Summary
The Hazel Network uses a single integrated smart contract that issues a dual-character tokenized US dollar. Inside the consortium, the token is a bank deposit with FDIC insurance. Outside the consortium, it transforms into a GENIUS Act-compliant stablecoin backed 1:1 by cash and Treasuries. No conversion transaction is needed — the token programmatically transforms when crossing the consortium boundary. Three compliance layers: (1) off-chain AML/fraud/sanctions screening, (2) blockchain analytics preventing high-risk transactions, (3) on-chain sanctions oracle. The smart contract automatically blocks out-of-consortium transfers exceeding Custodia's verified reserve balance. Three integration models: Basic (4-6 weeks, no core integration), Advanced (batch files + SDK), Enterprise (real-time API). Running on Ethereum mainnet since March 2026. Q4 2026 target for full availability.
Key Points
- Single smart contract issues dual-character token (deposit inside, stablecoin outside)
- No conversion transaction needed — automatic transformation at consortium boundary
- Three compliance layers: fiat screening, blockchain analytics, on-chain sanctions oracle
- Smart contract enforces reserve balance limits programmatically
- Three integration models: Basic (4-6 weeks), Advanced, Enterprise
- Running on Ethereum mainnet since March 2026
- Q4 2026 target for full bank/customer availability
- Protected by US Patents 11,392,906, 12,450,578, 12,579,525
- First announced pilot: Participate (bank-to-bank loan participation)