CASH, also known as Phantom CASH, is a decentralized, over-collateralized stablecoin pegged to the U.S. dollar. It operates natively on the Solana blockchain and is designed for deep integration within the Phantom wallet ecosystem. The primary objective of CASH is to provide a stable, secure, and user-friendly digital dollar that can be seamlessly used for decentralized finance (DeFi), peer-to-peer payments, and as a reliable store of value. The project was designed by the team behind Phantom, the leading self-custodial wallet on Solana, to address the need for a more decentralized and integrated stablecoin, reducing reliance on centralized issuers and improving the user experience for millions of crypto participants. ^{[1] [2]}​

Overview and Mechanism

CASH is engineered to maintain a stable value, closely tracking the price of the U.S. dollar. Its stability is not derived from holding fiat currency in a bank account but from a decentralized system of over-collateralization, managed by smart contracts on the Solana network.

Peg Stability and Over-Collateralization

The core of CASH's stability mechanism is over-collateralization. This means that for every 1 CASH in circulation, there is more than $1 worth of volatile crypto assets locked away as collateral in the protocol's smart contracts. This excess collateral acts as a buffer, absorbing the price fluctuations of the underlying assets (like SOL) and ensuring that the value backing the stablecoin remains sufficient even during periods of high market volatility. The system constantly monitors the value of the locked collateral. If the value of the collateral drops and approaches a predetermined threshold, the system automatically triggers a liquidation process to protect the peg and ensure the solvency of the entire system. ^[1]​

Collateralized Debt Positions (CDPs)

Users interact with the CASH protocol through Collateralized Debt Positions (CDPs), which are often referred to as "vaults." A CDP is a smart contract where a user locks their collateral to mint new CASH tokens. This process creates a loan, with the locked crypto asset serving as collateral and the newly minted CASH serving as the debt. ^[1]​

Key concepts associated with CDPs include:

• Collateralization Ratio: This is the ratio of the value of the locked collateral to the value of the minted CASH. For example, a 150% collateralization ratio means a user must deposit at least $150 worth of SOL to mint 100 CASH. The protocol requires users to maintain a minimum collateralization ratio to ensure the system remains over-collateralized.
• Liquidation: If the value of a user's collateral falls below the minimum required ratio due to market price drops, their CDP becomes eligible for liquidation. In a liquidation event, the protocol seizes the collateral, sells it on the open market to repay the user's CASH debt, and returns any remaining collateral to the user after deducting a penalty fee. This automated process is crucial for removing under-collateralized debt and maintaining the stablecoin's 1:1 USD backing.

The functionality and security of the CDP system rely on a robust economic model where liquidators are incentivized to monitor the health of vaults and trigger liquidations when necessary, ensuring the protocol remains solvent without reliance on a central operator. ^[1]​

Minting and Burning Process

The supply of CASH is dynamic and entirely controlled by user actions, ensuring that every token in circulation is fully backed.

• Minting: To create new CASH, a user first deposits an approved volatile asset, such as SOL, into a CDP or vault. Based on the value of their deposit and the required collateralization ratio, the user can then mint a corresponding amount of CASH. This newly created CASH is sent to their wallet and can be used across the DeFi ecosystem.
• Burning: To reclaim their locked collateral, the user must repay the CASH they originally minted, plus any accrued stability fees. When the user repays the debt, the protocol "burns" or permanently destroys that amount of CASH, removing it from circulation. Once the debt is cleared, the user can withdraw their collateral from the vault.

This mint-and-burn mechanism ensures that the supply of CASH directly corresponds to the amount of locked collateral, maintaining the integrity of the system. ^[1]​

History and Development

CASH was officially announced on September 30, 2025, by the team at Phantom. The motivation behind its creation stemmed from the desire to provide Phantom's large user base with a native, decentralized stablecoin that offered a superior user experience compared to existing options. By developing their own stablecoin, the Phantom team aimed to reduce the ecosystem's dependence on centralized stablecoin issuers like Circle (USDC) and Tether (USDT), which carry custodial and regulatory risks. ^{[2] [1]}​

For its launch, Phantom collaborated with Bridge and Stripe to utilize an "Open Issuance" framework. This partnership was highlighted during a presentation by Phantom's Brandon Millman at the Stripe Tour New York keynote on October 14, 2025, where he demonstrated Stripe merchant acceptance for CASH payments. This collaboration signals an intent to bridge the gap between the crypto-native economy and traditional finance, enabling real-world utility from day one. The stablecoin officially began trading on Solana-based decentralized exchanges around October 24-25, 2025. ^{[2] [1]}​

Phantom Wallet Integration

A defining feature of CASH is its deep, native integration into the Phantom wallet, which is designed to abstract away complexities and make using a stablecoin intuitive for both new and experienced users.

