StableMint Core

Stablecoin launchpad for institutions with inbuilt KYC/AML compliance & HSM safety controls.

StableMint Core is an institutional-grade stablecoin launchpad designed to empower regulated institutions to issue fully compliant stablecoins with confidence. It combines the compliance and security guarantees of permissioned infrastructure with the scalability and openness of Kadena’s EVM.

At its core, the system leverages two distinct but interconnected environments:

1. Kuro (permissioned chain) – Acts as the compliance layer.

• This layer is responsible for KYC/AML checks, regulatory approvals, and compliance workflows.
• In our hackathon prototype, the compliance logic is mocked through Pact contracts deployed on Kuro, with compliance events mirrored into an EVM contract for orchestrator testing.
• Institutions can customize compliance rules here, ensuring they meet jurisdictional requirements before stablecoins are minted or redeemed.

1. Kadena EVM (public chain) – Acts as the stablecoin issuance and user-facing layer.

• Once compliance checks are cleared on Kuro, the actual minting, transfer, and redemption of stablecoins occurs on Kadena’s permissionless EVM.
• This ensures liquidity, interoperability, and composability with DeFi protocols while preserving compliance guardrails.

System Components

1. Orchestrator

• The orchestrator is the glue between Kuro and Kadena EVM.
• It listens for compliance events on Kuro (e.g., approveMint, approveRedeem) and relays those events to the stablecoin smart contract on Kadena EVM.
• In the prototype, compliance events are mocked as numerical event IDs, but in production they will carry structured payloads (account, amount, timestamp, etc.).
• This design ensures that EVM-side minting cannot occur without compliance-side approval.

1. Relayer

• The relayer is the transaction executor on the Kadena EVM side.
• Once the orchestrator determines that a compliance event is valid, the relayer submits the actual mint or burn transaction on Kadena EVM.
• The relayer pays the gas fees on EVM for these actions, abstracting costs away from the institutions/end-users.
• Institutions interact with the system at a higher level, while relayers ensure smooth execution on-chain.

1. Hardware Security Module (HSM)

• Security is paramount in an institutional setting.
• The HSM manages and secures the cryptographic keys that sign compliance approvals and authorize stablecoin operations.
• This ensures that no unauthorized actor can trigger minting or redemption – even if orchestration or relayers are compromised.
• By integrating HSM, StableMint Core achieves bank-grade custody of critical signing operations.

1. Compliance & KYC/AML Layer

• Every mint or redemption request begins with compliance checks.
• Kuro enforces:
• KYC verification – Only whitelisted/approved wallets can participate.
• AML rules – Suspicious activity can be flagged and blocked before execution.
• Auditability – Every compliance event is logged immutably, ensuring a full audit trail for regulators.

End-to-End Flow

• Institution requests mint of stablecoins.
• Compliance contract on Kuro validates KYC/AML rules.
• Orchestrator detects approval and notifies relayer.
• Relayer submits tx to deploy stablecoin contract & mint tx to Kadena-EVM stablecoin contract.
• Stablecoins appear in institution’s wallet.
• For redemption, the flow mirrors but with token burn on EVM → fiat payout off-chain.

Hackathon Prototype Highlights

• Mocked compliance events on Kuro, mirrored to an EVM contract for integration testing.
• Stablecoin contract on Kadena EVM that enforces mint/redeem only via orchestrated compliance signals.
• Relayer automation for seamless gas payment and transaction submission.
• HSM integration placeholder for future institutional-grade signing security.

Vision StableMint Core enables institutions to issue fully compliant stablecoins out-of-the-box, combining:

• Regulatory trust via Kuro (compliance-first permissioned chain).
• Market reach via Kadena EVM (open DeFi ecosystem).
• Security via HSM-protected keys.
• Seamless orchestration via relayer-driven automation.

This hybrid architecture strikes the balance between permissioned compliance and permissionless innovation, making StableMint Core a foundation for the next wave of institutional stablecoins.

StableMint Core – Hackathon Development Journey

We set out to build StableMint Core, an institutional-grade stablecoin launchpad that merges permissioned compliance with permissionless. Our goal was an end-to-end compliant stablecoin framework that institutions could use out-of-the-box.

Phase 1 – Kuro + Pact (Compliance Layer)

• Spun up a local Kuro cluster on Ubuntu, managing node configs and client YAML.

• Implemented Pact compliance contracts (kuro-compliance.pact) handling KYC, mint approvals, and redemption flows.

• Integrated orchestrator to listen for Pact compliance events, triggering downstream stablecoin actions.

• Relayer connected to Kadena EVM, paying gas fees and executing mints/burns.

• HSM (AWS KMS) integrated for secure key management, ensuring enterprise-grade custody of signing keys.

Phase 2 – Mock Compliance with Solidity

• For faster demo iteration, we introduced KYCRegistry.sol on Kadena EVM:

• Emits KYC Approved and Mint Approved events, mocking compliance signals from Kuro.

• Allowed orchestrator to validate its event-driven pipeline without relying on Pact/Kuro runtime.

• Preserved the real-world flow: compliance → orchestrator → relayer → stablecoin minting.

• Used EIP-712 typed data signatures for relayer submissions to ensure gas-efficient and secure transactions.

Phase 3 – Beyond Local: Fluence Network

• After local Ubuntu cluster running, we deployed Kuro cluster onto the Fluence decentralized network (fluence.network).

• Benefits: scalable orchestration, composable services, and off-chain compute for compliance logic.

• This aligned with our vision: permissioned compliance on Kuro/Fluence + permissionless liquidity on Kadena EVM.

Why StableMint Core Matters

• Institutions demand compliance: integrated KYC/AML checks, event-based compliance logging, and auditability.

• Secure custody: HSM-backed signing avoids key leakage risks.

• Gas abstraction: relayer model shields institutions from on-chain complexity.

• Dual-layer design: Permissioned chain (Kuro) for compliance + Kadena EVM for liquidity and interoperability.

• StableMint Core demonstrates that compliant, event-driven stablecoins are possible today — bridging institutional requirements with Web3 primitives.