# Token Redemption

When an approved ZARP Partner sends tokens from their authorised wallet addresses to the Redemption Address owned by ZARP Stablecoin, the tokens are destroyed and a corresponding amount of fiat money is sent to the Partner’s bank account. This bank account must be in the name of the Partner institution and ZARP Stablecoin does not permit payments directly to third parties.

<figure><img src="/files/P5sGDC4xDD7f6DhHfxrg" alt=""><figcaption></figcaption></figure>


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