The term "securities" refers to negotiable financial instruments that hold a type of monetary value. Securities represent tradeable financial instruments used to raise capital in public and private markets. Equity is a type of security that provides ownership rights to the equity holders (e.g., shares of stock). In the United States, public sales of securities are regulated by the U.S. SEC.

Xalte's listed alternative assets are securities and are regulated by the U.S. SEC.

The list of authorized National Securities Exchanges (NSEs) is located at the following link and is managed by the U.S. Securities and Exchange Commission.
(Reference: https://www.sec.gov Last Verified 19-July-2023)‍

The National Securities Exchanges (NSEs) are identified as self-regulatory organizations (SROs). SROs create and publish their rules to establish and measure market integrity and investor protection.
(Reference: https://www.investor.govLast Verified 19-July-2023)

Fungible Assets are assets or goods that can be interchanged with other individual assets or goods of the same type and specification.  Fungible Assets simplify the exchange and trade processes associated with execution, clearing, and settlement because fungibility implies equal value between the assets.

For example, commodities that meet contract-defined grades / specifications are fungible because the origination location and methods satisfy the published product requirements.  Therefore, each individual commodity (e.g., carbon unit) fulfilling a future contract specification has an equivalent traded value.

Xalte's listed environmental asset products are considered fungible and are thus commodities under the laws of the United States.

Designated Contract Markets (DCMs) are exchanges that may list for trading futures or option contracts based on all types of commodities and that may allow access to their facilities by all types of traders, including retail customers. Some DCMs have been operating for many years as traditional futures exchanges, while others are new markets that were only recently designated as contract markets by the CFTC.
‍(Reference: https://www.cftc.gov/Last Verified 17-January-2024)

Xalte’s environmental commodities products will be listed on a DCM.

Futures Contracts are agreements between two parties where both parties agree to buy and sell a particular commodity or stock of a specific quantity and predetermined price at a specified date in the future.

Security futures products may be traded on U.S. Commodity Futures Trading Commission (CFTC) designated contract markets that are also notice registered with the Securities and Exchange Commission (SEC) as a securities exchange.  In addition, security futures products may be traded on any SEC-registered national securities exchange that is notice designated as a contract market by the CFTC.
‍(Reference: https://www.cftc.govLast Verified 19-July-2023)

Xalte’s approach enables the trading of carbon units as commodities through the use of futures contracts and regulatory oversight from the U.S. CFTC.

Alternative assets like iconic paintings, collectible baseball cards, and unique vehicles are non-fungible because each asset has unique qualities that add or subtract value relative to other asset valuations.

Xalte’s approach to securitizing, fractionalizing, and listing alternative assets creates fungible shares of the asset that offer investors ownership opportunities of equal value for each share.

Xalte’s approach to securitizing assets via an ownership vehicle enables the trading of shares, representative of the physical asset. Ownership of alternative assets listed with Xalte function similar to ownership of a company's stock listed on a public exchange, such as a company that is part of the S&P 500 index.

Equities in trading are portions of ownership in public-listed companies. Equity is bought and sold in the form of shares or stocks issued by the company. Buying equities is buying partial ownership of the company.