Glossary

A

AML (Anti-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.

Blockstream: A leading Bitcoin infrastructure company that develops technologies such as the Liquid Network and AMP (Asset Management Platform). NEXBRIDGE leverages Blockstream’s technology to issue and manage regulated digital assets on Bitcoin Layer 2.

C

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

CNAD (Comisión Nacional de Activos Digitales): The regulatory authority in El Salvador supervising digital asset issuances and compliance.

Custodian: A regulated financial institution responsible for safeguarding the underlying real-world assets.

D

DASP (Digital Asset Service Provider): Licensed entities authorized to operate exchanges, custody, or distribution of regulated digital assets.

K

KYC (Know Your Customer): Regulatory process of verifying client identity before allowing financial transactions.

KYB (Know Your Business): Regulatory process of verifying the identity, ownership structure, and legitimacy of corporate clients before granting access to financial services.

L

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

N

NAV (Net Asset Value): The per-token value of underlying assets minus liabilities and fees, calculated daily.

O

OTC Desk (Over-the-Counter Desk): A regulated primary market service enabling direct subscriptions and redemptions outside public order books.

P

Proof of Reserves (PoR): Cryptographic or audited evidence showing that an issuer holds the assets backing its tokens.

R

Redemption: The process of exchanging tokens back for the underlying asset or cash equivalent.

RID (Relevant 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.

Settlement (T+1 / Instant on Liquid): The cycle in which trades are finalized. T+1 means settlement one business day after the transaction; on Liquid Network, settlement can be instant.

T

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.