Redeem

Overview

Orchestrations enable you to convert stablecoins back to USD and withdraw to external bank accounts. These can be triggered through ad-hoc orchestrations from profiles or rule-based orchestrations from external crypto deposits.

Redeem Flow Options

Creating Redemptions

Example 1: USDC → USD (Ad-hoc, Profile to Bank)

Use the Create Orchestration endpoint to convert USDC from your profile to USD and withdraw to a bank account. You’ll need a bank_account_id from creating a fiat account:

Show Request

curl -X POST 'https://api.paxos.com/v2/orchestration/orchestrations' \
  -H 'Authorization: Bearer {access_token}' \
  -H 'Content-Type: application/json' \
  -d '{
    "ref_id": "redeem_usdc_usd_bank",
    "profile_id": "{profile_id}",
    "source_asset": "USDC",
    "source_amount": "500",
    "destination_asset": "USD",
    "source": {
      "profile": {
        "profile_id": "{profile_id}"
      }
    },
    "destination": {
      "fiat": {
        "bank_account_id": "{bank_account_id}",
        "memo": "Redemption payment"
      }
    }
  }'

Show Response

{
  "orchestration": {
    "id": "orch_789ghi",
    "ref_id": "redeem_usdc_usd_bank",
    "profile_id": "{profile_id}",
    "source_asset": "USDC",
    "source_amount": "500",
    "destination_asset": "USD",
    "destination_amount": "500",
    "source": {
      "profile": {
        "profile_id": "{profile_id}"
      }
    },
    "destination": {
      "fiat": {
        "bank_account_id": "{bank_account_id}",
        "memo": "Redemption payment"
      }
    },
    "status": "PROCESSING",
    "created_at": "2024-01-15T10:00:00Z"
  }
}

Example 2: USDG → USD (Rule-based, External to Bank)

Use the Create Orchestration Rule endpoint to automatically convert external USDG deposits to USD and withdraw to a bank account. You’ll need a bank_account_id from creating a fiat account:

Show Request

curl -X POST 'https://api.paxos.com/v2/orchestration/rules' \
  -H 'Authorization: Bearer {access_token}' \
  -H 'Content-Type: application/json' \
  -d '{
    "ref_id": "redeem_usdg_usd_rule",
    "nickname": "Auto Redeem USDG to Bank",
    "profile_id": "{profile_id}",
    "source_asset": "USDG",
    "destination_asset": "USD",
    "source": {
      "crypto": {
        "network": "ETHEREUM"
      }
    },
    "destination": {
      "fiat": {
        "bank_account_id": "{bank_account_id}",
        "memo": "Auto redemption"
      }
    }
  }'

Show Response

{
  "rule": {
    "id": "rule_321mno",
    "ref_id": "redeem_usdg_usd_rule",
    "nickname": "Auto Redeem USDG to Bank",
    "profile_id": "{profile_id}",
    "source_asset": "USDG",
    "destination_asset": "USD",
    "source": {
      "crypto": {
        "address_id": "addr_456def",
        "address": "0x1A2B3C4D5E6F7G8H9I0J1K2L3M4N5O6P7Q8R9S0T",
        "network": "ETHEREUM"
      }
    },
    "destination": {
      "fiat": {
        "fiat_account_id": "{bank_account_id}",
        "memo": "Auto redemption"
      }
    },
    "status": "ACTIVE",
    "created_at": "2024-01-15T10:00:00Z"
  }
}

How It Works

Ad-hoc Redemptions

Call the API: Create an orchestration specifying source stablecoin and destination bank account
Validation: Paxos validates the request, available balance, and bank account status
Conversion: Stablecoins are converted to USD
Withdrawal: USD is sent to the specified bank account via wire transfer
Monitor Status: Track your orchestration progress using webhooks or API polling

Rule-based Redemptions

Create the Rule: Set up an orchestration rule for automatic redemption
Get Deposit Address: Use the address returned in the rule’s source.crypto.address field
Receive Deposit: External USDG arrives at your Paxos crypto address
Automatic Trigger: The rule detects the deposit and initiates redemption
Conversion: USDG is converted to USD
Withdrawal: USD is sent to the specified bank account
Monitor Status: Track your orchestration progress using webhooks or API polling

Prerequisites

Bank Account: Must have an approved bank account added via Create Fiat Account
Account Status: Verify account is APPROVED using Get Fiat Account

Next Steps

Learn about minting stablecoins from USD deposits
Explore conversions between different stablecoins

Get Started

Identity

Stablecoin Orchestration

Stablecoin Operations

Fiat Transfers

Stablecoin Payments

Settlements

Crypto Brokerage

Webhooks

Additional Guides

Versioning

Overview

Redeem Flow Options

Creating Redemptions

Example 1: USDC → USD (Ad-hoc, Profile to Bank)

Example 2: USDG → USD (Rule-based, External to Bank)

How It Works

Ad-hoc Redemptions

Rule-based Redemptions

Prerequisites

Next Steps

Get Started

Identity

Stablecoin Orchestration

Stablecoin Operations

Fiat Transfers

Stablecoin Payments

Settlements

Crypto Brokerage

Webhooks

Additional Guides

Versioning

​Overview

​Redeem Flow Options

​Creating Redemptions

​Example 1: USDC → USD (Ad-hoc, Profile to Bank)

​Example 2: USDG → USD (Rule-based, External to Bank)

​How It Works

​Ad-hoc Redemptions

​Rule-based Redemptions

​Prerequisites

​Next Steps

Overview

Redeem Flow Options

Creating Redemptions

Example 1: USDC → USD (Ad-hoc, Profile to Bank)

Example 2: USDG → USD (Rule-based, External to Bank)

How It Works

Ad-hoc Redemptions

Rule-based Redemptions

Prerequisites

Next Steps