Digital assets are electronic records that represent ownership or rights to value.
They include:
Cryptocurrencies such as bitcoin and ether, which function as mediums of exchange and stores of value;
Digital tokens representing securities or other financial instruments, including tokenized equity or debt;
Non-fungible tokens (NFTs) that represent unique digital items like art, collectibles or real-world assets;
Personal digital property such as photos, videos, email accounts, social-media profiles and domain names;
Digital wallets and accounts through which users hold and transact in digital assets.
Related questions
What are examples of digital assets? Examples include cryptocurrencies (bitcoin, ether), utility tokens used on blockchain platforms, tokenized securities issued by companies on distributed ledgers, NFTs representing artwork or real estate interests, digital music libraries, cloud-storage accounts, domain names and social-media profiles.
What are considered digital assets? Any electronic record in which a person has a right or interest can be a digital asset. The term covers both financial instruments (cryptocurrencies, digital securities) and non-financial digital property (email accounts, websites). The key element is that the asset exists in electronic form and can be controlled or transferred electronically.
What does digital assets mean? The phrase refers collectively to the broad class of electronically stored assets described above. The meaning may vary depending on context; regulators often use it to refer to cryptocurrencies and blockchain-based tokens, while estate planners include email and social-media accounts.
What are financial digital assets? Financial digital assets include cryptocurrencies, stablecoins and tokenized securities that may be regulated as securities or commodities. They are tradable on platforms and may be subject to securities or commodities laws. Sadis advises clients on whether a token is a security under the Howey test and whether CFTC, SEC or FinCEN regulations apply.
What are digital marketing assets? Digital marketing assets are online materials used to promote a business, such as website content, social-media accounts, blogs, email lists and digital advertising campaigns. While they may not be “financial” digital assets, they are still valuable and should be protected through intellectual property law and contractual provisions.
Are stocks digital assets? Traditional stocks issued by corporations are typically recorded electronically through book-entry systems but are not always referred to as digital assets. However, tokenized or digitized securities issued on blockchain networks can be considered digital assets. Investors should consult counsel to determine regulatory treatment and custody options.
