The issuance process is **managed by the Universal network** but can only be **initiated by a Merchant**. Each token issued is **fully collateralized** by its respective underlying asset. Additionally, Universal tokens can only be minted to **whitelisted destination addresses** of authorized Merchants.
#### **Sequence of Events for uAsset Issuance:**
1. **Merchant Initiation:**\
The Merchant initiates the issuance process by sending a transaction to the Universal token contract. This transaction **signals intent** to issue Universal tokens, backed by an equivalent amount of the underlying asset.
2. **Asset Transfer to Custodian:**
* The Merchant specifies the **blockchain and recipient address** where they wish to receive the minted Universal tokens.
* The Merchant **transfers the corresponding underlying assets** to the designated Custodian.
* The deposited assets must match the exact value of the Universal tokens being requested for issuance.
3. **Verification and Minting:**
* The Universal network **validates the received assets** to ensure they match the requested issuance amount.
* Once successfully verified, the network **executes a minting transaction**, creating the specified number of Universal tokens.
* The newly minted tokens are then sent to the **Merchant’s designated address** on their specified blockchain.
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