Digital assets: definition, how they work, regulation and strategic implications

Bitcoin, stablecoins, tokenisation and NFTs: in just a few years, digital assets have evolved from a predominantly technological field into a strategic issue for banks, businesses, institutional investors, governments and central banks. In 2026, major financial institutions around the world are announcing a growing number of tokenisation projects.

The development of digital assets is part of a deeper transformation of financial services: value can now be represented, held and transferred on blockchain infrastructures that can operate 24/7, with transactions that can potentially be near-instantaneous and programmable.

But what exactly does the term digital asset cover? What are the main types of assets involved? And which regulatory frameworks apply in Europe and around the world?

What are the main categories of digital assets?

There is no single classification of digital assets. Categories evolve with technological innovation, new use cases and changes in legal and accounting frameworks. Technical terminology also remains prevalent: token, for example, is a widely used term.

The classification below outlines the main categories found today.

Cryptocurrencies

It all began with the launch of Bitcoin in 2009 and its concept of decentralised electronic payments without intermediaries. Operating on a public blockchain open to everyone and built on open-source software, Bitcoin inspired the creation of thousands of other freely tradable digital assets, historically known as cryptocurrencies.

The largest, including Bitcoin, Ether and Solana, can be bought and sold on specialist platforms and have become an investment asset class in their own right.

In keeping with their decentralised origins, these cryptocurrencies can also be transferred directly between holders, without a bank or centralised platform, provided users understand how to use wallets and cryptographic keys.

Beyond their market value, some crypto-assets also serve a practical purpose: they may be required for a blockchain to operate or provide access to a particular service. MiCA uses the term utility token for certain crypto-assets that provide access to a good or service supplied by their issuer.

Stablecoins

Stablecoins are crypto-assets designed to maintain a stable value, generally by reference to an official currency.

They most commonly take the form of tokens issued on a blockchain by a company that holds corresponding reserves intended to support their value and redemption. Several European financial institutions have launched euro-denominated stablecoins with the aim of maintaining a value of €1 per unit.

Created natively on a blockchain, stablecoins can technically be transferred 24/7, within seconds or minutes depending on the infrastructure used.

Their operation is nevertheless subject to extensive regulation. In Europe, MiCA imposes specific rules on electronic money tokens (EMTs) and asset-referenced tokens (ARTs). Some regulatory requirements can also be embedded directly in smart contracts, including transfer restrictions, token freezes and controls relating to particular addresses.

Central bank digital currencies

Many central banks are currently exploring or testing central bank digital currencies (CBDCs).

Their objectives and design can vary significantly from one country to another. A key distinction is between retail projects, intended for the general public, and wholesale projects, reserved for financial institutions and market infrastructures.

In Europe, financial market participants are particularly interested in work on a wholesale digital euro, which went live in a first version in Septembre 2026. The retail digital euro, meanwhile, is planned for 2029 and raises considerably more questions and public debate, particularly around implementation costs and the privacy of transactions conducted in this currency.

A key point: a CBDC does not necessarily use a blockchain. Its defining characteristic is that it is digital money issued by a central bank, rather than the technology used.

Tokenised financial assets

Tokenisation involves representing an existing asset or right as a token on a blockchain. Shares, bonds, fund units and other financial instruments can therefore be represented and traded on DLT infrastructures. The term security token is also used.

Combined with digital means of payment such as stablecoins or central bank money, tokenisation creates the potential for financial transactions over much longer operating hours, with potentially instantaneous settlement and greater process automation.

Regulation naturally continues to apply. Where a token legally qualifies as a financial instrument, it falls outside the scope of MiCA and is subject to the European framework governing financial instruments and markets, including MiFID II.

