Crypto and Digital Assets
6 articles
What a blockchain is, who is holding the asset when an exchange does, and how the regulated wrappers differ from the thing they wrap.
Foundations
Start here if the subject is new.What a Blockchain Is
A ledger maintained by many parties at once, where entries are appended in batches and the ordering is agreed by a mechanism rather than by an institution.
Custody and Keys
Whoever controls the private key controls the asset. There is no institution positioned to reverse a transfer, restore access or adjudicate a dispute.
Intermediate
Assumes the foundations above.Platforms and Counterparty Risk
A balance shown on a platform is a claim on that platform. The distinction between a claim and a holding is the subject of most of the sector's failures.
Spot Crypto ETFs
An exchange-traded wrapper holding the asset itself, traded through an ordinary brokerage account. The wrapper changes the custody and the protections, not the underlying volatility.
Stablecoins
Tokens designed to hold a constant value against a currency. What they hold behind them, and who has a claim on it, differs enormously between them.
The Regulatory Position
Which regulator covers a digital asset depends on whether it is a security, and that question has been contested in litigation for years.