally to the bank, and credits are sent to the user's account.

For minting stablecoins (USDT/USDC) on Genify:

1. **Mint Request:** A minting request is sent to the stablecoin issuer.
2. **Stablecoin Reception:** Once the stablecoin vault receives the stablecoins from the issuer, the stablecoins can be claimed by the user.

<figure><img src="/files/Q4BX1nYhzTIMxBt8TW3B" alt=""><figcaption><p>RWA minting/redemtion with stablecoins from other issuers </p></figcaption></figure>

Both types of mint and redemption work independently and are interchangeable.&#x20;

If a user mints an RWA with Stable's STABLEcoins, it can be redeemed for credits, which can then be used to mint stablecoins from other issuers. If an RWA is minted with credits, it can be redeemed either for STABLEcoins or for third-party stablecoins.


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