§6418 — The rail that turned tax credits into cash
Before §6418, IRA credits were trapped on the originator's tax return. §6418 unlocked a $50B+ secondary market by making credits cash-transferable. BV provides the on-chain rail that books the transfer election and clears in MXD.
The trade
§6418 lets a credit holder transfer eligible credits to an unrelated buyer for cash, exactly once. The transferee gets a refundable credit on their own return; the transferor gets cash; the IRS gets a portal filing.
The rail that makes this work — credit verification, buyer KYC, transfer-election filing, escrow, and cash settlement — is exactly what DeFi rails do well. BV provides that rail with:
- On-chain verification of credit existence and amount via XCT
- Atomic transfer-election booking as part of the trade
- MXD escrow for the cash leg
- Reg D 506(c) buyer gating via AccreditedRegistry
- Portal-filing handoff as a final off-chain step
OTC Desk
liveBilateral, wire-settled (or stablecoin at buyer's election). No tokenization required. Every IRA credit transaction we've closed to date has happened this way — the proven path.
About the OTC DeskOn-chain marketplace
testnetCredit tokenized as XCT at production. Marketplace bid book; atomic swap for MXD; transfer election booked on-chain. Continuous price discovery, faster settlement.
About §6418 transferabilityMechanics
- List: producer mints XCT-45V (or any other §45/§48 token).
- Bid: accredited buyer bids on the credit at a discount-to-face.
- Match: atomic swap of XCT for MXD; transfer election booked on-chain with portal-filing metadata.
- File: BV submits the IRS portal filing on behalf of both parties.
- Claim: transferee claims the credit on their next return.
Trust
- Every transfer election cited back to its IRS portal filing reference
- §6418-specific tax counsel sign-off on the workflow
- Marketplace itself accredited-only; non-accredited retail liquidity out of scope at v1
Questions on this product
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