# Digital Asset Glossary The Taurus digital asset glossary defines the terms banks and regulated financial institutions use when evaluating digital asset custody, tokenization, trading, and settlement: from hardware security modules and air-gapped cold storage to tokenized deposits and post-quantum cryptography. Each entry opens with a plain-language definition, then explains why the concept matters in a banking-grade deployment. ## Custody and key management - [Custody technology provider](https://www.taurushq.com/glossary/custody-technology-provider/): A custody technology provider supplies the software and hardware stack… - [Digital asset custody](https://www.taurushq.com/glossary/digital-asset-custody/): Digital asset custody is the safekeeping of the private keys… - [Hardware security module (HSM)](https://www.taurushq.com/glossary/hardware-security-module-hsm/): A hardware security module (HSM) is a tamper-resistant physical device… - [Key backup and recovery](https://www.taurushq.com/glossary/key-backup-and-recovery/): Key backup and recovery is the controlled duplication of private… - [Key ceremony](https://www.taurushq.com/glossary/key-ceremony/): A key ceremony is the formal, witnessed, and documented procedure… - [Multi-party computation (MPC)](https://www.taurushq.com/glossary/multi-party-computation-mpc/): Multi-party computation (MPC) is a cryptographic technique that splits a… - [Multisignature (multisig)](https://www.taurushq.com/glossary/multisignature-multisig/): Multisignature (multisig) is an on-chain mechanism requiring several distinct private… - [Private key](https://www.taurushq.com/glossary/private-key/): A private key is the cryptographic secret that authorizes transactions… - [Private key sovereignty](https://www.taurushq.com/glossary/private-key-sovereignty/): Private key sovereignty means a bank keeps exclusive, provable control… - [Quorum approval](https://www.taurushq.com/glossary/quorum-approval/): Quorum approval requires a defined minimum number of authorized approvers… - [Segregated and omnibus wallets](https://www.taurushq.com/glossary/segregated-and-omnibus-wallets/): A segregated wallet holds one client's assets under a dedicated… - [Wallet-as-a-service (WaaS)](https://www.taurushq.com/glossary/wallet-as-a-service-waas/): Wallet-as-a-service (WaaS) provides wallet creation, key management, and transaction capabilities… ## Cold storage and air gap - [Air gap](https://www.taurushq.com/glossary/air-gap/): An air gap is the isolation of a system from… - [Cold storage](https://www.taurushq.com/glossary/cold-storage/): Cold storage is a custody configuration that precludes automated, programmatic… - [Data diode](https://www.taurushq.com/glossary/data-diode/): A data diode is a hardware device that physically permits… - [Hot wallet](https://www.taurushq.com/glossary/hot-wallet/): A hot wallet is a wallet whose signing keys are… - [Physical air gap](https://www.taurushq.com/glossary/physical-air-gap/): A physical air gap means the signing environment has zero… - [Technical air gap](https://www.taurushq.com/glossary/technical-air-gap/): A technical air gap isolates the signing environment behind a… - [Warm wallet](https://www.taurushq.com/glossary/warm-wallet/): A warm wallet sits between hot and cold: keys are… ## Tokenization - [Central bank digital currency (CBDC)](https://www.taurushq.com/glossary/cbdc/): A central bank digital currency (CBDC) is digital money issued… - [CMTAT](https://www.taurushq.com/glossary/cmtat/): CMTAT, the Capital Markets and Technology Association Token, is an… - [ERC-1400](https://www.taurushq.com/glossary/erc-1400/): ERC-1400 is a family of Ethereum standards for security tokens… - [ERC-3643](https://www.taurushq.com/glossary/erc-3643/): ERC-3643 is an Ethereum token standard for permissioned tokens: every… - [Permissioned blockchain](https://www.taurushq.com/glossary/permissioned-blockchain/): A permissioned blockchain restricts who may operate nodes, validate transactions… - [Smart contract](https://www.taurushq.com/glossary/smart-contract/): A smart contract is code deployed on a blockchain