Abstract
Ohanae Coin (OUSD) is a USD-pegged, yield-retaining Covered Stablecoin issued by Ohanae Securities LLC, a wholly owned subsidiary of Ohanae, Inc., on the Ohanae blockchain. Designed for compliant settlement of equity tokens in a non-Reg NMS OTC Market, OUSD is backed 1:1 by USD reserves held in a Special Reserve Account (SRA) for the Exclusive Benefit of Customers. It is programmable, KYC-restricted, and yield is retained to enhance reserve strength, eliminating any expectation of profit for holders.
OUSD underpins Ohanae's Equity Token Offering (ETO) and Hybrid Automated Market-Making (AMM) Settlement Model, where Ohanae Securities acts as a principal dealer executing trades against its own account. Other broker-dealers may serve as passive liquidity providers without interacting with a central order book. OUSD represents a secure, regulated, and blockchain-native alternative for settlement in tokenized capital markets.
Commercial Bank Money, Reimagined for Secure Digital Settlement
Ohanae Coin ("OUSD"), commercially branded as a Deposit Coin for Payment, is a USD-pegged crypto asset issued by Ohanae Securities LLC on the Ohanae blockchain. It functions as a Covered Stablecoin under U.S. securities laws, acting as a cash equivalent for settling trades in equity tokens and other digital asset securities within a compliant, non-Reg NMS OTC Market.
OUSD represents a stable form of tokenized commercial bank money, backed 1:1 by U.S. dollar reserves. These reserves are held in a Special Reserve Account for the Exclusive Benefit of Customers ("SRA"), maintained by a regulated trust partner. The funds are not co-mingled with broker-dealer proprietary assets and are subject to custodial oversight and reporting obligations consistent with SEC Rule 15c3-3.
Unlike public stablecoins such as USDC, OUSD is restricted to the Ohanae platform and requires verified identity (Ohanae ID) for access. It does not distribute interest or yield to holders; instead, all yield generated on reserve assets is retained in the SRA to enhance reserve backing. This structure eliminates any reasonable expectation of profit by the holder, supporting its treatment as a Covered Stablecoin rather than an investment contract under the Howey test.
Features and Use Cases of OUSD
- Settlement Token: OUSD facilitates instant, atomic settlement of equity token transactions across the Ohanae platform, enabling efficient delivery-versus-payment (DVP) without intermediaries.
- Programmability: OUSD is programmable and supports Web3-native functions, including smart contracts, automated compliance, and transaction transparency.
- KYC-Only Access: Access to OUSD requires verified identity through Ohanae ID, reducing illicit finance risk and aligning with BSA/AML compliance obligations.
- Stable and Protected: The OUSD supply is always backed by reserves held in regulated banks and trust partners. Minting and burning are governed by a strict reserve formula:
- OUSD Reserve Formula: Special Reserve Account balance + Bridge Account balances in multiple banks ≥ Total OUSD minted on the Ohanae blockchain
- Fee-Free Transfers: OUSD enables transfers within the Ohanae ecosystem without wire or ACH fees. Bank withdrawal costs may be absorbed by Ohanae Securities for end-user convenience.
Special Reserve Account Mechanics
The Special Reserve Account (SRA) is central to protecting OUSD holders and is structured in compliance with SEC customer protection rules. Key features include:
- Segregation of Funds: All customer assets are separated from firm proprietary funds.
- Multi-Bank Diversification: Deposits are spread in $250,000 tranches across FDIC-insured banks to maximize insurance coverage.
- Independent Attestation: Subject to regular third-party attestations and internal audits.
- Real-Time Reconciliation: Daily checks ensure that reserve balances always match or exceed the total circulating OUSD.
Users may fund their account by debit/credit card or wire transfer. Based on the OUSD Reserve Formula, new tokens are minted and delivered to the user's Ohanae Wallet. For redemptions, the reverse applies—OUSD is burned and the USD is returned.
Regulatory Positioning
According to the April 4, 2025 SEC Statement on Stablecoins, OUSD is treated as a crypto asset—not a fiat deposit or money market fund share. It qualifies as a Covered Stablecoin because of its legal wrapper, full reserve backing, yield retention, and non-investment use case as a payment and settlement tool.
Ohanae Securities LLC, pending FINRA approval of its Special Purpose Broker-Dealer (SPBD) license, is the sole issuer and custodian of OUSD, operating exclusively within the Ohanae blockchain environment. This closed-loop infrastructure avoids reliance on public blockchain protocols, ensuring regulatory compliance and investor protection.
Hybrid AMM Settlement Model: Principal Dealer Execution
OUSD is foundational to Ohanae's Hybrid Automated Market-Making (AMM) Settlement Model, designed for SPBD-only compliance:
- Principal Dealer Role: Ohanae Securities acts as a principal dealer, executing trades in equity tokens and OUSD against its own account.
- No Central Order Book: The platform does not maintain a central order book or continuous quotation system, reducing regulatory risk under ATS rules.
- Passive Liquidity Providers: Third-party broker-dealers may serve as liquidity providers by supplying capital into AMM pools, without active market-making or negotiation.
- Non-Reg NMS OTC Market: The system operates fully outside Reg NMS and avoids triggering exchange registration, leveraging SEC guidance for SPBD entities.
This model enables compliant execution of digital asset securities trades while maintaining the flexibility and efficiency of AMM technology.
Conclusion
OUSD represents a breakthrough in stablecoin design for regulated digital capital markets. It merges the trust of commercial bank money with the security and functionality of blockchain infrastructure.
By eliminating profit expectation, ensuring 1:1 reserve backing, and operating within a closed-loop, KYC-only environment, OUSD may serve as the template for compliant crypto-native payment and settlement systems.
Integrated into a Hybrid AMM Settlement Model with principal-based execution, Ohanae Securities offers a legally robust alternative to traditional market structures—purpose-built for a tokenized future.
Disclaimer
Ohanae Securities LLC is a subsidiary of Ohanae, Inc. and member of FINRA/SIPC. Additional information about Ohanae Securities LLC can be found on BrokerCheck. Ohanae Securities LLC is in discussions with FINRA about exploring the expansion of business lines for the broker/dealer. Any statements regarding abilities of Ohanae Securities LLC are subject to FINRA approval and there are no guarantees FINRA will approve the broker/dealer's expansion.
Ohanae Securities is seeking approval to be a special purpose broker-dealer that is performing the full set of broker-dealer functions with respect to digital asset securities – including maintaining custody of these assets – in a manner that addresses the unique attributes of digital asset securities and minimizes risk to investors and other market participants. If approved, Ohanae Securities will limit its business to crypto asset securities to isolate risk and having policies and procedures to, among other things, assess a given crypto asset security's distributed ledger technology and protect the private keys necessary to transfer the crypto asset security.