AROOT Selects USDFT Reserve Custodian Bank, Establishes Foundation for Stablecoin Issuance

AROOT has completed the construction of core infrastructure for the issuance of its stablecoin 'USDFT' by selecting a custodian bank to manage the reserves through its local subsidiary in Kazakhstan.

On the 20th, AROOT announced that its Kazakhstan subsidiary, AROOT Kazakhstan Ltd., has designated Alatau City Bank (ACB) as the exclusive reserve custodian bank for USDFT.

According to the company, with the selection of the custodian bank, it has now secured the core foundations necessary for USDFT issuance: a stablecoin issuance license from the Astana Financial Services Authority (AFSA)—the regulatory agency of the Astana International Financial Centre (AIFC), its proprietary digital financial platform 'FORTA', and a reserve management system.

USDFT is a 100% reserve-backed stablecoin pegged one-to-one with the US dollar. Based on US dollars deposited in its reserve account, AROOT plans to issue USDFT after undergoing relevant procedures, and to utilize it for payments, remittances, settlements, and more.

The company explained that ACB was selected as the first reserve custodian bank after comprehensively considering financial stability, understanding of digital financial business, and global dollar settlement capabilities.

As of the end of last year, ACB is one of Kazakhstan’s major commercial banks, with total assets of about 12 trillion won. In particular, the company noted that ACB uses the world’s largest custodian bank, the Bank of New York Mellon (BNY Mellon), as its US dollar correspondent bank, enabling efficient deposits, withdrawals, and international settlements of USDFT reserves in US dollars.

AROOT believes that, since BNY Mellon is a global custodian bank handling about 20% of the world’s investable assets, it will be able to secure competitiveness in future international financial transactions as well.

ACB also serves as the financial partner for the Kazakh government's national strategic city development project, 'Alatau City.' As Alatau City is being established as a digital city where payments for crypto-asset-based products and services will be possible, AROOT plans to expand cooperation regarding digital payments and financial services in this region in the future.

A company representative stated, “If the official license from AFSA serves as the regulatory base for compliant stablecoin issuance and FORTA is the actual transaction processing platform, then selecting the reserve custodian bank marks the securing of financial infrastructure for USDFT operations. With the license, platform, and reserve management system now established, we have completed preparations for the actual USDFT issuance.”

They added, “Our goal is to go beyond the simple issuance of digital assets with USDFT and build digital financial infrastructure that can be used in real-world economic activities, such as B2B trade settlement and cross-border remittances and settlements. We plan to issue USDFT after completing follow-up procedures, including reserve deposits, and will expand collaboration with financial institutions, payment service providers, and global partners to increase practical use cases.”

This selection of a custodian bank is significant in that AROOT has established the regulatory, technological, and financial infrastructure necessary for stablecoin issuance, and has now laid the foundation for the commercialization of USDFT.

This content was produced with the assistance of AI translation services.