Glossary of Terms
ASSET FRACTIONALISATION Fractional ownership is an investment approach that has been around for hundreds of years, in which the ownership of an asset is split between individual shareholders.
In addition, fractioning assets also introduces the notion of shared ownership where multiple people can buy together an asset and use it, which is key in a society where usage is more and more supplementing ownership.
AUCTION An auction is a sales event wherein potential buyers place competitive bids on assets or services either in an open or closed format.
BUSINESS DISRUPTION Refers to innovation (non-conventional business models/ technology) in an industry that radically changes the way all companies in that industry operate, and/or creating not only a new market but a value system.
CAPTIVE MARKET Where potential consumers face a severely limited number of competitive suppliers and repressive market dynamics; their only choices are to purchase what is available or to make no purchase at all. The term, therefore, applies to any market where there is a monopoly or oligopoly.
CENTRAL BANK DIGITAL CURRENCY (CBDC) The Fed defines it thus: “A CBDC is a digital form of central bank money that is widely available to the general public.
GLOSSARY OF TERMS "Central bank money" refers to money that is a liability of the central bank. In the United States, there are currently two types of central bank money: physical currency issued by the Federal Reserve and digital balances held by commercial banks at the Federal Reserve
While Americans have long held money predominantly in digital form—for example in bank accounts, payment apps, or through online transactions—a CBDC would differ from existing digital money available to the general public because a CBDC would be a liability of the Federal Reserve, not of a commercial bank.”
CRYPTO ASSET An asset occurring in a digital format that utilises cryptography. EXCHANGE
TRADED FUND (ETF) A type of security that tracks an index, sector, commodity, or other assets, but which can be purchased or sold on a stock exchange the same way a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities.
FIAT MONEY Is a type of money that is not backed by any commodity such as gold or silver, and typically declared by a decree from the government to be legal tender.
GLOBAL FINANCIAL CRISIS (GFC) The severe worldwide economic crisis that occurred in late 2007-08. It was the most serious financial crisis since the Great Depression. Predatory lending targeting low-income homebuyers, excessive risk-taking by global financial institutions, and the bursting of the US housing bubble culminated in a "perfect storm." Mortgage-backed securities (MBS) tied to American real estate, as well as a vast web of derivatives linked to those MBS, collapsed in value. Financial institutions worldwide suffered severe damage, reaching a climax with the bankruptcy of Lehman Brothers. GLOSSARY OF TERMS
HARD ASSET HEDGE Hard assets are physical or tangible assets that hold value and are normally held for the long term. They act as a hedge against inflation; their value changes inversely to changes in the value of soft assets and non-physical assets.
KNOW YOUR CLIENT (KYC) ‘Know Your Customer’ refers to a financial institution's obligation to verify the identity of a customer in line with the AML (‘Anti-Money laundering ‘) laws.
NON-CORRELATING INVESTMENT An asset whose value isn't tied to larger fluctuations in the traditional markets; an investment asset that can be used to hedge and/or diversify. A NON-
FUNGIBLE TOKEN Is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger. Types of NFT data units may be associated with digital files such as photos, videos, and audio. Because each token is uniquely identifiable, NFTs differ from blockchain cryptocurrencies, such as Bitcoin.
PRIVATE OFFERING The private sale of the FIX00, is offered to certain participants on an invite-only basis.
PRIVATE PLACEMENT PARTICIPANTS Means all individuals who have been formally notified inviting them to participate in the sale of the FIX00.
PURCHASE ORDERS Orders submitted by participants to purchase FIX00 utility tokens. REPRESENTATIVE DIGITAL CURRENCY Fiat money is issued by a government, while representative digital money can be backed by different assets or financial instruments.
STABLECOIN Any cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm.
TOKENISATION Tokenisation is a process where some form of asset is converted into a token that can be moved, stored, or recorded on a blockchain. creating a bridge between real-world assets and their trading, storage, and transfer in the digital world. Tokenisation in simple terms converts the value of an object like a painting or commodity into a token.
The tokenisation process marks a promising solution in converting rights to an asset into a unique digital representation.
TRANSPARENCY Distributed Ledger Technology (DLT) / Blockchain introduces transparency by default, as all transactions occurring on a Blockchain infrastructure are accessible to all its participants (limited to the perimeter of a DLT / Blockchain, meaning that everyone can see it on public Blockchains while only authorized participants can have access on private Blockchains). This property is inherited by all tokens representing assets on Blockchain.
For physical assets, this transparency allows for improved traceability and provides trust over provenance and origin, by allowing any user to review the whole history of activities performed over the asset. Ownership over a given asset and the associated chain of ownership can therefore be
UTILITY TOKEN Is a digital token of cryptocurrency that is issued in order to fund the development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency.