# Glossary Source: https://docs.settlemint.com/docs/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. ## How these terms fit together [#how-these-terms-fit-together] 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. ## Tokenization and regulated assets [#tokenization-and-regulated-assets] | 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](/docs/architecture/start-here/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](/docs/architecture/start-here/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](/docs/architecture/start-here/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](/docs/architecture/start-here/glossary). | ## Identity and compliance [#identity-and-compliance] | 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](/docs/architecture/start-here/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](/docs/architecture/start-here/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](/docs/architecture/start-here/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](/docs/architecture/start-here/glossary). | ## Platform and protocol terms [#platform-and-protocol-terms] | 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](/docs/architecture/start-here/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](/docs/architecture/start-here/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](/docs/architecture/start-here/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](/docs/architecture/start-here/glossary). | ## Settlement and lifecycle operations [#settlement-and-lifecycle-operations] | 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. | ## Custody, signing, and operations [#custody-signing-and-operations] | 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](/docs/architecture/start-here/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. | ## Operating responsibility terms [#operating-responsibility-terms] | 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. | ## Regulatory terms [#regulatory-terms] 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. | ## Which glossary to use [#which-glossary-to-use] | 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. | ## Where to next [#where-to-next] * [DALP overview](/docs/executive-overview/dalp-overview) for the business view of the platform. * [Compliance and security](/docs/executive-overview/compliance-security) for the executive control model. * [Architecture glossary](/docs/architecture/start-here/glossary) for technical definitions and protocol terms.