NexBridge Glossary

Key terms and definitions for understanding digital assets, regulation, and the NexBridge ecosystem.

A
AMLAnti-Money Laundering

Laws and procedures designed to prevent the use of financial systems for money laundering or terrorist financing.

B
Best Execution Model

A framework ensuring client trades are executed at the most favorable terms available, minimizing slippage and protecting investors.

C
Collateral

Assets pledged to secure a financial position, often used in lending or settlement.

CNADComisión Nacional de Activos Digitales

The regulatory authority in El Salvador supervising digital asset issuances and compliance.

Custodian

A regulated institution safeguarding the underlying real-world assets.

D
DASPDigital Asset Service Provider

Licensed entities authorized to operate exchanges, custody, or distribution of regulated digital assets.

K
KYCKnow Your Customer

Regulatory process of verifying client identity before allowing financial transactions.

L
Liquid Network

A Bitcoin Layer-2 sidechain developed by Blockstream, designed for fast, confidential, and secure settlement of digital assets.

N
NAVNet Asset Value

The per-token value of underlying assets minus liabilities and fees, calculated daily.

O
OTC Desk

A regulated primary market service enabling direct subscriptions and redemptions outside public order books.

P
Proof of ReservesPoR

Cryptographic or audited evidence showing that an issuer holds the assets backing its tokens.

R
Redemption

The act of exchanging tokens back for the underlying asset or cash equivalent.

RIDRelevant Information Document

A regulated disclosure document required under El Salvador's Digital Asset Issuance Law, equivalent to a term sheet or prospectus.

S
Self-Custody

Holding digital assets directly in one's own wallet, rather than with a custodian.

Serial Issuer

A regulated entity authorized to launch multiple digital asset products under the same legal framework.

T
T+1

Settlement cycle where trades are finalized one business day after the transaction date.

Tokenization

The process of converting rights to an asset into a digital token on blockchain.

Transfer

The process of moving digital assets from one wallet to another within the blockchain network.

W
"What you see is what you get" pricing

Transparent execution where fees and pricing are disclosed upfront with no hidden costs.

Whitelisted Wallet

A digital wallet address approved through KYC/AML checks, authorized to receive and redeem regulated tokens.