These are financial instruments that exist and are traded exclusively in digital form, often secured by cryptographic methods and recorded on distributed ledgers. They represent various forms of value, including cryptocurrencies, stablecoins, and tokenized traditional assets like stocks or real estate. Their ownership and transfer are typically managed through blockchain technology.
Context
The expanding category of digital financial assets is a constant subject in financial news, driven by their increasing adoption and evolving regulatory treatment. Discussions often center on their classification, market volatility, and their potential to redefine global financial systems and investment opportunities.
The BoE is architecting RTGS interoperability with DLT platforms to enable atomic settlement and unlock significant capital efficiencies across the financial ecosystem.
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