How to Issue a Token on Xahau: A Complete Guide

The Xahau Ledger is a smart contract-enabled sidechain of the XRPL, introduced in 2023. It brings native hooks (smart contract functionality) to the ecosystem, enabling on-chain automation, advanced governance mechanisms, and new possibilities for tokenization.

In this guide, you’ll learn how to create a token on Xahau, what Xahau tokens are, and what you can use them for.

What Are Xahau Tokens?

Xahau tokens (also called “issued currencies” or IOUs) are digital assets created on the Xahau. They are fungible, which means each unit of the token is interchangeable with another.

Tokens are digital assets on the Xahau that can stand in for almost any form of value. They can represent real-world assets such as stablecoins like the US dollar, precious commodities, loyalty credits, or even simple items like a chair, a cup of tea, or an hour of work.

For unique assets such as collectibles, digital art, or event tickets, Xahau supports URI tokens, which provide a standardized way to represent one-of-a-kind items. While URI tokens are ideal for unique assets, fungible tokens remain best suited for currencies, points, or other divisible assets.

How to Create a Token on Xahau

Creating a fungible token is simple and doesn’t require smart contracts. Here’s the basic process:

Step 1

Decide what kind of token you want — and whether you actually need one. Start by choosing a name.

• If it’s a utility token, you can issue as many as you like.
• If you want a limited supply, you can blackhole the issuing account so that no additional tokens can ever be created. Learn more about Blackholed Addresses.
• If you plan to issue tokens continuously, it’s best to use a hardware wallet (such as Ledger).
👉 You can get your Ledger Wallet here.

Step 2

Set up TWO accounts – one will issue the token (ISSUER ACCOUNT), the other will hold and distribute it (CURRENCY DESTRIBUTION ACCOUNT).

Step 3

Fund both accounts with XAH – each account must meet the XAH reserve requirement.

Step 4

Enable the Default rippling on the ISSUER ACCOUNT. You can do it on the Account Settings page (under the Advanced Options).

Step 5

Create a trustline – the receiving account (CURRENCY DESTRIBUTION ACCOUNT) must explicitly trust the issuing account to hold its token. This trustline must be created with Rippling enabled. You can do it here.

Step 6

Send a payment transaction – the ISSUER ACCOUNT sends a payment of the new token to the CURRENCY DESTRIBUTION ACCOUNT.

Step 7

Follow the guidence to register your token and make it representable. Guidence for token issuers.

Step 8

Users can now create trustlines to your ISSUER ACCOUNT to hold your token. You can share a link to Simple mode (where Rippling is disabled). Get your Trust Set link for your token here.

Step 9

Now you can distribute your token from the CURRENCY DESTRIBUTION ACCOUNT. You can send payments, create orders on DEX.

This creates the token on Xahau. 🎉

Why Trustlines Are Important?

A trustline is a built-in safety feature. Users must opt in to accept a token from a specific issuer. This prevents spam and ensures that you only hold tokens from sources you trust. For example, users will likely trust EVR issued by Evernode more than tokens issued by an unknown individual.

Common Scenarios for Xahau Tokens

1. Meme or Community Tokens

Often the first step for new projects. Fun, simple, and great for community engagement.

2. Fiat-Backed Stablecoins
Banks or payment providers can issue fiat-backed stablecoins. The recommended setup uses:
• A cold (issuer) account – the secure account that creates tokens.
• A hot (operational) account – the account that distributes tokens to customers.
This model protects the issuer while enabling smooth day-to-day operations.
3. Fixed Supply Tokens
Communities or projects can issue tokens with a capped supply. Once distributed, the issuer account can be blackholed (keys destroyed), ensuring that no additional tokens can ever be minted.

What You Can Do With Your Xahau Token

Once issued, your Xahau token is a full participant in the network:

• Trade it on Xahau’s decentralized exchange (DEX)
• Swap it for XAH or other issued assets
• Use it in loyalty or community programs
• Store and transfer it using Xahau-compatible wallets

For unique assets such as artwork, collectibles, or event tickets, you can issue NFTs on Xahau instead of fungible tokens.

Advantages of Xahau for Tokenization

• Speed – transactions settle in 3–5 seconds
• Low fees – 0.000027 XAH
• No smart contracts needed – tokenization is a native feature
• Security through trustlines – users choose which tokens to hold

Creating a token on Xahau is fast, secure, and cost-efficient. Whether you’re building a memecoin, stablecoin, loyalty program, or governance system, Xahau provides the tools to do it with minimal complexity.