that… - [Stablecoin](https://www.taurushq.com/glossary/stablecoin/): A stablecoin is a blockchain token designed to hold a… - [Token standard](https://www.taurushq.com/glossary/token-standard/): A token standard is a published smart contract interface that… - [Tokenization](https://www.taurushq.com/glossary/tokenization/): Tokenization is the issuance of a blockchain token that represents… - [Tokenized deposit](https://www.taurushq.com/glossary/tokenized-deposit/): A tokenized deposit is a commercial bank deposit represented as… - [Tokenized securities](https://www.taurushq.com/glossary/tokenized-securities/): Tokenized securities are regulated financial instruments, equity, debt, structured products… ## Trading and settlement - [Collateral management (digital assets)](https://www.taurushq.com/glossary/collateral-management/): Digital asset collateral management is the pledging of digital assets… - [Counterparty risk (digital assets)](https://www.taurushq.com/glossary/counterparty-risk/): Counterparty risk is the exposure that the other side of… - [Institutional staking](https://www.taurushq.com/glossary/institutional-staking/): Institutional staking is the participation in proof-of-stake network validation using… - [Off-exchange settlement](https://www.taurushq.com/glossary/off-exchange-settlement/): Off-exchange settlement lets institutions trade on venues without pre-funding them… - [Settlement finality](https://www.taurushq.com/glossary/settlement-finality/): Settlement finality is the point at which a transfer becomes… ## Post-quantum security - [Cryptographic agility](https://www.taurushq.com/glossary/cryptographic-agility/): Cryptographic agility is the ability to replace cryptographic algorithms in… - [Harvest now, decrypt later](https://www.taurushq.com/glossary/harvest-now-decrypt-later/): Harvest now, decrypt later is an attack in which adversaries… - [Hash-based signatures](https://www.taurushq.com/glossary/hash-based-signatures/): Hash-based signatures, including SLH-DSA (FIPS 205), LMS, and HSS, derive… - [ML-DSA](https://www.taurushq.com/glossary/ml-dsa/): ML-DSA, standardized as FIPS 204, is the primary NIST post-quantum… - [ML-KEM](https://www.taurushq.com/glossary/ml-kem/): ML-KEM, standardized as FIPS 203, is the NIST post-quantum key… - [Post-quantum cryptography (PQC)](https://www.taurushq.com/glossary/post-quantum-cryptography/): Post-quantum cryptography (PQC) is the family of cryptographic algorithms designed… ## Compliance and deployment - [CMTA DACS](https://www.taurushq.com/glossary/cmta-dacs/): The CMTA Digital Assets Custody Standard (DACS) is the Capital… - [DORA](https://www.taurushq.com/glossary/dora/): DORA, the EU Digital Operational Resilience Act, applies since January… - [FIPS 140](https://www.taurushq.com/glossary/fips-140/): FIPS 140 is the US government standard for validating cryptographic… - [ISAE 3402](https://www.taurushq.com/glossary/isae-3402/): ISAE 3402 is the international assurance standard under which an… - [Know your transaction (KYT)](https://www.taurushq.com/glossary/know-your-transaction-kyt/): Know your transaction (KYT) is the continuous screening of blockchain… - [MiCA](https://www.taurushq.com/glossary/mica/): MiCA, the EU Markets in Crypto-Assets Regulation, creates a unified… - [Multi-cloud deployment](https://www.taurushq.com/glossary/multi-cloud-deployment/): Multi-cloud deployment runs a platform across several cloud providers at… - [On-premises custody](https://www.taurushq.com/glossary/on-premises-custody/): On-premises custody runs the custody platform inside the bank's own… - [Sovereign deployment](https://www.taurushq.com/glossary/sovereign-deployment/): Sovereign deployment runs the entire custody stack, policy engine, transaction… - [Swift ledger](https://www.taurushq.com/glossary/swift-ledger/): Swift ledger is a blockchain-based shared ledger announced at Sibos… - [Travel Rule](https://www.taurushq.com/glossary/travel-rule/): The Travel Rule, from FATF Recommendation 16, requires financial institutions… Each entry has a markdown twin at https://www.taurushq.com/glossary//index.html.md Learn more: https://www.taurushq.com/glossary/