Address
A unique identifier on a DLT platform. Similar to an
account number for a bank account.
Allowance
Authorisation in the ERC-20 token standard that
allows an address to transfer tokens controlled by
one address to another address. Similar to a direct
debit authorisation for a bank account.
AML/CTF (Anti-Money Laundering and
Counter Terrorism Financing)
Processes to identify, mitigate and manage the
risk of products or services being used for money
laundering or terrorism financing.
API (Application Programming Interface)
Set of defined rules and protocols that are used to
allow applications and systems to communicate
with each other.
Atomic settlement
Process where settlement occurs in an integrated
fashion, such that it is technologically infeasible for
one leg of a transaction to occur without the other.
ASIC (Australian Securities and Investments
Commission)
Australia’s integrated corporate, markets, financial
services and consumer credit regulator.
Blockchain
A form of distributed ledger technology where
transactions are stored in a growing list of
blocks that are securely linked together via
cryptographic hashes.
AUSTRAC (Australian Transaction Reports and
Analysis Centre)
Australia’s financial intelligence unit and anti-
money laundering and counter-terrorism
financing regulator.
CBDC (Central Bank Digital Currency)
Currency issued in digital form by a central bank.
CDD (Customer Due Diligence)
Processes to collect and evaluate information
about a customer’s risk of illicit activity.
Clearing
The process of transmitting, reconciling and, in
some cases, confirming transactions prior to
settlement, potentially including the netting of
transactions and the establishment of final
positions for settlement.
Crypto-asset
A type of private sector digital asset that depends
primarily on cryptography and distributed ledger
or similar technology.
Custodian
An entity that safekeeps and administers
securities or other assets for its customers and
that may provide various other services, including
clearing and settlement, cash management,
foreign exchange transactions, securities lending
and collateral management.
Custody
The safekeeping and administration of securities
or other assets on behalf of others.
Digital asset
A digital representation of value that can be
digitally traded, transferred or used for payment.
DLT (Distributed Ledger Technology)
Protocols and supporting infrastructure
that allow computers in different locations
to propose and validate transactions and update
records in a synchronised way across a network.
DvP (Delivery versus Payment)
A settlement mechanism that links an asset
transfer and a funds transfer in such a way as to
ensure that delivery occurs if and only if the
corresponding payment occurs.
ERC-20
A technical standard for fungible tokens used in
Ethereum and related systems.
ESA (Exchange Settlement Account)
An account held at the Reserve Bank of Australia
by financial institutions to settle financial
obligations arising from the clearing of payments.
Glossary
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