Setup describes a process where a trusted partner creates a new type of price-stable credit. Aside from the name, a stable credit has two values associated with it; the pegged currency and the pegged value. The minted stable credit is pegged to the currency specified as the pegged currency. Pegged value signifies the ratio between currency value and 1 unit of stable credit.
Stable credit names must be unique for each trusted partner. A single type of stable credit is only allowed to be pegged to a single currency.
Under the hood, the set up process is creating a pair of accounts on Stellar Specifically,
The stable credit is minted from the issuing account and is transferred to the distribution account. Only you, as a trusted partner, will be able to withdraw stable coin from the distribution account. Please note that a trustline between your account and the issuing account of the stable credit needs to be established before you can transfer the minted stable credit to your account.