smom-dbis-138/docs/tokenization/ARCHITECTURE.md

Tokenization Architecture Documentation

Overview

The tokenization system enables central banks and IFIs to tokenize traditional assets (EUR, USD, etc.) using the Hyperledger stack, with integration across SolaceNet, Sub-Volumes A/B/C, and all existing microservices.

Architecture Diagram

graph TB
    subgraph traditional[Traditional Banking]
        SWIFT[SWIFT]
        TARGET2[TARGET2]
        CORE[Core Banking]
    end
    
    subgraph hyperledger[Hyperledger Stack]
        FABRIC[Fabric Chaincode]
        BESU[Besu ERC-20]
        FIREFLY[FireFly Orchestration]
        CACTI[Cacti Bridges]
        INDY[Indy Identity]
    end
    
    subgraph solacenet[SolaceNet]
        CAP[Capability Registry]
        POL[Policy Engine]
        ENT[Entitlements]
    end
    
    subgraph subvolumes[Sub-Volumes]
        GAS[GAS Network]
        GRU[GRU Monetary]
        METAVERSE[Metaverse]
    end
    
    subgraph microservices[Microservices]
        ISO[ISO Currency]
        LIQ[Liquidity Engine]
        MRKT[Market Reporting]
        BRIDGE[Bridge Reserve]
    end
    
    traditional --> FIREFLY
    FIREFLY --> FABRIC
    FIREFLY --> BESU
    FABRIC <--> CACTI
    BESU <--> CACTI
    CACTI --> traditional
    FIREFLY --> SOLACENET
    SOLACENET --> CAP
    SOLACENET --> POL
    SOLACENET --> ENT
    BESU --> GAS
    BESU --> GRU
    BESU --> METAVERSE
    BESU --> ISO
    BESU --> LIQ
    BESU --> MRKT
    BESU --> BRIDGE
    INDY --> SOLACENET

Component Details

1. Fabric Chaincode

Location: chaincode/tokenized-asset/go/ and chaincode/reserve-manager/go/

Responsibilities:

• Core settlement layer for tokenized assets
• Reserve verification and management
• 1:1 backing enforcement
• Regulatory compliance checks

Key Functions:

• MintToken: Mint tokenized assets with reserve verification
• TransferToken: Transfer with regulatory checks
• RedeemToken: Redeem back to underlying asset
• VerifyReserve: Verify reserve sufficiency
• Enforce1To1Backing: Ensure 1:1 backing ratio

2. Besu ERC-20 Contracts

Location: contracts/tokenization/

Contracts:

• TokenizedEUR.sol: ERC-20 tokenized EUR
• TokenRegistry.sol: Registry of all tokenized assets

Features:

• ERC-20 compatibility
• Fabric attestation-based minting
• Integration with bridge system
• Metadata storage

3. FireFly Orchestration

Location: orchestration/tokenization/

Services:

• tokenization-workflow.ts: Main workflow orchestrator
• settlement-generator.ts: Settlement file generation

Workflow States:

1. INITIATED
2. RESERVE_VERIFIED
3. FABRIC_MINTING
4. FABRIC_MINTED
5. BESU_MINTING
6. BESU_MINTED
7. SETTLEMENT_CONFIRMED
8. REGULATORY_REPORTED
9. COMPLETED

4. Cacti Integration

Location: connectors/cacti-fabric/ and connectors/cacti-banking/

Bridges:

• Fabric-Besu Bridge: Atomic cross-network transfers
• Banking Bridge: SWIFT/TARGET2 integration

5. SolaceNet Integration

Location: dbis_core/src/core/solacenet/capabilities/tokenization/

Capabilities:

• tokenization.mint: Mint tokenized assets
• tokenization.transfer: Transfer tokenized assets
• tokenization.redeem: Redeem tokenized assets
• tokenization.view: View tokenized assets

Policy Enforcement:

• Tier-based access control
• Entitlement checks
• Runtime capability toggling

6. Sub-Volume Integration

GAS Network (Sub-Volume A)

• Atomic settlement for tokenized assets
• Multi-dimensional commit verification
• Finality confirmation

GRU (Sub-Volume B)

• Tokenized asset valuation via XAU triangulation
• GRU settlement pipeline integration
• FX rate integration

Metaverse (Sub-Volume C)

• Virtual asset representation
• Cross-reality token transfers
• Digital-physical bridges

7. Microservices Integration

ISO Currency Service

• Tokenized asset currency code mapping
• Exchange rate integration
• Currency registry support

Liquidity Engine

• Tokenized asset liquidity management
• Reserve pool management
• Bridge liquidity integration

Market Reporting

• Tokenized asset reporting
• Reserve attestation reporting
• Regulatory compliance reporting

Bridge Reserve

• Tokenized asset reserves for bridging
• Cross-chain tokenized asset transfers
• Reserve verification

8. Indy Identity

Location: services/identity/

Services:

• institutional-identity.ts: DID issuance and VC management
• credential-verifier.ts: Credential verification for operations

Credential Types:

