The Plain-English Glossary
Demystifying the jargon of traditional finance and the digital asset economy — plain definitions for every term.
These terms explain how money works.
But understanding money isn't just definitions — it's understanding the tradeoffs behind them: control vs. convenience, flexibility vs. discipline, growth vs. protection.
A
American Bankers Association (ABA)
The main lobbying group representing traditional banks in Washington.
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Blockchain
A shared, unchangeable digital ledger that records transactions instantly across a network of computers.
Read full article →BNY Mellon
America's oldest bank and the world's largest custodian, holding trillions in traditional assets.
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CLARITY Act
Proposed legislation attempting to provide clear regulatory frameworks for digital assets.
Read full article →Correspondent Banking
A system where banks maintain accounts at other banks in foreign countries to facilitate international transactions on behalf of customers.
Read full article →Crypto Company
A business building infrastructure, wallets, or exchanges for digital assets.
Read full article →Crypto Custodian
A specialized entity responsible for safely holding and securing digital assets on behalf of clients.
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A digital marketplace where you can buy, sell, and trade cryptocurrencies and stablecoins.
Read full article →Cryptocurrency
A digital or virtual currency secured by cryptography and based on blockchain networks.
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DeFi (Decentralized Finance)
Financial services built on blockchains that operate without traditional intermediaries like banks.
Read full article →Digital Dollar
A digital representation of the US Dollar, often referring to a Central Bank Digital Currency (CBDC) or a private stablecoin.
Read full article →Digital Wallet
Software that allows you to store, send, and receive digital currency directly.
Read full article →DTCC
The Depository Trust & Clearing Corporation; the hidden plumbing of Wall Street that settles traditional trades.
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Financial Friction
The delays, fees, and intermediaries that slow down the movement of money in the traditional system.
Read full article →Fractional Reserve Banking
The banking system used by most commercial banks worldwide, where banks keep only a fraction of customer deposits on hand as reserves and lend out the rest to generate profit.
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GENIUS Act
Legislative proposal focused on regulating how digital assets are integrated into the economy.
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Lobbyist
Professionals hired to influence politicians and lawmakers on behalf of an industry (like banking or crypto).
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Remittance
Money sent by a person working in one country back to family or dependents in another country. Remittances are a major source of income for many developing nations, but traditional transfer services charge fees that can consume 5 to 10 percent of the amount sent.
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Smart Contract
Self-executing code on a blockchain that automatically runs when certain conditions are met.
Read full article →Stablecoin
A digital currency pegged to a stable asset, like the US Dollar, to prevent price volatility.
Read full article →SWIFT
The Society for Worldwide Interbank Financial Telecommunication — the global messaging network that banks use to send instructions for international money transfers. SWIFT sends messages but does not move money itself.
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Tokenization
The process of converting rights to a real-world asset into a digital token on a blockchain.
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USDC
A prominent stablecoin fully backed by US Dollars and short-term US Treasury bonds.
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XRP
A digital asset designed primarily to facilitate fast, low-cost cross-border payments between financial institutions.
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Yield
The return or interest earned on an investment or deposit over a specific period.
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