Glossary

Stablecoin and payments terms, defined

The vocabulary behind regulated stablecoin settlement, written for teams evaluating infrastructure.

CASP (Crypto-Asset Service Provider)→

A CASP is a firm authorised under MiCA to provide crypto-asset services such as custody, exchange and transfers, with authorisation granted by a national regulator that lists exactly which services the firm may provide.

MiCA (Markets in Crypto-Assets)→

MiCA is the European Union regulation that sets harmonised rules across member states for issuing crypto-assets and for providing crypto-asset services such as custody, exchange and transfers.

E-money token (EMT)→

An e-money token is a type of stablecoin defined under MiCA that references a single official currency, such as the euro or the US dollar, and carries a redemption right at par against its issuer.

Asset-referenced token (ART)→

An asset-referenced token is a type of stablecoin defined under MiCA that references a basket of assets, several currencies, or other references, rather than a single official currency.

Stablecoin→

A stablecoin is a crypto-asset designed to hold a steady value by referencing an external asset, usually an official currency such as the euro or the US dollar, which is what makes it usable for payments rather than speculation.

On-ramp→

An on-ramp is the path that converts fiat currency into stablecoins, letting value enter stablecoin rails.

Off-ramp→

An off-ramp is the path that converts stablecoins back into fiat currency, delivered into a bank account or payout method.

Settlement→

Settlement is the point at which a payment is final and the value is available to the recipient.

Correspondent banking→

Correspondent banking is the traditional system where banks move money across borders by chaining together relationships between intermediary banks.