Digital Assets are innovative alternatives to traditional financial instruments – and have the potential to revolutionize the entire capital market infrastructure
What are Digital Assets?
Digital Assets are digital representations of assets that are not issued or guaranteed by a central bank or a public authority. Even though they do not have legal tender status in most countries, they can be accepted as a medium of exchange or payment. Digital Assets thus describe a new asset class, which consists of cryptocurrencies (such as Bitcoin or Ether), other tokenized assets and – specific to German law – crypto-securities. Enhanced regulatory initiatives for Digital Assets strengthen consumer and investor protection and are expected to even increase the use of Digital Assets as investment vehicles. As a result, Digital Assets are becoming more attractive not only for private but also for institutional investors.
Don’t miss our BankingHub article “Digital Assets – what is it all about? Definition and development of a market that will be worth billions”