What is a digital asset?

A digital asset is something that has value and exists only in digital form. Unlike physical forms like cash or coins, it is recorded and tracked on a secure system called a distributed ledger (most commonly a blockchain). Digital assets differ from traditional forms of money, such as U.S. dollars or government-issued foreign currencies. They are created, stored, and transferred electronically. People can buy, sell, or exchange them online, and their ownership is verified through the blockchain.

Examples of digital assets include:

• Cryptocurrencies like Bitcoin or Ethereum.

• Stablecoins that are tied to the value of traditional money.

NFTs (Non-Fungible Tokens) represent unique digital assets, such as art or music.