A settlement mechanism where all parts of a transaction are either fully completed or fully not completed — there is no intermediate state of 'I paid but the counterparty didn't deliver.' Blockchain smart contracts natively support <a href="/en/glossary/institutional/atomic-settlement/" target="_blank">Atomic Settlement</a>, making it one of the most significant efficiency advantages over traditional T+2 settlement.

Digital currency issued directly by a central bank — the digital version of traditional banknotes and coins, backed by sovereign credit. CBDCs come in two types: retail (digital cash replacement for individuals) and wholesale (large-value settlement tool between institutions). In the RWA context, wholesale CBDCs are seen as a key catalyst for tokenized asset large-scale institutional adoption — they can replace USDC as a safer settlement medium for tokenized asset transactions.

Services provided by qualified institutions to safeguard digital assets (private keys or token holding records) on behalf of clients. In the RWA context, institutional custodians like Coinbase Prime, Fireblocks, and BitGo provide AML/KYC-compliant, insured, and regulatory-compliant digital asset safekeeping services. Coinbase Prime provides custody for the Better × Coinbase Bitcoin mortgage program; Securitize's KYC whitelist system is also a form of 'identity layer' custody.

A blockchain network where only pre-approved, identity-verified participants can join, read, or write. Institutions typically adopt this architecture for RWA because it satisfies KYC/AML compliance requirements, protects transaction privacy, and allows regulatory oversight.

Prime brokerage is a bundled one-stop-shop service platform that financial institutions provide to large clients such as hedge funds and asset managers — combining trade execution, custody, lending, clearing and settlement, and compliance reporting. In crypto and RWA, a prime broker lets institutional clients access multiple exchanges, OTC liquidity, and on-chain assets through a single gateway, without managing fragmented accounts and keys across a dozen platforms. Coinbase Prime, BitGo Prime, and Anchorage are the leading crypto prime brokers.

In tokenized assets, the transfer agent simultaneously maintains 'on-chain <a href="https://claude-me.com/en/glossary/core-concepts/token/">Token</a> holding records' and the 'traditional legal shareholder registry,' ensuring consistency between both systems. In the US, transfer agents must register with the SEC (SEC-registered Transfer Agent). Securitize is currently the RWA market's most important tokenized transfer agent, providing KYC whitelist and shareholder registry services for Franklin BENJI, BlackRock BUIDL, and Ondo OUSG simultaneously — effectively the RWA market's 'DTCC.'

A tokenized deposit is a commercial bank's issuance of a customer's legal bank deposit as a token on a permissioned blockchain. It is fundamentally a digital onchain representation of a traditional bank deposit, not a new form of money. Holding a tokenized deposit gives you the same legal status as a regular demand deposit: you are an unsecured creditor of the bank, protected by deposit insurance within applicable limits. The purpose of tokenization is to shift fund transfers and settlement from traditional T+2 batch clearing to instant (or atomic) onchain execution, dramatically reducing friction and cost in cross-border institutional transfers. Key examples: JPMorgan's JPM Coin (institutional B2B cross-border settlement, launched 2019), Citi Token Services (trade finance and cash management), and the tokenized deposit network JPMorgan, Citibank, and Bank of America announced plans to co-build (announced 2026). Tokenized deposits, stablecoins (USDC), and CBDCs are three distinct forms of "digital dollar" — understanding the differences is foundational to analyzing the onchain monetary ecosystem.

Tokenizing listed company stock ownership onto blockchain, allowing investors to trade stocks 24/7 outside traditional exchange hours, hold fractional shares of high-priced stocks, and integrate stocks into DeFi protocols. Representative products: Kraken's xStocks, Backed Finance, Ondo Finance's forthcoming tokenized equities.