System, method and program product for depositing and withdrawing stable value digital assets in exchange for fiat
The present invention generally relates to a method, system and program product for depositing and withdrawing a stable value digital asset tied to a blockchain in exchange for fiat.
1. A method of withdrawing stable value digital asset tokens based on an underlying digital asset from a digital asset exchange computer system in exchange for fiat, wherein the method comprises the steps of:
(a) authenticating, by the digital asset exchange computer system associated with a digital asset exchange, an access request by a first user device associated with a first user to the digital asset exchange computer system, comprising the steps of:
(1) receiving, by the digital asset exchange computer system from the first user device, an authentication request including first user credential information associated with the first user;
(2) determining, by the digital asset exchange computer system, that the first user device is authorized to access the digital asset exchange computer system based at least in part on the first user credential information;
(3) generating, by the digital asset exchange computer system, first graphical user interface information for displaying a first graphical user interface on the first user device;
(4) transmitting, from the digital asset exchange computer system to the first user device, the first graphical user interface information;
(b) obtaining, by the digital asset computer system from the first user device, a withdraw request, comprising the steps of:
(1) receiving, by the digital asset exchange computer system from the first user device, a first electronic request to withdraw stable value digital asset tokens, wherein the stable value digital asset token is tied to an underlying digital asset which is maintained on a distributed public transaction ledger in the form of a blockchain that is maintained by a blockchain network including a plurality of geographically distributed computer systems in a peer-to-peer network, and
each stable value digital asset token is issued based on first smart contract instructions provided at a first contract address on the blockchain;
(2) in response to the first electronic request, obtaining, by the digital asset exchange computer system from a fiat account ledger database stored on computer readable member accessible by the digital asset exchange computer system, first account balance information of the first user indicating a first amount of available fiat for the first user held by the digital asset exchange on behalf of the first user;
(3) generating, by the digital asset exchange computer system, second graphical user interface information including at least the first account balance information;
(4) transmitting, by the digital asset exchange computer system to the first user device, the second graphical user interface information; and
(5) receiving, by the digital asset exchange computer system from the first user device, a second electronic withdrawal request comprising at least:
(A) a first amount of stable value digital asset tokens to be withdrawn; and
(B) a destination address on the underlying blockchain to which the first amount of stable value digital asset tokens is provided;
(c) processing, by the digital asset exchange computer system, the withdraw request by the steps of:
(1) calculating, by the digital asset exchange computer system, a second amount of fiat based on the first amount of stable value digital asset tokens, where the second amount of fiat is determined using a fixed predetermined ratio of stable value digital asset tokens to fiat;
(2) determining, by the digital asset exchange computer system, that the second amount of fiat is less than the first amount of available fiat of the first user;
(3) in the case where the second amount of fiat is less than the first amount of available fiat of the first user, determining a third amount of fiat associated with an updated amount of available fiat of the first user, wherein the third amount of fiat equals the first amount of available fiat of the first user less the second amount of fiat;
(4) updating, by the digital asset exchange computer system, the fiat account ledger database to reflect that the updated amount of available fiat of the first user is the third amount of fiat;
(5) updating, by the digital asset exchange computer system, a stable value digital asset token issuer fiat ledger, to increase a balance of fiat by the second amount of fiat;
(6) generating, by the digital asset exchange computer system, a first transaction request for the blockchain, from a first digital asset exchange public key address on the blockchain, which is mathematically related to a first digital asset exchange private key, which is stored in the computer readable member accessible by the digital asset exchange computer system, to the first contract address associated with a stable value digital asset token issuer, and including a first message including:
i. a request to generate and provide the first amount of stable value digital asset tokens to the destination public address of the first user; and
ii. a digital signature generated using the digital asset exchange private key, and
(7) transmitting, by the digital asset exchange computer system to the blockchain network via the Internet, the first transaction request;
wherein, in response to the first message in the first transaction request, the blockchain network verifies the digital signature and executes the request to generate and provide the first amount of stable value tokens to the destination public address of the first user; and
(8) confirming, by the digital asset exchange computer system based on reference to the blockchain, that the first transaction request has been processed by the blockchain network so that the balance of stable value digital asset tokens in the destination public address of the first user includes the first amount of stable value digital asset tokens.
2. The method of claim 1 , wherein the determining in (a)(2) further determines that the first user is a registered user of the digital asset exchange.
3. The method of claim 1 , wherein the digital asset exchange is licensed by a government regulatory authority.
4. The method of claim 1 , wherein the underlying digital asset is ether and the blockchain is the Ethereum Blockchain.
5. The method of claim 1 , wherein the underlying digital asset is neo and the blockchain is the Neo Blockchain.
6. The method of claim 1 , wherein the fixed predetermined ratio is one stable value digital asset token is equal to one U.S. dollar.
7. The method of claim 1 , wherein the fixed predetermined ratio is one hundred stable value digital asset tokens is equal to one U.S. dollar.
8. The method of claim 1 , wherein the updating in (c)(5) further comprises transferring the second amount of fiat from a digital asset exchange fiat account to a stable value digital asset token issuer fiat account.
9. The method of claim 1 , wherein the updating in (c)(5) further comprises periodically transferring fiat between the digital asset exchange fiat account and the stable value digital asset token issuer fiat account.
10. The method of claim 1 , wherein the request to obtain in the destination public address of the first user the first amount of stable value digital asset tokens includes a request to generate the first amount of stable value digital asset tokens at the destination public address of the first user.
11. The method of claim 1 , wherein the request to obtain in the destination public address of the first user the first amount of stable value digital asset tokens includes a request to transfer the first amount of stable value digital asset tokens from a stable value digital asset token issuer public address to the destination public address of the first user.