Cryptographic token with separate circulation groups

A computing device, comprising:

• a processor;
• and
• a non-transitory computer-readable medium having stored thereon instructions that, when executed by the processor, cause the processor to perform operations including:
• providing, by an administrator affiliated with a financial institution, a first smart contract that generates cryptographic tokens as data constructs that are subject to rules of the first smart contract, said rules configured upon execution of the first smart contract to cause the cryptographic tokens to exist in either a circulation group or a non-circulation group, cryptographic tokens existing in the circulation group being associated with a first cryptographic wallet of at least one account holder at the financial institution, wherein cryptographic tokens of the non-circulation group cannot be associated with a user cryptographic wallet due to protocol limitations of the first smart contract;
• receiving, by the financial institution, a fiat currency deposit of a first amount from said at least one account holder, such that both the fiat currency deposit and cryptographic tokens are issued by the same bank or depository institution;
• issuing to the at least one account holder, in response to receipt of the fiat currency deposit within the same financial institution, a first quantity of cryptographic tokens that is in one-to-one correspondence with the first amount, said issuing conducted via a first immutable blockchain transaction based on a protocol delineated in the first smart contract that causes a set of cryptographic tokens to shift association from the non-circulation group to the circulation group;
• receiving, by the same financial institution from a user, the set of cryptographic tokens via a second immutable blockchain transaction, said receiving based on the protocol delineated in the first smart contract and causing dissociation from the first cryptographic wallet and a shift in association of the set of cryptographic tokens from the circulation group to the non-circulation group;
• in response to receipt of the set of cryptographic tokens, transferring, to the at least one account holder, fiat currency corresponding to the set of cryptographic tokens on a one-to-one basis;
• and
• in response to completion of the shift in association of the set of cryptographic tokens from the circulation group to the non-circulation group, initiating a burn function of the first smart contract on the set of cryptographic tokens thereby causing the set of cryptographic tokens to cease to exist.

A non-transitory computer-readable medium having stored thereon instructions that, when executed by one or more processors, cause the one or more processor to perform operations including:

• providing, by an administrator affiliated with a financial institution, a first smart contract that generates cryptographic tokens as data constructs that are subject to rules of the first smart contract, said rules configured upon execution of the first smart contract to cause the cryptographic tokens to exist in either a circulation group or a non-circulation group, cryptographic tokens existing in the circulation group being associated with a first cryptographic wallet of at least one account holder at the financial institution, wherein cryptographic tokens of the non-circulation group cannot be associated with a user cryptographic wallet due to protocol limitations of the first smart contract;
• receiving, by the financial institution, a fiat currency deposit of a first amount from said at least one account holder, such that both the fiat currency deposit and cryptographic tokens are issued by the same bank or depository institution;
• issuing to the at least one account holder, in response to receipt of the fiat currency deposit within the same financial institution, a first quantity of cryptographic tokens that is in one-to-one correspondence with the first amount, said issuing conducted via a first immutable blockchain transaction based on a protocol delineated in the first smart contract that causes a set of cryptographic tokens to shift association from the non-circulation group to the circulation group;
• receiving, by the same financial institution from a user, the set of cryptographic tokens via a second immutable blockchain transaction, said receiving based on the protocol delineated in the first smart contract and causing dissociation from the first cryptographic wallet and a shift in association of the set of cryptographic tokens from the circulation group to the non-circulation group;
• in response to receipt of the set of cryptographic tokens, transferring, to the at least one account holder, fiat currency corresponding to the set of cryptographic tokens on a one-to-one basis;
• and
• in response to completion of the shift in association of the set of cryptographic tokens from the circulation group to the non-circulation group, initiating a burn function of the first smart contract on the set of cryptographic tokens thereby causing the set of cryptographic tokens to cease to exist.