The Knowledge Hub
Core concepts, key terms, and structural frameworks for the tokenized economy.
RWA: The Definition
Definition. Real-World Assets (RWAs) are digital tokens representing legal or economic rights to off-chain assets: cash, treasuries, commodities, equities, private credit, real estate, and more. Each token encodes ownership and transfer rules; verifiable custody and legal compliance are the non-negotiable foundation.
Why It Matters. Instead of PDFs, subscription forms, and T+2 settlement, tokenized assets operate on programmable rails. Ownership becomes transparent, income streams are automated, and access becomes global.
The Problem Tokenization Solves
Traditional private markets are expensive, exclusive, and slow. Tokenization addresses these bottlenecks directly:
Access
Fractional ownership lowers minimums from institutional thresholds to retail-accessible levels, paired with secure, wallet-based onboarding.
Income Automation
Smart contracts enforce payout schedules and lockups without manual intervention, reducing operational drag.
Settlement
Near-instant issuance, transfer, and redemption eliminate back-office queues and counterparty risk.
Auditability
On-chain events create a live, immutable audit trail for investors, operators, and regulators.
This is not a silver bullet. Tokenization is only viable where the underlying claim is legally enforceable, custody is verifiable, valuation is reliable, and genuine market demand exists.
The Asset Universe
Key examples include:
The rule is simple: If title, custody, or pricing are murky, the asset belongs off-chain.
The End-to-End Workflow
A repeatable, institutional-grade process for bringing assets on-chain:
Asset Due Diligence – Legal, financial, and yield verification.
Legal Wrapper – Create an SPV or fund to hold the asset and define investor rights.
Chain Selection – Choose infrastructure based on compliance, speed, and auditability.
Smart Contract Development – Encode ownership, transfer rules, payout logic, and lockups.
Audit & Compliance – Align code and legal documentation with jurisdictional regulators.
Token Minting – Issue tokens to the issuer's treasury or directly to whitelisted investors.
Investor Onboarding – Execute KYC/AML, wallet whitelisting, and funding.
Asset Operation – Collect income, distribute yield, and publish on-chain reports.
Inside a Tokenized Fund
A tokenized fund pools capital into income-producing assets. A legal entity holds the assets; smart contracts mirror the rulebook on-chain, automating operations.
Core Layers:
- Legal Wrapper: An SPV or foundation that legally owns the portfolio.
- Tokenized Share Classes: Defines investor rights and transfer permissions.
- Smart Contract Modules: Automate distributions, lockups, and compliance enforcement.
- Investor Interface: Provides real-time metrics and financial statements.
Risk Controls are encoded, not suggested. Concentration limits and redemption policies are enforced by the code itself, creating a transparent and predictable system.
Our Market Segments
We analyze liquid tokens across three core segments; a fourth is maintained as a strategic watchlist:
Stable NAV — Tokenized funds and money markets designed to maintain a stable price while distributing yield.
Dynamic Peg — Tokens that mirror a live external price (e.g., gold, equities). We monitor the on-chain price versus spot parity.
Free Market — Platform and governance tokens with free-floating prices, driven by protocol adoption and market momentum.
Illiquid / Periodic NAV (Watchlist) — Real estate and private assets with monthly or quarterly revaluations.
(Our deep measurement logic and data sources are detailed in the Methodology section.)
Glossary
Oldschool Classification Matrix (OCM)
OCM definitions, metrics, and display logic · 15 terms · 15 terms
Oldschool Classification Matrix (OCM)
OCM definitions, metrics, and display logic · 15 terms · 15 terms
Liquidity Profile
How frequently and reliably an asset can be priced or exited (continuous market pricing vs. periodic NAV/appraisal), used as one axis of OCM.
Baseline Mechanism
The reference value used for spreads: par+AI, fund NAV, spot reference, or last appraisal/NAV; the second axis of OCM.
Fixed Income (OCM Category)
Money markets & short-duration treasuries. Baseline from fund NAV or par+AI; secondary market may be limited. Discount shown only if a tradable market and sufficient price confidence exist. Examples: BUIDL, STBT, OUSG.
Stable NAV / Funds (OCM Category)
Official fund NAV (daily/weekly). Typically primary-only redemption; we display NAV and staleness, not "market discounts," unless a real secondary price exists. Examples: MAPLE, SCOPE, CRDT.
Dynamic Peg (OCM Category)
Live spread vs. spot reference (e.g., LBMA/CME). Discount/premium = (token price − spot) / spot, gated by timestamp synchronization and staleness rules. Examples: PAXG, XAUT.
Illiquid / Periodic (OCM Category)
Discount to last appraisal/NAV, always shown with NAV age. Price comes from proxy market signals (floor/median/count) rather than a single exchange. Examples: COURTYARD, REALT.
Par + Accrued Interest (Par+AI)
Par value plus interest accumulated since the last coupon date; used as a baseline for some short-term fixed-income instruments and fund share classes.
