Glossary of tokenization and DALP terminology
Key terminology for digital asset platforms and tokenization. These terms connect directly to DALP lifecycle capabilities—from DvP settlement and vault custody to automated yield distribution—giving you the vocabulary to evaluate platform features and operational dashboards.
Concept network
The diagram below shows how key DALP concepts interconnect to enable compliant, automated digital asset operations:
Key relationships:
- DALP integrates lifecycle capabilities (DvP settlement, vault custody, yield distribution) with compliance infrastructure (ERC-3643 standard)
- DvP uses Vault for atomic settlement—both asset and payment custody ensures simultaneous exchange without counterparty risk
- ERC-3643 requires OnchainID to link wallet addresses to verified identities, enabling compliance checks before every transfer
- OnchainID enables Compliance Modules by providing verified claims (KYC status, accreditation, jurisdiction) that feed rule evaluation
- Yield Management leverages Vault for secure distribution of coupon payments, dividends, and returns to token holders
Core tokenization concepts
The foundation of digital asset platforms rests on a few key innovations that make traditional finance programmable. These concepts underpin every feature in DALP—from compliance automation to instant settlement—and appear throughout observability dashboards when you're monitoring platform health.
Asset tokenization: Converting ownership rights in real-world assets into digital tokens on a blockchain. The token represents the same legal rights as traditional instruments but enables instant transfer and automated compliance. For example, a bond token carries identical coupon payment rights but settles through DvP vaults rather than wire transfers.
Blockchain: A distributed ledger technology where transactions are recorded in blocks and cryptographically linked. Provides immutable audit trails and eliminates single points of failure. Every transaction visible in your observability dashboards is anchored to a specific block for tamper-proof verification.
Smart contract: Self-executing code on a blockchain that automatically enforces rules and executes transactions when conditions are met. Enables programmable compliance and automated corporate actions. For instance, a bond smart contract distributes coupon payments to all token holders proportionally without manual intervention—you'll see these distributions as events in the yield management dashboard.
Token: A digital representation of an asset on a blockchain. Security tokens represent ownership or financial rights in regulated assets like bonds, equities, or fund units. Each token interaction (transfer, lock, redemption) generates metrics tracked in the cap table and compliance dashboards.
Compliance and identity
Regulated assets demand verified identities and automated rule enforcement at every transfer. This section covers the identity infrastructure that makes compliance invisible to users while remaining auditable for regulators. When you review compliance metrics in observability dashboards, these are the mechanisms generating those pass/fail statistics.
ERC-3643: A token standard specifically designed for permissioned securities. Ensures compliance checks happen before every transfer by linking tokens to verified identities. The compliance dashboard shows real-time rule evaluation stats powered by this standard.
OnchainID: A decentralized identity protocol where verified claims about an investor (KYC status, accreditation, jurisdiction) are cryptographically linked to their wallet address. These claims feed the compliance engine that decides whether a transfer can proceed.
Identity registry: A system that maps wallet addresses to verified identities and eligibility criteria. Only registered addresses can interact with compliant assets. Observability dashboards track registration rates and identity verification status across your investor base.
KYC/AML: Know Your Customer and Anti-Money Laundering procedures required by regulators. Verifies investor identity and screens against sanctions lists. Completion rates and verification latency appear as metrics in operational dashboards.
Accredited investor: An individual or entity meeting financial thresholds (income, net worth, or sophistication) allowing participation in private securities offerings under US regulations. Identity claims capture accreditation status, enabling automated eligibility checks at transfer time.
Platform architecture
DALP integrates lifecycle management, compliance, custody, and settlement into one coherent system—eliminating the vendor sprawl that creates operational gaps and blind spots. These architectural components power the unified observability stack that gives you real-time visibility into every aspect of your digital asset operations.
DALP (Digital Asset Lifecycle Platform): Unified infrastructure managing the complete lifecycle of tokenized assets from issuance through redemption. Integrates compliance, custody, settlement, and servicing in one system rather than cobbling together multiple vendors. The observability stack monitors all DALP components, surfacing performance and health metrics in centralized dashboards.
SMART Protocol (SettleMint Adaptable Regulated Token): The compliance framework underlying all ATK assets. Extends ERC-3643 with modular compliance rules and identity management. Every compliance check visible in dashboards runs through SMART Protocol validation logic.
Compliance engine: The policy enforcement system that evaluates every transfer against configurable rules before execution. Non-compliant transactions revert automatically. Observability dashboards track rule evaluation latency, pass rates, and rejection reasons for troubleshooting and audits.
Factory contract: A smart contract template that deploys new asset tokens with pre-configured compliance and governance structures, accelerating time to market. Deployment metrics (time to issue, configuration errors) feed into operational dashboards.
