Episode Six Launches Verified Backing, Real-Time Confidence for Every Token a Bank Issues

Part of the E6 Token Control Ledger, the capability checks a token's backing before it’s created, and checks that it remains outstanding before redemption.

AUSTIN, Texas--(BUSINESS WIRE)--Episode Six, a leading global technology provider of enterprise-grade card issuing and ledger infrastructure, today announced Verified Backing from the E6 Token Control Ledger™. Verified Backing checks the backing and status of a bank's own tokenized deposits and stablecoins issued through the E6 Token Control Ledger, in real time, when they're created and again when they're redeemed.

For banks moving into tokenized deposits and stablecoins, trust is quickly becoming one of the biggest items on the risk register: how do you know the token redeemed today is genuine and fully backed, and not a counterfeit that found its way into circulation? Verified Backing from the E6 Token Control Ledger helps answer this question by checking tokens issued through the ledger against their recorded backing when they're created, and again at the moment they're redeemed, to help reduce the risk of loss. Traditional reconciliation looks backward, assessing a bank’s position after the fact. Verified Backing runs at issuance and redemption, at the two moments that matter most.

“For risk and compliance teams, the hardest question in tokenized money isn’t whether a token was genuine when it was created. It’s whether it’s still genuine by the time it’s redeemed,” said Daryn Griggs, Episode Six’s Managing Director of APAC. “Verified Backing gives a bank a real-time check on tokens issued through the E6 Token Control Ledger, helping it confirm that a token presented for redemption remains outstanding and has backing recorded for it.”

Verified Backing works the way card payments evolved from magstripe to EMV chip and pin: a static swipe that couldn’t tell a genuine card from a copy gave way to a dynamic check at the moment of the transaction. Verified Backing brings that same shift to tokenized money. When a bank creates and issues a tokenized deposit or a stablecoin, Verified Backing confirms the backing is there first. When that token is redeemed, it confirms the token is genuine and still outstanding before any cash is released, regardless of how many wallets or chains it passed through in between. It runs bank-side, inside the E6 Token Control Ledger, and applies to any token a bank issues itself.

“Tokenized money is only going to become a bigger part of how banks operate, and trust in what’s actually in circulation has to scale right alongside it,” said John Mitchell, CEO and Co-Founder of Episode Six. “Verified Backing is the natural next layer of the E6 Token Control Ledger: the same system of record that lets a bank issue and manage tokenized money on its own operating model now gives it a real-time check on supported tokens issued through the ledger. This is the kind of infrastructure the next decade of banking will be built on.”

Verified Backing is available now as part of the E6 Token Control Ledger for Episode Six’s customers globally across markets where Episode Six operates.

About Episode Six

Episode Six is The World’s Local Processor®. As a global provider of enterprise-grade card issuing and ledger infrastructure for financial technology companies, banks, and brands, Episode Six delivers the innovative capabilities needed to compete with disruptors and lead the market. Flexibility, adaptability, and resilience are built into the core of Episode Six’s platform, ensuring clients maintain a market-leading position. Episode Six operates in over 50 countries, powering millions of accounts and billions in payments globally, with an expanding team located in the US, Canada, UK, Europe, Japan, Singapore, Hong Kong, Australia, and India. Investors include HSBC, Mastercard, SBI Investment Co Ltd, Anthos Capital, Avenir, and Japan Airlines.