Abstract: A blockchain-based, distributed ledger management system for interest bearing digital coins is provided. In the blockchain-based, distributed ledger management system, a custodial bank receives an electronic deposit of fiat currency from a customer that is entitled to periodic payment of interest. In response, a fiat coin issuer system activates a blockchain-based smart contract that creates fiat coin in proportion to the dollar value of the fiat currency. The fiat coin is then distributed to the public address of the customer on the blockchain. Later, when interest is due to be paid on the deposit of fiat currency, a blockchain node system executes a smart contract that calculates the interest amount due and generates additional fiat coin in proportion to the dollar value of the interest. The additional fiat coin is then distributed to the public address of the customer on the blockchain.