Digital Asset
Electronically stored items of value that can be owned, transferred, or traded, typically secured by blockchain technology for immutability and transparency.
What is Digital Asset?
A digital asset is a broad term often used synonymously with cryptocurrency, which can be owned, transferred, or traded, typically secured by blockchain technology to ensure immutability and transparency. It better reflects the diverse nature of these assets, including Bitcoin and Ethereum, stablecoins, and tokenized real-world assets (RWAs) such as real estate, commodities, or U.S. Treasury bonds.
In the U.S., the term “digital asset” is widely adopted in policy and regulatory frameworks, notably by the IRS for tax purposes (defining cryptocurrencies as property) and the SEC for securities regulation, emphasizing their role in financial markets.
Digital Asset Treasuries (DAT), such as Strategy (MSTR) and BitMine Immersion (BMNR), strategically hold digital assets as core reserves to drive shareholder value, leveraging their liquidity and global accessibility.
Related Terms
Australia Stablecoin Regulation
Australia's proposed licensing framework for digital asset platforms and stablecoin issuers under the Australian Financial Services license.
ECDSA
A cryptographic algorithm used to create digital signatures for securing and verifying transactions in blockchain networks like Ethereum.
Immutability
Immutability refers to the property of a blockchain, like Bitcoin, where once data is recorded in a block and added to the chain, it cannot be altered or deleted without consensus from the network.
PIPE
Private placement of public equity shares to accredited investors at a discount, for quick capital.
Price Oracle
A mechanism providing real-time price data for digital assets in DeFi protocols.
Decentralized Data Marketplace
A platform for trading data assets without centralized control.