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
Variable Interest Rate (Lending)
An interest rate that fluctuates based on lending pool utilization and market conditions.
Overnight Reverse Repurchase Agreement Facility (ON RRP)
A Federal Reserve tool where eligible counterparties lend cash overnight to the Fed in exchange for Treasury securities as collateral, helping to set a floor on short-term rates.
Payment Facilitator
An intermediary that verifies and settles digital asset transactions in the x402 protocol.
Proof-of-History (PoH)
A cryptographic time-stamping mechanism used by the Solana blockchain to sequence events and enable high transaction throughput with verifiable order.
Sell Side
The portion of the order book listing aggregated sell orders at various price levels.
Settlement Upon Payment
Immediate finalization of transactions upon initiation in digital systems.