Term | Definition |
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ADGM | Abu Dhabi Global Market is an international financial center and free zone located on Al Maryah Island in the United Arab Emirates's capital, Abu Dhabi. |
Blockchain | Blockchain is a decentralized, distributed ledger technology that records transactions across multiple computers. It ensures data integrity and security through cryptographic algorithms, making it ideal for tracking ownership and transfers of tokenized assets. |
Blockchain address | A unique identifier used to send and receive digital tokens. It is derived from the public key and acts similarly to a bank account number in traditional finance. |
Decentralization | The distribution of authority, control, and data across a network of computers, rather than being centralized in a single entity. This enhances security and reduces the risk of a single point of failure. |
Decentralized Finance (DeFi) | Decentralized Finance refers to financial services that operate on blockchain networks using smart contracts, removing the need for traditional financial intermediaries like banks. DeFi enables a range of services including lending, borrowing, and trading of tokenized assets. |
KYC | A process used by financial institutions and other regulated companies to verify the identity of their clients. KYC procedures involve collecting and verifying information such as a person's name, address, and identification documents to prevent fraud, money laundering, and other illegal activities. |
OEIC (Open-Ended Investment Company) | OEIC is a term denoting a regulated fund vehicle designed for pooling investors' assets to make investments. It represents a collective investment vehicle, offering a structured and regulated approach for managing investor funds. |
Private Key | A secret alphanumeric code used to sign transactions and access a digital wallet. The private key must be kept secure, as anyone with access to it can control the associated assets. |
Real-World Asset (RWA) | Real-World Assets refers to tangible, physical assets such as stocks, bonds, or real estate that are tokenized and represented on a blockchain. Tokenizing RWAs enables fractional ownership, making these assets more accessible and liquid for a broader range of investors. |
Smart Contract | A smart contract is a self-executing contract with the terms of the agreement directly written into the code. It automatically enforces and executes the terms of a contract when predefined conditions are met, ensuring trust and transparency in transactions. |
Staking | The process of locking up a certain amount of cryptocurrency in a wallet. In return, participants may earn rewards in the form of additional cryptocurrency. |
Token | A digital representation of an asset or utility that is recorded on a blockchain. Tokens can represent various assets, including cryptocurrencies, real-world assets, or access rights. |
Tokenization | Tokenization is the process of converting rights over a traditional asset into a digital token on a blockchain. Each token represents a specific portion of the asset and can be traded, transferred, or managed through digital means. |
U.S. Treasury Bill (T-Bills) | A short-term debt obligation backed by the U.S. Treasury with a maturity of less than one year. T-Bills are considered a safe and secure investment with low risk of default. |
Wallet | A wallet is a software application that allows users to view, store, manage, and transfer their digital tokens. Wallets can be custodial or non-custodial, providing varying levels of control and security over the assets. |
Introduction
Glossary