The Taxonomy of Cryptoassets

Published by

Aug 30, 2019

 

 

Cryptoassets (or crypto) have garnered significant attention from the media, financial analysts, governments, regulatory institutions, and investors over the last two years.

Crypto is defined broadly as digital units of account in which cryptographic techniques are used to regulate the generation and distribution of units on a blockchain.

In practice, crypto means different things to different people: an investment asset class like commodities, a store of value like gold, a legitimate medium of exchange, a covert method of exchange, an immutable record of rights and ownership, or even an incentive mechanism like reward points.

Of the more than 2,000 cryptoassets issued or generated, many, including those with lofty valuations, do not even have a functional product associated with them.

So, is crypto a solution looking for a problem? No, there are real problems in the global financial services ecosystem that cryptoassets are looking to address.

More participation from the broader financial services ecosystem will help drive trust and scale for the tokenized economy and help the crypto market grow and mature.

If you are in this area you might be interested in finding the right service provider with the required expertise in the areas of FinTech, ICT, legal & compliance, due diligence, fund services, banking, consulting, sales & marketing, insurance, and general services like accounting and HR.

Also, participation in the right events and recruiting the right candidates with our job board might help.

Kind regards,

Martin Signer
Managing Director
 
  
 
The taxonomy of crypto assets

To list and search investments/ RFPs the asset class classification (taxonomy) of crypto assets is:

•     Cryptocurrencies (synonymous to payment token) such as bitcoin, litecoin, libra, ether, etc, are in the asset class of commodities.

•    Investment in security tokens (including stablecoins) that derive their value from a tradable asset according to the underlying investment. Typically it will be equity, private capital (this includes private equity, venture capital, private debt, infrastructure, etc.), but can also be real estate, multi-asset, fixed-income, commodities, hedge funds, or insurance-linked-securities.

•    Utility tokens are simply app coins or user tokens. They enable future access to the products or services offered by a company. If used for investing, they will be treated according to their main characteristics as a cryptocurrency or a security token.

•     Trading strategies belong to the asset class of hedge fund/trading.

 

 


 
 
 
 

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