CashSwap Feature

To facilitate easy access to CASH, Phantom has integrated a feature known as CashSwap directly within the wallet. This tool allows users to swap other stablecoins, such as USDC, for CASH with minimal friction. The integration aims to offer low-slippage, potentially gas-less transactions for these swaps, removing a significant barrier to entry for users who want to start using CASH. By simplifying the acquisition process, Phantom encourages the adoption of its native stablecoin for daily transactions and DeFi activities. ^[1]​

Enhanced User Experience

The integration goes beyond simple swaps. Phantom's interface is designed to prioritize CASH, potentially offering features like one-click minting from locked SOL, simplified debt management for CDPs, and clear, real-time tracking of collateralization ratios. This focus on user experience is central to CASH's strategy, aiming to make the process of using a decentralized stablecoin as easy as using a traditional payment app. ^[1]​

Technology

CASH is built on a robust and transparent technological foundation designed for security, scalability, and decentralization.

Blockchain

CASH operates on the Solana network. This choice leverages Solana's high throughput, low transaction fees, and fast finality, making CASH suitable for high-frequency trading, payments, and other applications where speed and cost are critical factors. The network's ability to process tens of thousands of transactions per second with near-instant confirmation provides a user experience essential for payment applications. ^[1]​

Protocol and Security

The stablecoin is governed by a decentralized protocol built on smart contracts. This protocol manages all core functions, including the creation of CDPs, the minting and burning of CASH, the monitoring of collateral levels, and the execution of liquidations. The security of the system is reinforced through rigorous smart contract audits by third-party firms to mitigate potential vulnerabilities. ^[1]​

To accurately price the collateral assets in its vaults, the CASH protocol relies on decentralized oracle networks. On October 7, 2025, the Pyth Network announced its price feed for CASH was live and available across more than 100 blockchains. This integration is vital for providing reliable, real-time market data to the smart contracts, preventing price manipulation, and ensuring timely liquidations. ^[2]​

Ecosystem and Use Cases

Since its launch, CASH has seen rapid integration into the Solana ecosystem, serving multiple functions for users and developers.

Decentralized Finance (DeFi)

CASH is designed to be a fundamental building block in Solana's DeFi landscape. Its primary use cases include:

• Lending and Borrowing: Users can supply CASH to lending protocols to earn yield. Shortly after launch, the DeFi protocol Kamino Finance introduced a CASH lending vault, launching significant incentive programs in October 2025 that offered over $200,000 in rewards to attract liquidity.
• Trading and Liquidity: CASH serves as a stable trading pair on decentralized exchanges (DEXs), allowing traders to move in and out of volatile positions without leaving the crypto ecosystem. It is also used to provide liquidity in pools, such as CASH/USDC, enabling users to earn trading fees.
• Store of Value: For crypto users looking to hedge against market volatility, CASH provides a stable asset to hold funds. Its decentralized nature offers an alternative to centralized stablecoins, which may be subject to censorship or asset freezes.

These DeFi integrations were a key part of the stablecoin's initial rollout strategy, aiming to establish deep liquidity and utility from its inception. ^{[2] [1]}​

Payments and Real-World Utility

A key goal for CASH is to extend beyond DeFi and into everyday commerce. The partnership with Stripe for merchant acceptance is a significant step in this direction, allowing online businesses to accept CASH as a form of payment. Furthermore, plans for a stablecoin-backed debit card, mentioned by Phantom's Brandon Millman, would allow users to spend their CASH holdings at any merchant that accepts traditional card payments, seamlessly bridging the digital and physical worlds. ^[2]​

Comparison with Other Stablecoins

CASH enters a competitive market but offers a distinct value proposition compared to other leading stablecoins.

vs. Centralized Stablecoins (USDC, USDT)

The primary difference is the backing mechanism and trust model. While USDC and USDT are backed by reserves of fiat currency and other assets held by a central entity, CASH is backed by a transparent, on-chain portfolio of crypto assets. This decentralized model reduces counterparty risk and censorship risk, as no single entity controls the issuance or the underlying collateral. The health and collateralization of the entire CASH system can be verified on-chain by anyone at any time, offering a higher degree of transparency. ^[1]​

vs. Other Decentralized Stablecoins (DAI)

CASH shares a similar over-collateralized model with stablecoins like MakerDAO's DAI. However, its key differentiators are its native home on the high-performance Solana blockchain and its unparalleled integration with the Phantom wallet. Operating on Solana provides significant performance and cost advantages over DAI, which is primarily based on the more expensive and slower Ethereum network. This tight coupling of wallet and protocol is designed to create a more streamlined and accessible user experience than what is typically found with other decentralized stablecoins, potentially driving faster and broader adoption within its target ecosystem. ^[1]​