Launch a Loyalty Token or Branded Stablecoin for Your Business

Businesses have been issuing loyalty points and store credit for decades. What has changed is where those tokens live and what they can do. When a loyalty token is an on-chain ERC-20, it can be held in any wallet, traded, transferred, redeemed across partner ecosystems, and managed by AI agents without a human touching every transaction.

Fuse Network makes deploying a loyalty token or a branded stablecoin a practical option for any business, not just those with dedicated blockchain teams.

What is a loyalty token?

A loyalty token is a standard ERC-20 contract deployed with your brand name and symbol. Customers earn tokens through purchases or activity; they spend them on rewards, discounts, or exclusive access. Because the token lives on-chain, you get a transparent ledger of every issuance and redemption with no proprietary backend required.

Common setups on Fuse:

  • Mint tokens to customer wallets when a purchase threshold is hit
  • Allow token redemption at point of sale via a Solid-powered card integration
  • Partner with other businesses to accept each other’s tokens
  • Let customers hold tokens in their Solid wallet and earn yield while they accumulate

What is a branded stablecoin?

A branded stablecoin is a dollar-pegged ERC-20 issued under your business name — think ACME Dollars (ACMED) or BREW Cash — backed 1:1 by USDC held in reserve. It behaves like digital cash within your ecosystem: employees can receive wages in it, vendors can invoice in it, customers can hold and spend it.

Practical use cases:

  • Closed-loop payment systems: Deploy branded tokens for use across a franchise network or marketplace, with the issuer controlling mint and burn
  • Cross-border payroll: Pay contractors in emerging markets in your branded stablecoin, receivable into a Solid account with a Visa card for spending — no bank account required
  • Event and venue payments: Replace cash with on-chain tokens at festivals, stadiums, or hospitality venues (see Freedom Wallet’s deployment at Mystic Valley Music Festival)
  • Customer prepaid balances: Let customers load value in your branded token and spend it anywhere you accept it, with the balance visible in their Solid wallet

Deploying on Fuse

Both token types are standard ERC-20 contracts. Deploying one on Fuse costs roughly $0.0001 in transaction fees — negligible. Minting to 1,000 customer addresses costs $0.10 in total network fees.

There are two ways to deploy:

Using the Fuse MCP Server (no code required): Connect any AI assistant to a self-hosted instance of the Fuse MCP Server at mcp.fuse.io and describe what you want. The AI handles contract deployment, minting configuration, and ongoing management.

Example session:

“Deploy a loyalty token called BREW with a symbol of BREW and a maximum supply of 10 million. I want to be the only address that can mint.”

“Mint 500 BREW to each of these 50 addresses.”

“How many BREW tokens are currently in circulation and how many unique holders are there?”

Using the Fuse x402 API (for agent-driven minting): The Fuse x402 endpoint at ai.fuse.io supports loyalty token deployment at $5.00 and minting at $0.50 per recipient, payable in USDC by any AI agent without any account setup. Useful for platforms that want to let AI agents trigger minting automatically based on customer activity.

Managing tokens with AI agents

Once your token is live, an AI agent connected to the Fuse MCP Server can handle the ongoing management:

  • Query any address’s balance before approving a redemption
  • Mint tokens automatically when a purchase event is detected
  • Burn tokens on redemption and release the underlying reserve
  • Generate reports on circulation, top holders, and redemption rates
  • Alert you when a wallet approaches a reward threshold

At $0.0001 per transaction and 2-second finality, the agent can process thousands of mint and transfer events per day at negligible cost.

Getting started

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