Glossary of terms

  • Updated

This glossary explains the terms you'll see most often across STOKR's platform and Help Center.

Digital security (security token) – a financial instrument, such as equity, a bond, or a revenue participation, issued and recorded on a blockchain within a regulated framework. STOKR's standard term for what is also known as a security token.

Security token offering (STO) – a regulated capital-raising process in which an issuer offers digital securities to investors.

Distributed ledger technology (DLT) / blockchain – a system in which transaction records are maintained across a network of computers rather than by a single central administrator.

Liquid Network – the Bitcoin sidechain STOKR uses exclusively for issuing digital securities.

Liquid Bitcoin (L-BTC) – a representation of Bitcoin on the Liquid Network.

Issuer – an asset manager, fund manager, or similar entity that issues digital securities and raises capital through STOKR.

Investor – a qualified or professional individual or entity that invests through STOKR by transferring crypto-assets or fiat currency in exchange for digital securities.

Qualified investor – an investor who meets the eligibility criteria set by applicable securities regulation.

Professional investor – an investor classified as a professional client under MiFID II, based on experience, knowledge, and financial standing.

Institutional investor – an organisation investing on behalf of its members or clients, such as a pension fund, bank, or asset manager.

Settlement – the process of transferring ownership of a digital security, and the corresponding payment, typically recorded on the blockchain.

Custody – the safekeeping and administration of crypto-assets or digital securities, including private-key management where applicable.

Primary market – the market in which newly issued digital securities are sold directly to investors for the first time.

Secondary market – the market in which previously issued digital securities are traded between investors.

Wallet – a software or hardware tool for storing the cryptographic keys used to manage and transfer crypto-assets and digital securities.

Private key – a cryptographic key that gives exclusive control over the assets at a corresponding address. Never share your private key with anyone.

AMP wallet / AMP ID – the wallet application and account identifier used to manage digital securities issued through Blockstream AMP on the Liquid Network.

Liquid Address – a specific address on the Liquid Network used to send and receive digital securities and other Liquid Network assets.

Whitelisted – the status of an investor who has completed registration and KYC verification and linked a wallet, allowing them to hold or receive a specific digital security.

Investment period – the window during which an offering is open and investor funds are held in custody.

Redemption – the process by which an investor returns digital securities in exchange for a payout, as configured by the issuer.

Travel Rule (TFR) – the EU Transfer of Funds Regulation requirement for CASPs and VASPs to exchange originator and beneficiary information when transferring crypto-assets.

CASP (Crypto-Asset Service Provider) – an entity authorised under the EU's Markets in Crypto-Assets Regulation (MiCA) to provide crypto-asset services such as custody, administration, and transfer. STOKR is a registered CASP.

Payment Institution (PI) – an entity authorised to provide payment services. STOKR is a registered Payment Institution with the Luxembourg CSSF.

CSSF – Commission de Surveillance du Secteur Financier, Luxembourg's financial supervisory authority.

Prospectus – a formal legal document describing a securities offering, required under EU law for public offers above certain thresholds.

AML / KYC – Anti-Money Laundering and Know Your Customer: the identity verification and monitoring requirements STOKR applies to every investor.

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