Provenance Blockchain is a public, proof-of-stake Layer 1 blockchain designed for the financial services industry, enabling real-world assets to be managed, traded, and securitized on-chain. It provides a suite of tools for asset origination, management, and exchange while aiming to maintain transparency, security, and regulatory compliance. ^[1]

Overview

Provenance Blockchain is an open-source, public network built with the Cosmos SDK and the CometBFT consensus engine to support financial services applications. It provides a decentralized infrastructure for recording transactions, verifying asset ownership, and enabling asset exchange directly on-chain. The platform's architecture integrates three primary functions into a single system: it serves as an immutable ledger for all financial transactions, acts as a registry for managing digital financial asset ownership, and includes a built-in exchange to support tokenization, transparent trading, and liquidity across various asset classes. By combining these features, the platform aims to reduce reliance on traditional intermediaries and streamline financial processes. ^[2]

The network operates on the guiding principle of “truth over trust,” which emphasizes the use of distributed and immutable records to ensure verifiable data integrity without the need for third-party validation. The project was initially applied to use cases in loan origination, servicing, and securitization before expanding its scope to accommodate a broader range of financial assets. Unlike many other blockchain platforms that rely on synthetic or wrapped representations of assets, Provenance Blockchain is engineered to manage the authoritative, legal record of real-world assets directly on its ledger. This design is intended to provide a more direct and legally sound foundation for digital asset management and trading within a regulated financial context. ^[2]

Technology

Provenance Blockchain is a public, Layer 1 network that utilizes a Proof-of-Stake (PoS) consensus mechanism to secure its operations. Its technical foundation is built using the Cosmos SDK, a modular framework for developing application-specific blockchains. This allows for a high degree of customization and sovereignty while maintaining interoperability with other blockchains in the Cosmos ecosystem. For consensus, the network employs CometBFT (formerly known as Tendermint), an engine that provides high-performance, consistent, and secure state machine replication. This combination of technologies is designed to deliver the scalability and finality required for financial-grade applications, where transaction speed and immutability are critical. The network's open-source nature allows developers to build and deploy their own financial applications on its infrastructure. ^[2]

Features and Applications

Provenance Blockchain features a suite of integrated applications and protocols designed to form a comprehensive ecosystem for digital financial services. These tools address various stages of the asset lifecycle, from creation and management to trading and secure data handling.

YLDS Stablecoin

YLDS is a yield-bearing stablecoin issued as a digital security on the Provenance Blockchain. Each YLDS token represents a one-to-one interest in a deposit account held at an FDIC-insured U.S. bank and is redeemable for USD plus any accrued interest. The stablecoin is issued by Figure’s Digital Asset Registration and Transfer Agent (DART) and is structured as a tokenized deposit share. Secondary trading of YLDS occurs on Figure Markets’ Alternative Trading System (ATS), a regulated platform that facilitates compliant transactions with direct, on-chain settlement. ^[3]

The design of YLDS aims to merge the security of traditional, insured banking with the efficiency and transparency of blockchain technology. All transfers are recorded on the public ledger, enabling 24/7 settlement at a low cost. By passing through interest earned from the underlying bank deposits, YLDS provides a stable, income-generating on-chain asset. This structure is intended to address limitations of other stablecoins and DeFi protocols by offering yield without exposure to the smart contract and lending risks often associated with decentralized finance. It also makes institutional-grade deposits programmable, allowing developers to build compliant financial products that utilize a stable, interest-bearing asset as collateral or a treasury instrument. ^[3]

DART (Digital Asset Registry Technologies)

Digital Asset Registry Technologies (DART) is a blockchain-based registry on Provenance that records the ownership of notes, liens, and collateral in real time. It is designed to function as a modern replacement for traditional asset registries, such as the MERS eRegistry, by enforcing commercial law rules directly on-chain. This ensures that the rights to digital assets are transacted exclusively within the blockchain environment, which mitigates risks associated with off-chain interests and allows assets to be sold, pledged, or controlled securely. ^[4]

DART operates by monitoring on-chain transactions to provide immediate and accurate updates to the asset registry. This mechanism allows lenders to perfect their interest in a blockchain asset and maintain control without needing to place the asset in a third-party trust. As a universal control platform, DART combines lien and eNote registry functions with the transparency of a distributed ledger. The system is designed to adhere to the safe-harbor control system requirements of the Electronic Signatures in Global and National Commerce Act (ESIGN), the Uniform Electronic Transactions Act (UETA), and the Uniform Commercial Code (UCC). It also supports integration with external systems like Loan Origination Systems (LOS) and eVaults, which helps to streamline asset creation and management. By automating processes and enabling instant settlement, DART aims to reduce the costs and manual reconciliation associated with traditional systems. ^[4]

Asset Manager

Asset Manager is a web-based decentralized application (dApp) on Provenance Blockchain that serves as a primary interface for the origination and lifecycle management of digital assets. It provides issuers with a centralized dashboard to create, track, and manage a variety of assets, including loans, receivables, and both security and non-security tokens. The application integrates with the Asset Origination API, allowing originators to scale their operations through direct system integrations. To maintain confidentiality, the platform uses a hybrid data model where a unique, one-way SHA-2 hash of sensitive data is recorded on-chain for verification, while the underlying private information remains encrypted and stored off-chain. ^[5]