Settlement and operations
Traditional settlement introduces counterparty risk and multi-day delays. DALP uses atomic DvP settlement through secure vaults to eliminate these friction points. When you monitor settlement latency in observability dashboards, you're watching these mechanisms execute in real time—typically under two seconds per transaction.
T+0 settlement: Same-day settlement where ownership transfers complete on the day of the transaction, versus traditional T+2 (two business days after trade date). DvP mechanisms in DALP achieve settlement in seconds, surfacing latency metrics in performance dashboards.
Atomic settlement / DvP (Delivery versus Payment): Simultaneous exchange where the asset and payment both complete or both fail together, eliminating counterparty risk during settlement windows. DALP vaults hold assets and payment tokens until both parties meet conditions—dashboards show vault utilization and settlement success rates.
Stablecoin: A cryptocurrency pegged to fiat currency (like USD) at a 1:1 ratio, typically backed by reserves. Enables on-chain payments and settlement within DvP vaults. Liquidity and reserve metrics appear in treasury dashboards.
Gas fee: Transaction cost on a blockchain network, paid to validators who process and confirm transactions. Observability dashboards track gas consumption per operation type (transfer, yield distribution, redemption) to optimize transaction batching and cost efficiency.
Corporate actions
Automated yield distribution and corporate action processing distinguish DALP from basic tokenization platforms. These capabilities execute through smart contracts that enforce fairness and auditability—every coupon payment, NAV update, or redemption generates events and metrics visible in lifecycle dashboards.
Coupon payment: Periodic interest payment on a bond, distributed to all token holders proportionally to their holdings. DALP's yield management module automates distribution through smart contracts, surfacing payment schedules, execution status, and recipient breakdowns in observability dashboards.
NAV (Net Asset Value): The per-share value of a fund, calculated by dividing total assets minus liabilities by the number of shares outstanding. NAV updates trigger revaluation events tracked in fund performance dashboards, feeding into redemption calculations.
Cap table: Capitalization table showing all holders of an asset and their ownership percentages. Blockchain provides real-time cap table visibility—DALP dashboards offer live views of holder distributions, concentration metrics, and transfer velocity.
Redemption: The process of converting tokens back to cash or underlying assets, typically at maturity for bonds or upon fund exit. Redemption workflows in DALP use DvP vaults to ensure atomic exchange, with success rates and settlement times tracked in lifecycle dashboards.
Regulatory frameworks
Operating across jurisdictions requires navigating different regulatory regimes. These frameworks shape compliance rule configuration in DALP—when you review compliance dashboards segmented by jurisdiction, you're seeing how these regulations translate into automated policy enforcement.
MiCA (Markets in Crypto-Assets): European Union regulation providing comprehensive framework for crypto-assets including security tokens and stablecoins. Compliance rules for EU investors enforce MiCA requirements at transfer time.
Regulation D: US SEC rule allowing private securities offerings to accredited investors without full registration requirements. Identity claims capture Reg D eligibility, enabling automated checks that appear as rule evaluations in compliance dashboards.
Regulation S: US SEC rule permitting securities offerings outside the United States without registration, subject to restrictions. Geographic claims and holding period rules enforce Reg S compliance automatically.
MAS (Monetary Authority of Singapore): Singapore's central bank and financial regulatory authority, which has established clear frameworks for digital assets. MAS-compliant deployments configure jurisdiction-specific rules visible in regional compliance dashboards.
Security and custody
Institutional custody demands defense-in-depth: multisig controls, HSM key storage, and granular RBAC permissions. DALP vaults implement these safeguards while remaining auditable through observability dashboards that track signing operations, key rotation, and access patterns.
Multi-signature wallet (multisig): A wallet requiring multiple private key signatures to authorize transactions, implementing maker-checker controls and segregation of duties. DvP vaults use multisig for treasury operations—dashboards track signature collection latency and approval workflows.
Hardware Security Module (HSM): Tamper-resistant physical device that securely stores cryptographic keys and performs signing operations, meeting bank-grade security requirements. Observability dashboards monitor HSM health, signing latency, and key usage patterns for anomaly detection.
Role-based access control (RBAC): Permission system where user capabilities are determined by assigned roles, ensuring proper segregation of duties. RBAC policies govern who can issue assets, approve transfers, or configure compliance rules—access logs and permission audits appear in security dashboards.
Private key: Cryptographic secret that controls access to a blockchain wallet. Losing the private key means losing access to assets permanently. Institutional deployments store keys in HSMs and enforce key rotation policies tracked through security dashboards.
Where to next
- Introduction – Start with what tokenization means for your business
- Market challenges – Understand the pain points ATK addresses
- Architecture section – Dive deeper into technical implementation