Digital Assets

Digital Assets

Digital assets have become a disruptive force in the ever-changing investing world, changing how people and institutions hold, manage, and increase their money. These assets mark a notable shift from conventional investments like stocks, bonds, and real estate, opening up new opportunities and difficulties. Digital media files, online accounts, and cryptocurrencies like Bitcoin and Ethereum are just a few examples of what is referred to as digital assets.  

What are digital assets? 

A large class of intangible assets that only exist in digital form are referred to as digital assets, sometimes known as digital holdings. These assets may be exchanged, owned, and controlled via digital technology and are kept electronically. They serve as a monument to the digital era, in which data may be represented and transported in terms of ownership, value, and information. 

Three main categories may be used to categorise digital assets further: 


The most well-known digital assets are probably cryptocurrencies like Bitcoin and Ethereum. They are decentralised, digital currencies that use blockchain technology to enable secure, peer-to-peer transactions. 

Tokens and tokenised assets 

These are representations of real-world assets, such as real estate, art, or even company stocks, using blockchain technology. Tokens can be bought, sold, and traded on various digital platforms. 

Non-Fungible Tokens 

NFTs, or non-fungible tokens, are distinctive digital assets that signify ownership of a particular good or piece of material, frequently in the form of digital artwork, collectables, music, and other things. 

Understanding digital assets 

Digital assets are revolutionising the traditional financial landscape in multiple ways: 

Digital ownership 

A safe and transparent method of establishing and transferring ownership is provided by digital assets. Many digital assets are built on blockchain technology, which makes ownership records easy to verify and impervious to tampering. 

Borderless transactions 

Unlike traditional assets, digital assets can be transacted across international borders without the need for intermediaries or cumbersome paperwork. This facilitates faster and cheaper cross-border transactions. 

24/7 accessibility 

Digital assets can be traded and accessed 24/7, offering unparalleled liquidity and flexibility for investors. 

Fractional ownership 

Many digital assets allow for fractional ownership, enabling investors to own a portion of high-value assets that would be otherwise unattainable. 

Types of digital assets 

Digital assets come in various forms, each serving unique purposes and offering distinct advantages: 

  • Cryptocurrencies 

Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are digital currencies used for peer-to-peer transactions and, in some cases, as a store of value. 

  • Security tokens 

Security tokens represent ownership in traditional assets, such as company stocks, real estate, and commodities. These tokens are subject to regulatory compliance and are designed to provide investors with legal rights and protections. 

  • Utility tokens 

Within a blockchain ecosystem, utility tokens frequently have special capabilities that allow access to a certain good, service, or platform. 

  • NFTs 

NFTs are unique digital assets that signify ownership of art creations, collectibles, digital or physical products, and more. NFTs are indivisible and have established themselves as a prominent player in the market for digital collectibles and art. 

  • Stablecoin 

A form of cryptocurrency known as a stablecoin ties its value to an underlying asset, such as a fiat currency (such as the US dollar or the euro) or a commodity (such as gold), in order to reduce price volatility. 

Importance of digital assets 

Digital assets have assumed a pivotal role in the modern investment landscape for several compelling reasons: 

  • Decentralisation 

Digital assets operate on decentralised networks, reducing reliance on centralised authorities and enhancing security and transparency. 

  • Accessibility 

They offer access to global markets, enabling a more inclusive investment ecosystem by eliminating geographic barriers. 

  • Portfolio diversification 

Investment portfolios can diversify with digital assets beyond traditional assets, possibly lowering risk exposure. 

  • Liquidity 

Most digital assets offer high liquidity, allowing investors to buy and sell them quickly, enhancing flexibility. 

Examples of digital assets 

Digital assets have permeated various sectors and industries, showcasing their versatility: 

  • Bitcoin 

The first and most famous cryptocurrency, Bitcoin is often referred to as “digital gold” and has gained recognition as a store of value. 

  • Ethereum  

Ethereum is a blockchain platform that introduced smart contracts, enabling developers to create decentralised applications (DApps) and launch other tokens. 

  • Decentralised finance tokens 

Decentralised lending, borrowing, and trading are made possible via tokens linked to DeFi initiatives like Chainlink (LINK) and Aave (AAVE). 

  • RealT 

RealT is a platform that tokenizes real estate properties, allowing investors to buy and trade fractions of real estate assets. 

Frequently Asked Questions

Yes, Bitcoin is considered a digital asset. It is a blockchain-based decentralised digital money, and digital tokens serve as its ownership certificates. It can be purchased, traded, and kept electronically as a digital asset, and its ownership can be verified using cryptographic keys. Along with its usage for online transactions, bitcoin is increasingly popular as a type of digital investment and a store of wealth. 

Digital assets are not limited to specific file types. They encompass a wide range of assets, including cryptocurrencies, tokens, NFTs, documents, images, videos, and any other digital content that can be owned and traded electronically. These digital assets have value and may be used for a variety of financial, professional, and personal objectives. They can also be shared and saved. 

Digital assets and other files differ primarily in terms of ownership and transferability. While files, such personal documents or random photographs, may not always have intrinsic worth or be transferable as assets, digital assets have value and are held by persons or entities. 

Yes, NFTs are a type of digital asset. They represent unique ownership of digital or physical items, often related to digital art, collectables, music, and more. NFTs are not divisible, unlike cryptocurrencies, and cannot be traded on a one-on-one basis. They are important in the field of digital art and collectibles because of their growing popularity in authenticating and confirming the scarceness and ownership of digital content. 

It is a systematic and effective method of organising, storing, and distributing digital assets, and is known as digital asset management (DAM). DAM systems assist people and businesses in managing their digital assets by facilitating quick access to, retrieval of, and preservation of priceless digital material. 

Related Terms

    Read the Latest Market Journal

    Back in Business: The Return of IPOs & Top Traded Counters in March 2024

    Published on Apr 17, 2024 404 

    Start trading on POEMS! Open a free account here! At a glance: Major indices continue...

    Weekly Updates 15/4/24 – 19/4/24

    Published on Apr 15, 2024 67 

    This weekly update is designed to help you stay informed and relate economic and company...

    From $50 to $100: Unveiling the Impact of Inflation

    Published on Apr 12, 2024 150 

    In recent years, inflation has become a hot topic, evoking strong emotions as the cost...

    Japan’s Economic Resurgence: Unveiling the Tailwinds Behind Nikkei 225’s Record Leap

    Published on Apr 11, 2024 84 

    Source: eSignal, Intercontinental Exchange, Inc. In the heart of Japan’s economic landscape, the Nikkei 225...

    Weekly Updates 8/4/24 – 12/4/24

    Published on Apr 8, 2024 109 

      This weekly update is designed to help you stay informed and relate economic and...

    What Makes Forex Trading Attractive?

    Published on Apr 2, 2024 191 

    In a world where the click of a button can send goods across oceans and...

    Weekly Updates 1/4/24 – 5/4/24

    Published on Apr 1, 2024 98 

    This weekly update is designed to help you stay informed and relate economic and company...

    How to soar higher with Positive Carry!

    Published on Mar 28, 2024 137 

    As US Fed interest rates are predicted to rise 6 times this year, it’s best...

    Contact us to Open an Account

    Need Assistance? Share your Details and we’ll get back to you


    This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

    An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

    Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

    Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

    The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.  

    The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

    The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

    This advertisement has not been reviewed by the Monetary Authority of Singapore.  


    Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
    250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
    Tel: (65) 6230 8133 Fax: (65) 65383066