On-Chain Asset

Definition ∞ An On-Chain Asset is a digital representation of value or ownership that exists directly and is managed entirely on a blockchain’s distributed ledger. Its existence, transfer, and inherent properties are cryptographically secured and verified by the immutable rules of the underlying network. This type of asset contrasts with off-chain assets, which rely on external systems for their validity and record-keeping.
Context ∞ The precise classification and evolving regulatory treatment of on-chain assets are subjects of ongoing debate and legislative development across global jurisdictions. Reports frequently discuss the legal implications of asset tokenization and the technical standards that define different categories of on-chain assets. This impacts market structure, investor protections, and the broader digital economy.