Understanding On-Hold Balances for Third-Party MXN Deposits

On-Hold MXNB Balance

The Juno Platform facilitates the transfer and minting of MXNB, a stablecoin pegged 1:1 to the Mexican Peso. When a user receives MXN from a third-party deposit through its NVIO account for an issuance, the process involves a MXN transfer and minting:

• Third-Party MXN Deposit (Juno): The user receives MXN from a third party in their NVIO account.
• Transfer to Settlement Account: This MXN is transferred from the user’s NVIO account to Juno’s settlement account in NVIO.
• MXNB Minting: MXNB (Juno's stablecoin) is then minted, representing the equivalent value of the received MXN.
• MXNB Withdrawal to User Account: The minted MXNB is subsequently withdrawn to the user's Bitso account.

How the On-Hold Logic Applies

Juno applies a temporary hold on newly minted MXNB when the tokens are issued for the benefit of newly onboarded end users of its clients.

Subsequent Deposits from the Same Depositor

An important consideration for on-hold balances is the source of subsequent deposits:

• After 24-hour window: If the same depositor makes another deposit after the initial 24-hour hold period has expired for their previous deposit, this new deposit will generally not be placed on-hold. The system learns and trusts the depositor after the initial vetting period.
• New Depositor: If a deposit comes from a different third party, the entire on-hold process (including the 24-hour window) will be initiated again for that new deposit. Each new third-party source triggers the security protocol.