Executive overview
Glossary
Buyer-friendly definitions for tokenization, regulated assets, compliance, custody, settlement, and DALP platform terms.
Executives and business reviewers use this glossary to evaluate DALP in strategy, operating-model, risk, and vendor discussions. The page explains common tokenization terms in plain business language and points to the technical glossary when the reader needs component-level precision.
DALP combines token issuance, identity, compliance rules, servicing, and settlement workflows on EVM-compatible infrastructure. The diagram shows the business concepts first, then the technical controls that support them.
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| Term | Plain-language meaning | Why it matters |
|---|
| Asset tokenization | Representing rights in an asset as tokens on a blockchain. | Tokenization can make issuance, transfer, servicing, and record keeping more programmable, but the legal rights still depend on the asset terms and operating model. For the technical vocabulary, use the architecture glossary. |
| Tokenized asset | A digital token that represents a financial instrument, participation right, or other approved asset programme. | The token is the on-chain representation used by platform workflows such as issuance, transfer, servicing, and redemption. For protocol terms, use the architecture glossary. |
| Security token | A token that represents a regulated financial instrument or investment right. | Security tokens usually require identity, eligibility checks, transfer restrictions, and auditability. For the technical standard behind regulated tokens, see ERC-3643 in the architecture glossary. |
| Stablecoin | A token designed to track the value of a fiat currency or other reference asset. | Stablecoins are often used as on-chain settlement assets, subject to the issuer, reserve, jurisdiction, and custody model selected for the programme. |
| Denomination asset | The currency or token used to settle payments, distributions, redemptions, or offering proceeds for an asset. | The denomination asset determines how cash-like value moves through lifecycle and settlement workflows. See Denomination Asset in the architecture glossary. |
| Term | Plain-language meaning | Why it matters |
|---|
| KYC | Know Your Customer checks that verify the participant behind a wallet or account. | Regulated assets need a way to decide whether a participant is allowed to hold or receive the asset. |
| AML | Anti-Money Laundering controls used to reduce financial crime risk. | AML is part of the wider operating model around onboarding, monitoring, sanctions screening, and escalation. |
| OnchainID | An on-chain identity framework used to connect wallet addresses with verifiable claims. | Identity claims let compliance logic evaluate whether a wallet can participate in a regulated asset workflow. See OnchainID in the architecture glossary. |
| Trusted issuer | An approved party that can issue identity or compliance claims for defined topics. | The trusted issuer model separates who verifies a participant from the token contract that enforces transfer rules. See Trusted Issuer in the architecture glossary. |
| Claim topic | A category of verification or eligibility claim, such as KYC status, jurisdiction, or investor qualification. | Claim topics make compliance requirements explicit and reusable across regulated assets. See Claim Topic in the architecture glossary. |
| Compliance rule | A configured condition that must pass before a regulated asset action can proceed. | Rules turn policy choices into repeatable platform checks, for example identity verification, country restrictions, or holding limits. |
| Compliance module | A reusable on-chain rule component evaluated by the asset's compliance policy. | Modules let teams compose asset-specific controls without treating every asset as a bespoke implementation. See Compliance Module in the architecture glossary. |
| Term | Plain-language meaning | Why it matters |
|---|
| DALP | SettleMint's Digital Asset Lifecycle Platform for issuing, managing, and servicing tokenized financial instruments. | DALP provides the platform layer for the asset lifecycle rather than only the token contract. See DALP in the architecture glossary. |
| SMART Protocol | SettleMint Adaptable Regulated Token, the protocol framework used for regulated token behavior. | SMART Protocol defines the compliance and identity-aware asset model used by DALP assets. See SMART Protocol in the architecture glossary. |
| ERC-3643 | An Ethereum standard for permissioned tokens that check identity and compliance before transfers. | ERC-3643 is a common vocabulary for regulated token transfers, trusted issuers, identity registries, and claim topics. See ERC-3643 in the architecture glossary. |
| EVM | Ethereum Virtual Machine, the execution environment used by Ethereum and compatible networks. | DALP uses EVM-compatible infrastructure. This does not mean native support for non-EVM chains. |
| Smart contract | Code deployed to a blockchain that executes asset, compliance, or settlement logic. | Smart contracts enforce the rules configured for a tokenized asset and create on-chain evidence of actions. |
| Factory | A deployment pattern where approved templates create new asset, addon, or infrastructure contracts. | Factories support repeatable deployment with consistent configuration rather than one-off contract launches. See Factory Pattern in the architecture glossary. |
| Term | Plain-language meaning | Why it matters |
|---|
