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Four flows move value in Issuance. Two are internal to one bank, and two cross banks. Each is described here at the level of what moves, in what order, and what happens on failure.

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Tokenized deposit accounts

A tokenized deposit account is a new deposit product created on the bank’s core, reserved solely for tokenized deposits. Balances held under it are mirrored to the digital ledger, and the product is blocked on the core side with CTS holding the unlock key. See Custom Cores. The flows below move value into, out of, and between these accounts.

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Internal deposits: from demand deposits to tokenized deposits

A customer moves funds between their conventional demand deposit account and their tokenized deposit account at the same bank. Both sides are the bank’s own money on its own core ledger: the movement is a change of form, with no external asset and no escrow. Depositing debits the demand deposit account and credits the tokenized deposit account on the core, then mints the matching tokenized deposit to the customer’s on-chain account, tracked against the bank’s tokenized deposit control account. Withdrawing reverses it: the tokenized deposit is burned, and the funds are credited back to the demand deposit account. A deposit lands on the core ledger first, because the core is the record of record for the incoming funds. A withdrawal clears the digital ledger first, because the digital ledger holds the authoritative spendable balance for a tokenized account. This ensures a tokenized balance cannot be spent twice. See Reconciliation.

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Cross-bank transfers

The sending bank burns its deposit token on send, and the receiving bank mints its own deposit token and credits the recipient. No escrow is involved, and each bank’s token stays within its issuer’s perimeter. The full flow, including the IBC message and acknowledgment, is documented in Token Transfers.

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Refunds

Every cross-bank failure path re-mints the original deposit tokens to the original sender: destination rejection, for example an unknown recipient account, and timeout both resolve the same way. Refunds are automatic rather than operational.

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Settlement

A cross-bank transfer moves value and records the interbank obligation at the same time. The obligations settle separately, in batch, over the rail the bank chose at onboarding, netted or gross as the counterparties agreed. See Settlement and Settlement Options.