RWA Glossary

A mechanism where a token's supply adjusts automatically to reflect value changes, often used in yield-bearing tokens like stETH or OUSG (via rOUSG) to distribute rewards directly to wallet balances.

A liquidity pool or protocol that requires users to pass KYC (Know Your Customer) and AML (Anti-Money Laundering) checks before interacting, common in institutional RWA platforms.

A US Securities and Exchange Commission (SEC) regulation that allows companies to raise capital without registering the securities, provided they sell only to accredited investors.

An SEC exemption that allows US companies to sell securities to international investors outside of the United States without registering with the SEC.

A digital representation of US Treasury bills or bonds on a blockchain. These tokens are backed 1:1 by physical securities held in a custodian bank.

Lending that takes place outside traditional banking channels. In DeFi, this involves protocols like Maple or Centrifuge connecting crypto capital to real-world borrowers.

A subsidiary company created to isolate financial risk. In RWA tokenization, an SPV often holds the physical assets to protect them from the bankruptcy of the parent company.

The instant exchange of assets (e.g., Token A for Token B) where the trade either happens completely or not at all, eliminating counterparty settlement risk.