| Lifecycle operation | A business action on a tokenized asset, such as issuance, transfer, distribution, redemption, or administrative change. | Lifecycle operations are where product, compliance, custody, and audit requirements meet. |
| DvP | Delivery versus Payment, where asset delivery and payment are coordinated so settlement risk is reduced. | DvP is a key pattern for regulated asset settlement because neither leg should be treated in isolation. |
| XvP settlement | Exchange versus Payment settlement for coordinating token exchanges in one workflow. | XvP covers atomic settlement patterns where the approved exchange either completes together or does not complete. |
| DAIO | Digital Asset Initial Offering, a primary distribution mechanism for newly issued assets. | DAIO supports controlled primary distribution rather than ad hoc token allocation. |
| Cap table | The record of who holds an asset and in what amount. | Tokenized assets still need holder records that issuers, administrators, and auditors can reconcile. |
| Redemption | Converting tokens back into cash, another settlement asset, or an off-chain entitlement according to the asset terms. | Redemption defines the exit path and must align with the programme's legal, custody, and settlement design. |
| Corporate action | An issuer-driven event such as a distribution, coupon, split, conversion, or redemption. | Corporate actions are how asset terms become operational events after issuance. |
| Term | Plain-language meaning | Why it matters |
|---|
| Custody | The operating model and provider setup used to control keys and assets. | DALP workflows depend on the selected custody and signing architecture, but legal custody responsibility remains a programme and provider decision. |
| Wallet | A blockchain account controlled by one or more private keys or a custody provider. | Wallets are the operational endpoints for participants, issuers, service providers, and platform-controlled actions. |
| Private key | The cryptographic secret or provider-managed signing material that controls a wallet. | Key loss or misuse can create irreversible asset risk, so institutional deployments require controlled signing processes. |
| Signing controls | The approvals, provider configuration, and transaction handling used to authorize blockchain actions. | Signing is where approvals, custody provider behavior, network fees, and transaction finality meet. For component-level detail, use the architecture glossary. |
| Multisig | A wallet or control model that requires multiple approvals before an action is authorized. | Multisig supports maker-checker controls and segregation of duties when the custody model supports multiple approvals. |
| Audit trail | A record of actions, actors, state changes, and transaction evidence. | Audit trails help operators and reviewers reconstruct what happened during issuance, transfer, compliance, and settlement workflows. |
| Term | Plain-language meaning | Why it matters |
|---|
| Reserve or backing evidence | External proof that an off-chain reserve, custodian account, or physical asset supports the token record. | DALP can record token-side collateral state and expose supply, holder, and lifecycle evidence. The programme still needs external reserve, custody, and audit evidence. |
| Reconciliation | Comparing DALP token state with external systems such as treasury, custody, accounting, payment, or reserve records. | Reconciliation shows whether on-chain supply, off-chain value, and operating records still agree after minting, burning, settlement, or provider updates. |
| Integration handoff | The point where a DALP-controlled EVM token action depends on another system, provider, payment rail, bridge, or non-EVM network. | The external route has its own finality, replay, fraud, availability, and recovery controls. DALP does not turn those external controls into native DALP behavior. |
| Idempotency | A request-handling pattern that prevents a retry from creating the same operation twice. | Idempotency helps API and operations teams retry safely after timeouts or unclear network results. It does not replace reconciliation for external legs. |
These definitions are orientation notes, not legal advice. The exact classification and obligations depend on the jurisdiction, instrument, issuer, investor base, and service providers.
| Term | Plain-language meaning | Why it matters |
|---|
| MiCA | The EU Markets in Crypto-Assets regulation. | MiCA can affect stablecoin, crypto-asset, and service-provider obligations in the EU. |
| Regulation D | A US private offering exemption used for certain securities offerings to qualified investors. | Regulation D often shapes investor eligibility, transfer restrictions, and offering controls for US private markets. |
| Regulation S | A US securities framework for certain offshore offerings. | Regulation S can affect distribution restrictions, holding periods, and transfer controls for non-US offerings. |
| MAS | Monetary Authority of Singapore, Singapore's financial regulator. | MAS rules may affect licensing, token classification, custody, outsourcing, and operating controls for Singapore programmes. |
| Reader question | Use this page when | Use the architecture glossary when |
|---|
| What does this term mean in a business discussion? | You need a board, risk, sales, or operating-model explanation. | You need protocol-level precision. |
| How do compliance terms relate to the asset lifecycle? | You need the plain relationship between identity, claims, and rules. | You need the exact DALP components and standards. |
| Is this a DALP capability or externally owned work? | You need to know what DALP covers before a vendor or programme decision. | You need the component responsible for the behavior. |
