Digital Asset Contracts

Definition ∞ Digital asset contracts are programmable agreements executed on a blockchain, typically through smart contracts, that govern the ownership, transfer, or use of digital assets. These contracts automatically enforce their terms without intermediaries once specified conditions are met. They provide a transparent and immutable record of asset interactions and rights. Such contracts reduce counterparty risk and operational overhead.
Context ∞ The proliferation of digital asset contracts is a primary driver of innovation in decentralized finance (DeFi) and tokenized real-world assets. Regulatory bodies are examining how existing contract law applies to these digital agreements, especially concerning legal enforceability and consumer protection. Their development continues to redefine financial and legal frameworks.