The application supports a range of functions, including asset and token creation, securitization with defined tranche structures and waterfall instructions, token transfers, and bilateral exchanges. Issuers can implement specific rules on their assets, such as requiring transfer approvals or restricting ownership to accredited investors. Asset Manager also integrates with other applications in the ecosystem, allowing for seamless data flow when listing assets on the Marketplace or managing related documents in the Data Room. This comprehensive feature set enables institutions to manage digital assets and conduct complex financial operations within the Provenance ecosystem. ^[5]

Marketplace

The Marketplace is a platform within the Provenance ecosystem for listing and trading tokenized digital assets. The process begins with an issuer defining and creating a digital asset using the Asset Manager dApp or the Asset Origination API. The issuer can then use Figure Marketplace to create a trading venue and list the tokenized security with Figure Securities, a registered broker-dealer, to enable compliant trading. Listings can be customized with specific rules, such as restricting trading to certain investor types or scheduling periodic trading sessions. ^[6]

To participate in the Marketplace, verified entities connect with "passported wallets." To place an offer, a wallet must hold the asset being sold; to place a bid, it must hold tokenized USD. Issuers have the discretion to accept or reject bids. When a bid is accepted, the transaction is executed via a bilateral exchange smart contract, which completes the on-chain transfer of the tokens to the buyer. This integrated structure, supported by tools for asset creation, listing, and trading, provides a transparent process for asset transactions within the ecosystem. ^[6]

Data Room

The Data Room is a secure application on Provenance Blockchain designed for managing sensitive documents off-chain while linking ownership and access rights to on-chain identities. The dApp is available to entities and trusts that have successfully completed a Know Your Business (KYB) verification process, ensuring that only vetted participants can manage and view sensitive files. It provides a platform for users to store, organize, and securely share confidential documents in a controlled environment. ^[7]

The application includes several security features to protect information. Administrators can generate custom access links with granular permissions, allowing for view-only or download rights. The system can also be configured to require viewers to accept a Non-Disclosure Agreement (NDA) before gaining access to files. To deter unauthorized redistribution, any file downloaded from the Data Room is automatically watermarked with the viewer's email address. Access can be dynamically managed, allowing administrators to deactivate links or revoke permissions at any time, providing a compliant solution for controlled document sharing. ^[7]

The Foundry Builder's Program

The Foundry is an incubator and guild established by Provenance Blockchain to support the development of new financial applications on its network. The program is designed to assist founders, engineers, and innovators in building financial tools that leverage core network assets like the HASH token and the YLDS stablecoin. It provides resources and guidance from the initial concept stage through to market launch. Participants gain access to non-dilutive funding through bounties and grants, opportunities to present their projects to venture partners and ecosystem leaders, and direct technical and strategic support from the core engineering team. The program also facilitates ecosystem connections and co-marketing opportunities to help projects integrate and grow. ^[8]

HASH Token

HASH is the native utility and governance token of the Provenance Blockchain. It is integral to the network's operations, security, and economic model.

Utility

The HASH token has four primary functions within the ecosystem:

• Fees: It is used to pay for network transactions and asset settlement.
• Staking: HASH holders can stake their tokens with validators to help secure the network via its Proof-of-Stake consensus mechanism. Staking also allows holders to earn rewards, which helps to offset inflationary dilution.
• Governance: The token is used for on-chain voting, allowing holders to participate in decisions regarding protocol upgrades and parameter changes.
• Auctions: HASH can be used to bid on and purchase assets in the HASH Market auctions. ^[9]

Economic Model

Provenance Blockchain employs a predictable, USD-denominated fee model to eliminate the gas fee volatility common on other networks. Transaction costs are set in USD but paid in HASH, with an oracle providing a dynamic price feed to ensure stable fees. Network fees, such as those for token transfers or asset registrations, are split between network validators (60%) and the HASH Market auction pool (40%). Settlement fees, which are charged for the exchange of assets between parties, are directed entirely to the auction pool. ^[9]

The token's economic engine is designed to balance supply and incentivize participation through three core mechanisms. First, a dynamic inflation model adjusts to target approximately 60% of the total HASH supply being staked. If the staking level falls below this target, the inflation rate increases (up to a maximum of 52.5%) to incentivize more staking; if it is at or above the target, inflation minimizes to 1%. Second, a portion of the HASH supply is allocated for community rewards distributed through the HASH Rank Program, which tracks user participation in activities like staking, governance, and asset transactions. Finally, the HASH Market serves as the network's primary deflationary engine. This decentralized auction platform sells assets collected from network and settlement fees. When participants use HASH to win these auctions, the winning HASH bids are permanently removed from circulation (burned), directly linking network activity to token scarcity. ^[9]

Tokenomics

The HASH token has a total supply of 100,000,000,000. The distribution of the total supply is allocated as follows:

• Investors & Strategic Partners: 28%
• Ecosystem Grants: 28%
• Community: 25%
• DAO Treasury: 11%
• Foundation & Team: 8%

This distribution model allocates significant portions to ecosystem development and community incentives to foster growth and participation on the network. ^{[10] [9]}