Price Confidence (High/Med/Low)
Objective liquidity score from 30-day volume, order-book depth, and venue count. High = ≥$1M volume, ≥$100k depth, ≥2 venues; Med = ≥$100k, ≥$20k; Low = below. Low confidence discounts are hidden by default.
Venue Count
Number of distinct trading venues (CEX/DEX) we observe for an asset; part of Price Confidence and displayed in asset metadata.
Order-Book Depth
USD value of executable liquidity within a tight band (e.g., ±2% of mid); used in Price Confidence thresholds.
Proxy Market Signals
Aggregated listing data for illiquid assets when no continuous market exists. We display Floor, Median (primary), and Listings count, plus source, timestamp, and filter notes.
Proxy Median / Proxy Floor
Median is the middle listing price (robust against outliers) and becomes the primary value; Floor is the lowest current listing (susceptible to manipulation).
NAV Age
Days since the last official NAV/appraisal. Bands: 0–30d (green), 31–90d (yellow), 91–180d (orange), >180d (red). Always shown for illiquid/periodic assets.
Staleness (Price / Baseline / Pair)
Badges for data freshness: Price >2h (Dynamic Peg) → Data Stale; Price vs. Spot diff >2h → Data Stale and hide spread; Baseline >3d → Baseline >3d.
Manual Override
Transparent, audit-tracked baseline inserted when APIs are unavailable or gated. Stored with value, timestamp, source URL, notes, entered_by, valid_until and surfaced with a gold "Manual Override Active" strip in the UI.
Regulatory Frameworks & Licensing
Legal regimes, licenses, and supervisory authorities · 19 terms
Regulatory Frameworks & Licensing
Legal regimes, licenses, and supervisory authorities · 19 terms
MiCAR
The EU Markets in Crypto-Assets Regulation, establishing licensing, prudential, and disclosure requirements for crypto-asset issuers and service providers across the single market.
EMT (Electronic Money Token)
A MiCAR-defined stablecoin fully backed by fiat reserves, redeemable at par, and supervised under e-money style rules.
ART (Asset-Referenced Token)
A MiCAR category of tokens referencing baskets of currencies, commodities, or crypto assets and subject to enhanced reserve and governance controls.
CASP (Crypto-Asset Service Provider)
A regulated firm authorised under MiCAR to provide custody, exchange, brokerage, or issuance services for crypto-assets within the EU.
MiFID II
The EU Markets in Financial Instruments Directive governing traditional securities venues, investor protection, and disclosure—still applicable to tokenized securities.
DTSP (Digital Token Service Provider)
Singapore's FSMA Part 9 regime covering token issuance, custody, exchange, and brokerage services with capital, AML, and risk-control requirements.
SCS (Single-Currency Stablecoin)
A MAS-regulated fiat stablecoin pegged 1:1 to SGD or G10 currencies with high-quality reserves, segregation, and periodic attestations.
VATP (Virtual Asset Trading Platform)
Hong Kong's SFC-licensed venue for trading virtual assets, including requirements for custody, insurance, and retail suitability checks.
FRVA / ARVA
Dubai VARA's classifications for fiat-referenced and asset-referenced virtual assets, dictating whitepaper, reserve, and licensing obligations.
Passporting (EU)
Right for a MiCA/MiFID-licensed firm to offer services across EU member states without new local licenses.
Framework Maturity (Mature / Developing)
Signal of how complete/tested a jurisdiction's legal & supervisory stack is for tokenized assets.
Event Types (LEGISLATION / GUIDANCE / LICENSING / ENFORCEMENT / SANDBOX)
Labels for regulatory milestones in timelines.
FINRA / SEC / OCC / FinCEN (US)
Key US overseers: market SRO (FINRA), securities regulator (SEC), bank supervisor (OCC), AML bureau (FinCEN).
ESMA / EBA / NCAs (EU)
EU markets supervisor (ESMA), banking authority (EBA), and national competent authorities.
FINMA / Bucheffekten (CH)
Swiss supervisor; 'ledger-based securities' (Bucheffekten) give explicit property/title rights on DLT.
MAS / PSA / DTSP (SG)
Singapore central bank/markets regulator (MAS); Payment Services Act (PSA); DTSP licensing for token services.
SFC / HKMA / VATP (HK)
Securities regulator (SFC), monetary authority (HKMA), and licensed virtual-asset trading platforms (VATP).
VARA / SCA / ADGM / DIFC (UAE)
Dubai VA regulator (VARA), federal securities regulator (SCA), Abu Dhabi/Dubai financial free zones.
RWA Readiness (Index/Score)
Composite view of a jurisdiction's suitability for institutional RWAs (legal maturity, custody, access, prudential, framework status).
Market Infrastructure & Trading
Venues, platforms, and secondary market mechanisms · 8 terms
Market Infrastructure & Trading
Venues, platforms, and secondary market mechanisms · 8 terms
DLT Trading Facility
A Swiss licence category that allows multilateral trading of tokenized securities on distributed-ledger infrastructure under FINMA supervision.
