[Glossary](https://blnkfinance.com/glossary) Mint and burn # What is mint and burn? Mint and burn Minting creates new stablecoin tokens against collateral. Burning destroys tokens when someone redeems. Issuers do that. If you are not the issuer, you receive and send existing tokens. Your ledger still records those movements. Calling a customer credit a “mint” hides that you did not create supply. ## How does mint and burn work? An issuer takes a dollar (or other collateral), locks it, and mints a token. On redeem, they burn the token and release the dollar. That pair keeps the peg, if the reserves are real. Your app sees a chain transfer either way. ## Mint vs a ledger credit A ledger credit creates an obligation on your book. A mint creates tokens on a chain. If you credit a wallet because you received USDC, that is a deposit, not a mint. If you are the issuer, the mint and the reserve movement are two posts: one on-chain inventory, one cash or treasury. ## What if you wrap or issue internally? An internal IOU that you call a token is a wallet credit. Keep it in fiat or a named unit. Do not use mint language unless you actually issue on a chain. ## How it works with Blnk If you only accept and send stablecoins, post deposits and payouts against a chain pot. If you issue, post the reserve movement and the token inventory as two transactions with a shared reference. Related terms - [Stablecoin](https://blnkfinance.com/glossary/stablecoin) - [Transaction](https://blnkfinance.com/glossary/transaction) - [Balance](https://blnkfinance.com/glossary/balance) - [Ledger](https://blnkfinance.com/glossary/ledger) - [Precision](https://blnkfinance.com/glossary/precision)