• KYC
• AML
• RegulatoryApproval
• BankLicense

Data Flow

Tokenization Flow

1. Reserve Verification (Traditional Banking)
   ↓
2. FireFly Initiates Workflow
   ↓
3. SolaceNet Capability Check
   ↓
4. Indy Credential Verification
   ↓
5. Fabric Mint (Chaincode)
   ↓
6. Cacti Bridge to Besu
   ↓
7. Besu ERC-20 Mint
   ↓
8. Settlement File Generation
   ↓
9. SWIFT/TARGET2 Submission
   ↓
10. Regulatory Reporting
   ↓
11. Completion

Transfer Flow

1. User Initiates Transfer
   ↓
2. SolaceNet Capability Check
   ↓
3. Indy Credential Check
   ↓
4. Bridge Reserve Verification
   ↓
5. Execute Transfer (Besu)
   ↓
6. Update Fabric State (if needed)
   ↓
7. Settlement Confirmation

Redemption Flow

1. User Initiates Redemption
   ↓
2. SolaceNet Capability Check
   ↓
3. Reserve Verification
   ↓
4. Burn on Besu
   ↓
5. Redeem on Fabric
   ↓
6. Release Reserve
   ↓
7. Settlement Confirmation

Security Model

HSM Integration

• Minting authority requires HSM signatures
• Reserve attestation requires HSM signatures
• Critical operations use EIP-712 typed data

Multi-Attestor Quorum

• Reserve verification requires multiple attestors
• Configurable quorum thresholds
• Weighted attestor system

SolaceNet Policy Enforcement

• Runtime capability checks
• Tier-based access control
• Policy-based route selection

Indy Credential Verification

• DID-based identity
• Verifiable Credentials for compliance
• Tier-based eligibility

Integration Points

1. SolaceNet: Capability toggling, policy enforcement, entitlements
2. GAS Network: Atomic settlement
3. GRU: Monetary system integration, FX rates
4. Metaverse: Virtual asset representation
5. Bridge System: Cross-chain tokenized asset transfers
6. Microservices: ISO Currency, Liquidity, Market Reporting, Bridge Reserve
7. Indy: Institutional identity and credentials
8. FireFly: Workflow orchestration
9. Cacti: Cross-network bridges
10. Fabric: Core settlement layer

Deployment Architecture

┌─────────────────────────────────────┐
│   Traditional Banking Systems       │
│   (SWIFT, TARGET2, Core Banking)    │
└──────────────┬──────────────────────┘
               │
┌──────────────▼──────────────────────┐
│   Hyperledger FireFly                │
│   (Orchestration & API Layer)       │
└──────┬───────────────┬───────────────┘
       │               │
┌──────▼──────┐  ┌────▼──────────────┐
│  Fabric     │  │  Besu             │
│  (Settlement│  │  (ERC-20 Tokens)  │
│   Chaincode)│  │                   │
└──────┬──────┘  └────┬──────────────┘
       │               │
       └───────┬───────┘
               │
       ┌───────▼───────┐
       │  Hyperledger  │
       │  Cacti        │
       │  (Bridge)     │
       └───────┬───────┘
               │
       ┌───────▼───────┐
       │  SolaceNet    │
       │  (Capabilities│
       │   & Policy)   │
       └───────┬───────┘
               │
       ┌───────▼───────┐
       │  Sub-Volumes  │
       │  (GAS/GRU/    │
       │   Metaverse)  │
       └───────────────┘

API Endpoints

SolaceNet Tokenization API

• POST /api/v1/solacenet/tokenization/mint - Mint tokenized asset
• POST /api/v1/solacenet/tokenization/transfer - Transfer tokenized asset
• POST /api/v1/solacenet/tokenization/redeem - Redeem tokenized asset
• GET /api/v1/solacenet/tokenization/status/:requestId - Get status
• GET /api/v1/solacenet/tokenization/token/:tokenId - Get token details

FireFly Tokenization API

• POST /api/tokenization/mint - Initiate minting workflow
• POST /api/tokenization/transfer - Initiate transfer workflow
• POST /api/tokenization/redeem - Initiate redemption workflow
• GET /api/tokenization/status/:requestId - Get workflow status

Configuration

Environment Variables

• FABRIC_NETWORK - Fabric network name
• CHAIN_138_RPC_URL - Besu RPC URL
• FIREFLY_API_URL - FireFly API URL
• CACTI_API_URL - Cacti API URL
• INDY_API_URL - Indy API URL
• SWIFT_API_URL - SWIFT API URL (optional)
• TARGET2_API_URL - TARGET2 API URL (optional)

Security Considerations

1. HSM Integration: All critical operations require HSM signatures
2. Multi-Attestor Quorum: Reserve verification requires quorum
3. SolaceNet Policy: Runtime policy enforcement
4. Indy Credentials: Verifiable Credentials for compliance
5. Access Control: Role-based access control
6. Audit Trail: Comprehensive logging via SolaceNet audit logs

Success Criteria

• Tokenized assets can be minted on Fabric
• ERC-20 representation on Besu
• SolaceNet capability checks enforced
• Integration with all microservices
• Sub-Volume A/B/C integration working
• End-to-end settlement file generation
• Regulatory compliance maintained
• Dual-record keeping (DLT + traditional banking)