USDB FAQ

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How is USDB backed?

USDB is fully backed 1:1 by US Treasury bills and cash equivalents, held by regulated custodians. It’s issued by Brale, a licensed stablecoin issuer. Brale maintains reserves in:

• Short-duration US Treasury Bills (less than 3 months maturity)
• Cash at regulated U.S. financial institutions

Every USDB is redeemable for $1 USD worth of these assets.

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Who is Brale?

Brale is a regulated stablecoin-as-a-service provider based in the United States. Licensing: Registered Money Services Business (MSB) with FinCEN (#31000257808337), holds Money Transmitter licenses in 44 U.S. states (NMLS ID #2376957), and is subject to quarterly state reporting and federal compliance requirements. You can verify Brale’s licenses yourself at nmlsconsumeraccess.org.

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How are reserves verified?

Brale undergoes multiple layers of independent verification:

• Monthly audits: Third-party reserve attestations by Abdo accounting firm
• Daily reporting: Public self-attestations of reserves published daily
• Annual audit: Comprehensive financial review by a licensed CPA firm
• Daily reconciliation: Automated matching of on-chain token supply vs. fiat balances

Reserve attestations are publicly available on brale.xyz.

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How are BTC rewards funded?

Flashnet funds rewards from protocol fees and other revenue. As volume grows, so does the revenue base that sustains rewards. This system is baked into Flashnet’s long-term strategy, and is not a promotional campaign. Rewards are paid daily in BTC and scale with your protocol usage.

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Is there a lock-up period?

No. You can buy, sell, transfer, or redeem your USDB at any time. Rewards are calculated based on a rolling average and trading volume, but there’s no minimum holding period or withdrawal restrictions.

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How do I exit a large position?

USDB has multiple exit paths: swap to BTC on any supported venue (Luminex, Utxo.Fun, SatsTerminal, Xverse), bridge out to USDC on any supported chain, or redeem with Brale for USD or USDC.

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What’s the minimum to earn rewards?

10 USDB. Balances below 10 USDB don’t earn rewards.

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How often are rewards paid?

Daily. Rewards are calculated at midnight UTC and distributed to eligible wallets.

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How does USDB maintain its peg?

USDB maintains its $1 peg through full 1:1 backing by US Treasury bills and cash equivalents. The value is secured by real assets held by regulated custodians.

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Can I redeem USDB for USD directly?

The primary way to exit USDB today is to swap USDB → BTC on Flashnet, bridge BTC to another chain, and sell BTC for fiat. Direct USD redemption through Brale may be available for institutional users.

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How are reserves protected?

Brale maintains multiple layers of protection: Legal structure: Reserves are held in segregated accounts at regulated U.S. financial institutions. The structure is bankruptcy-remote, with reserves legally separate from Brale’s operational funds. Reserves are used exclusively to back outstanding USDB. Security:

• SOC 2 Type II certified (highest standards for security, availability, and confidentiality)
• Smart contracts independently audited by Certik
• Multi-party computation (MPC) for private key protection

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Can I use USDB outside of Flashnet?

Yes. USDB is a Spark-native token that can be held in any Spark wallet, transferred to any Spark address, and used in any Spark-compatible application. Flashnet is just one place to trade and earn rewards on USDB.

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What is Spark?

Spark is a Bitcoin Layer 2 network that enables instant, low-cost transfers of BTC and tokens like USDB. It uses a FROST-based protocol to achieve sub-second settlement while maintaining self-custody. Learn more at spark.money or read the Spark documentation.