10.1 Finance & Regulatory Terminology

Asset Tokenisation – The process of turning legal rights to a real-world asset into a digitally transferable token that can be tracked on a public ledger.

Accredited Investor – A person or entity that meets specific income or net-worth thresholds set by regulators, allowing participation in certain private offerings that are not open to the general public.

Custodian – A regulated firm entrusted with holding and safeguarding client assets, often subject to strict capital and reporting requirements.

KYC (Know Your Customer) – A mandatory procedure whereby financial service providers verify the identity of clients and screen them against sanctions or criminal watchlists.

AML (Anti-Money-Laundering) – A collection of laws and practices aimed at preventing the movement of funds derived from illegal activities.

SPV (Special Purpose Vehicle) – A legally separate company created to hold or manage assets so that financial and legal obligations remain ring-fenced from the parent organisation.

Primary Market – The first instance in which a security or token is sold directly by its issuer to investors.

Secondary Market – Any subsequent trading of those securities or tokens among investors after the initial issuance.

Delivery-versus-Payment (DvP) – A settlement model ensuring that asset transfer and payment occur simultaneously, eliminating counter-party risk during exchange.

Disclosure Obligation – A legal duty requiring issuers to publish accurate, timely information—such as financial statements or risk factors—so that investors can make informed decisions.