1. User sends USDC to the fund’s smart contract.

  2. The smart contract logs your subscription request and atomically (immediately) transfers the USDC to the fund’s account at Coinbase Custody.

  3. Excellar’s management company will convert the USDC into USD at Coinbase, who will then wire the USD via one of their partner banks to the fund’s cash account at Clear Street.

  4. XUSG tokens will be minted and issued to the user at the execution price based on the fund’s daily NAV.

  5. Excellar’s management company will use the USD at Clear Street to purchase the ETF.

  6. When the ETF pays out a dividend, Excellar’s management company will reinvest the dividend proceeds in the same underlying ETF. Unlike the ETF, XUSG itself does not pay out a dividend, but accumulates in value as the dividends are reinvested.

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