The term “digital asset” is becoming more common in marketing and creative communication – and with good reason. According to Venngage, 74% of marketers now use visuals in over 70% with their content. But, regardless of the increased use of digital assets, there’s still a disconnect between what’s considered a digital asset. Would it be just any digital file? If not, what exactly are the other criteria?
In this post, we’ll explore the key elements of digital assets, how to evaluate the value of your digital assets and why digital assets are essential to your business.
Talos Trading, a technology provider for the institutional trading of digital assets, today announced the public launch of its platform that connects the diverse group of participants involved in today’s crypto-asset market structure — institutional investors, prime brokers, exchanges, OTC desks, lenders and custodians. The Talos platform, which — has been live for the last year, delivers a suite of solutions that supports clients through the full trading lifecycle — from price discovery to execution through clearing and settlement, across spot, futures and FX markets.
So, to get started on us off – what exactly are digital assets? By definition, a digital asset is “any digital material owned by an enterprise or individual including text, graphics, audio, video and animations.”
Historically, many people have considered digital assets to only include images and videos, but over time, we’ve started including other digital files inside our definition, such as documents, presentations and spreadsheets. While the definition of a digital asset is constantly changing as new digital formats are emerging in business, it’s important to remember that the file format is merely part of the definition. The other portion of the digital asset definition comes from the worthiness the asset brings to the company.
There are 3 key elements that produce any single file an electronic asset. An electronic asset must:
Be a digital file owned by an individual/company,
Provide value to the individual/company, and
Be searchable and discoverable (usually with metadata).
No geographic barriers
An investor from any part of the world can invest in digital assets without leaving their territories with the speed and security proposed by the platform.
Digital assets can enhance the liquidity of the real-world tangible assets by allowing fractional ownership and effecting transfers in one person to a new without the impediments.
The deposit and withdrawal processes are simple making the platform very user-friendly.
Easy access to data
The platform provides tremendous opportunities to trade because of its users by supplying real-time data analytics and accurate charts to gain access to historical data.
Low entry fees
As the digital asset trading platforms are automated, the trade commissions and monthly fees will be at a minimal rate. Transaction costs are low for digital assets due to removal of intermediaries, lower fees for transactions on blockchain and reduced counterparties risk.
Digital/security tokens that are represented by physical assets such as gold, can be redeemed against such physical gold or fiat.
The adoption of digital asset trading via several platforms keeps growing at an ever-increasing rate all around the world. Increased technological advancements including well-equipped security systems indicate the prospect of the rapid growth of digital asset trading platforms. Nevertheless, the lack of satisfactory knowledge and awareness about the technical nature and benefits associated with digital assets makes acts as an obstacle in the growth of the digital economy. Moreover, the Indian government’s indecisiveness in framing satisfactory regulations and policies to deal with digital assets is a major cause in hampering its growth. It could therefore be prudent for the federal government to consider adopting a phased approach in regulating digital assets instead of considering a blanket ban on a single.