RMO / AMO
Singapore's Recognised Market Operator and Approved Market Operator licences that allow the operation of trading venues for tokenized securities.
ATS / Broker-Dealer
U.S. regulatory designations for alternative trading systems and intermediaries that facilitate secondary trading of digital securities under SEC and FINRA oversight.
ATS / National Exchange / Broker-Dealer (US)
Regimes for secondary trading of digital securities; ATSs are operated by registered broker-dealers.
MTF / OTF / Regulated Market (EU)
EU venue types for multilateral trading in securities, used by security-token platforms.
Liquidity
The ease with which an asset can be bought or sold without significantly affecting its market price.
Market Access Tiers
Who may invest: Institutional only, Professional only, Retail allowed, Pilot only, Not permitted.
Investor Tier (1/2/3)
Our UX badge: 1 = retail access; 2 = professional/qualified only; 3 = institutional or highly restricted.
Custody, Reserves & Asset Controls
Safekeeping, segregation, and on-chain controls · 11 terms
Custody, Reserves & Asset Controls
Safekeeping, segregation, and on-chain controls · 11 terms
Custody
The secure holding and management of assets on behalf of clients.
Qualified Custodian (US/EU)
Regulated institution permitted to safekeep client assets under fiduciary, audit, and segregation rules.
HQLA (High-Quality Liquid Assets)
Cash and top-tier instruments eligible for reserves; maximizes liquidity/credit quality.
Segregation (of reserves/assets)
Client assets legally and operationally separated from issuer/custodian balance sheets.
Proof of Reserves (PoR)
Mechanism—often with cryptographic proofs and third-party attestations—to evidence backing vs. liabilities.
Attestation (Reserve/Controls)
Independent verification that reserves or key controls exist at a stated date/frequency.
Freeze / Clawback
Issuer/custodian controls to pause or reverse transfers when required by policy or law.
Whitelist
An allow-list of KYC-verified wallet addresses eligible to hold or transfer a specific token.
BCBS Group 1 / Group 2
Basel Committee categories that determine capital treatment for banks holding tokenized assets: Group 1 for high-quality collateral, Group 2 for higher-risk exposures.
BCBS Groups (G1a / G1b / G2)
Basel capital-treatment buckets for bank exposures to crypto assets (G1a most favorable; G2 highest capital).
Custody Tier (1/2/3)
Our UX badge: Tier 1 bank/CSD-grade custody; Tier 2 licensed VA/DTSP custody; Tier 3 self-custody/unclear.
Compliance & Disclosure
KYC/AML, reporting, and transparency requirements · 6 terms
Compliance & Disclosure
KYC/AML, reporting, and transparency requirements · 6 terms
KYC/AML
Know Your Customer / Anti-Money Laundering. Processes for verifying the identity of investors to meet regulatory requirements.
Travel Rule (AML)
Requirement that sender/recipient information accompanies value transfers between obliged entities.
Prospectus / KID (EU)
Regulatory disclosure documents for public offers; KID is a short, retail-oriented summary under PRIIPs.
Disclosure Cadence
Frequency of reserve/audit reporting (e.g., daily, monthly, quarterly, semi-annual).
Whitepaper (Regulatory)
Mandatory disclosure under some VA/stablecoin regimes (e.g., VARA) covering reserves, governance, risks.
Transfer Agent
Registered intermediary that maintains holder records, processes corporate actions, and handles KYC/AML checks.
Legal & Technical Foundations
Core structures, token standards, and legal tests · 14 terms
Legal & Technical Foundations
Core structures, token standards, and legal tests · 14 terms
SPV (Special Purpose Vehicle)
The legal entity, typically a subsidiary, created to hold assets and isolate financial risk.
Issuer
The entity that issues a tokenized asset.
Smart Contract
A programmable contract on a blockchain that automatically executes its terms without intermediaries.
ERC-20
A standard for fungible (interchangeable) tokens on the Ethereum blockchain.
ERC-721
A standard for non-fungible (unique) tokens (NFTs) on the Ethereum blockchain.
Oracle
A service that connects a smart contract to external, real-world data sources.
On-Chain
Refers to processes or data that occur or are stored directly on the blockchain.
Off-Chain
Refers to processes or assets that exist outside of the blockchain in the real world.
NAV (Net Asset Value)
The per-share market value of a fund's underlying portfolio.
Redemption
The process of exchanging tokens for the underlying asset or its cash equivalent.
Par Redemption
Right to redeem a token at face value (1:1 to reference asset), per stated terms.
Ledger-Based Registry / Tokenized Security
Record of ownership on a DLT or book-entry system for regulated securities represented as tokens.
Howey / Reves (US)
SEC tests for 'investment contract' and 'note'; used to decide if a token is a security.
Reg D / Reg S (US)
US private-placement and offshore-offering exemptions used for security-token issuance.