Use cases

AMP2 supports a range of tokenization scenarios on Liquid. Each maps to specific capabilities: issuance, restrictions, lifecycle operations, and monitoring.

Security Token Offerings (STOs)

A regulated issuer creates a security token representing equity, fund shares, or other investment instruments. Investor participation is restricted to verified parties.

How AMP2 supports this:

• Issue the asset with contract metadata (name, ticker, domain, issuer pubkey) embedded on chain.
• Register each verified investor's wallet descriptor and assign it to a restriction group.
• Set useToWhitelist: true on the restriction group so the HSM only cosigns transfers to approved wallets.
• When an investor sells to another investor, the issuer (or proxy) initiates the transfer. The HSM enforces that the destination is whitelisted before cosigning.
• Use lock/unlock to freeze an asset during corporate actions or regulatory holds.

Key capabilities used: issuance, wallet registration, restriction whitelists, PSET cosigning, lock/unlock.

Stablecoins

A stablecoin issuer mints tokens pegged to a fiat currency. Supply must be adjustable as reserves change. New tokens are minted when deposits come in, and existing tokens are burned on redemption.

How AMP2 supports this:

• Issue the asset with a reissuance token (set satoshi_token > 0) to enable future supply increases.
• When new reserves are added, call the reissue endpoint to mint additional supply.
• When users redeem, call the burn endpoint to permanently destroy tokens.
• Monitor total supply across wallets using balance and UTXO endpoints.
• Set canBurn: true on restriction groups for wallets that should be able to initiate burns.

Key capabilities used: issuance with reissuance tokens, reissue, burn, balance monitoring.

Tokenized Bonds and Debt Instruments

An issuer creates a bond token with a fixed supply. The bond may have lifecycle events: coupon payments (as asset transfers), partial redemptions (as burns), or maturity (as a full burn with a corresponding fiat settlement off chain).

How AMP2 supports this:

• Issue the bond with contract metadata reflecting the instrument terms.
• Register bondholder wallets and set restrictions so bonds can only move between approved parties.
• Use send operations for coupon distributions to multiple recipients in a single transaction.
• Use burn operations for partial or full redemption at maturity.
• Use asset lock to prevent transfers during settlement windows.

Key capabilities used: issuance, multi recipient send, burn, lock/unlock, restrictions.

Treasury and Internal Instruments

Enterprises use AMP2 for controlled asset flows between internal entities, desks, or subsidiaries. Tokens represent internal accounting units, transfer rights, or inter company obligations.

How AMP2 supports this:

• Issue assets with internal only contract metadata.
• Register wallets for each entity or desk.
• Set restriction whitelists so assets can only move within the approved internal network.
• Use monitoring endpoints to reconcile on chain state with internal accounting systems.
• Use UTXO level locking for fine grained holds on specific outputs.

Key capabilities used: issuance, wallet registration, restrictions, monitoring, UTXO locking.

Venue facing Issuance

A venue (exchange, broker, or OTC desk) integrates with AMP2 to list and trade issuer managed assets. The venue registers its own wallets, receives assets from issuers, and facilitates transfers between its clients.

How AMP2 supports this:

• Venue initializes the LWK based Rust client with its keyorigin xpub and AMP2 URL.
• Venue registers its wallet descriptor and receives a WID.
• Issuer sends assets to the venue's WID after completing whitelisting.
• Venue builds transfer PSETs locally using TxBuilder, requests AMP2 cosigning, and broadcasts.
• A proxy service can abstract COSE complexity for the venue's downstream wallet clients.

Key capabilities used: LWK setup, wallet registration, PSET construction and cosigning, proxy integration.

Choosing the right model

Next steps

• Issuer Quickstart: get from invite to first asset
• Venue Quickstart: LWK setup and wallet registration
• Restrictions: how transfer policies work