Other digital assets

The combination of blockchain, tokens and smart contracts enables digital assets with a wide range of uses. Examples include:

• Tokenisation of non-financial assets: some projects link token ownership to rights over gold, works of art, bottles of wine, collectibles or other physical assets. Tokenisation can make them easier to trade and divide into fractional interests, while custody and logistics for the underlying assets remain the responsibility of specialist providers.
• NFTs (non-fungible tokens) are crypto-assets whose individual units can be unique and cannot necessarily be exchanged on a like-for-like basis. Their first wave of adoption was particularly associated with digital art and digital items. The speculative excesses and widespread fraud seen during that period significantly damaged their reputation, but did not eliminate the technology’s potential uses in certification, ownership or rights management.
• JONUM (Jeux à Objets Numériques Monétisables  or games involving monetisable digital objects in English) refers to a specific French framework applicable to certain games in which players can obtain digital objects that can be monetised. This regime is separate from MiCA.
• Finally, major banks are currently experimenting with tokenised deposits. The aim is not necessarily to create a new currency or crypto-asset, but to use the capabilities of blockchain infrastructure to represent and transfer existing bank deposits. To explore this topic further, read our white paper on tokenised deposits.

Digital asset regulation and taxation

From France’s PACTE Act and PSAN status to the European MiCA Regulation

France was one of the first European countries to establish a dedicated framework for crypto-assets, through the PACTE Act of 2019 and the status of Digital Asset Service Provider (Prestataire de Services sur Actifs Numériques, or PSAN).

The European Union subsequently harmonised this framework through the Markets in Crypto-Assets Regulation (MiCA), whose main provisions became applicable in 2024.

MiCA governs, among other activities, the issuance of certain categories of crypto-assets and stablecoins, as well as providers offering services such as custody, the operation of trading platforms, exchange and order execution.

The European regime now centres on Crypto-Asset Service Providers (CASPs), known in French as Prestataires de Services sur Crypto-Actifs (PSCAs).

For financial market participants, this is a major development: digital assets are no longer a market operating on the fringes of regulated finance, but a set of activities being progressively integrated into the European financial framework.

Internationally, approaches nevertheless remain very different. In the United States, the framework has become significantly more structured since 2025, particularly for stablecoins, while the authorities are seeking to clarify the broader regulatory treatment of crypto-assets. In the United Kingdom, the authorities are progressively developing a regime to bring the main crypto-related activities within the financial services framework. Singapore, led by the Monetary Authority of Singapore (MAS), combines stringent requirements for service providers with an active policy of experimentation in tokenisation and digital payments. Mainland China, by contrast, maintains substantial restrictions on cryptocurrency-related activities while investing in blockchain technologies and its central bank digital currency, the e-CNY.

This diversity illustrates one of the main international challenges facing digital assets: the same technology can be subject to very different frameworks depending on the jurisdiction, the nature of the asset and the service provided.

Digital asset taxation and reporting obligations

For businesses, the accounting and tax treatment of digital assets depends heavily on the asset involved. Buying or selling Bitcoin, a stablecoin, an NFT or a tokenised money market fund unit does not necessarily receive the same treatment.

For individuals, holding and, in particular, disposing of crypto-assets can also give rise to tax and reporting obligations.

The taxation of gains on digital assets depends on the holder’s circumstances, the nature of their activity and the relevant jurisdiction. The rules applicable to an individual, a professional investor and a business differ considerably. Some countries, such as France, tax individuals’ capital gains on the sale of digital assets, which must be reported in their income tax returns. Others, such as Switzerland and Singapore, have chosen to exempt them entirely, while some exemptions are conditional, as in Germany, where a minimum holding period applies.

Why are digital assets becoming a strategic priority?

More than fifteen years after the launch of Bitcoin, and several years after the first regulatory frameworks emerged, blockchain and digital assets are entering a new phase of development.

The shift in US policy towards crypto-assets, the application of MiCA in Europe and accelerating investment by banks and market infrastructures are creating fresh momentum for the tokenisation of finance.

Although the cryptocurrency investment market remains substantial and now involves around 10% of Europeans, digital assets have much broader uses.

Value-added financial services are already multiplying: cross-border payments using stablecoins, transfers available at weekends, tokenised money market funds, blockchain-based settlement, tokenised bonds and fund units, and more.

From private banking to asset management, and from investment banking to market infrastructures, the entire financial industry is now affected. The most agile participants will be able to adapt their business models to benefit from these innovations. Others will, at a minimum, need to prepare as central banks, central securities depositories, exchanges and other market infrastructures roll out their own tokenised services.

Adoption also extends beyond financial institutions. In several parts of Asia, Africa and Latin America, individuals already use stablecoins extensively for payments, international transfers and as a store of value. Businesses are also beginning to explore these technologies, attracted by the prospect of faster payments, 24/7 access to liquidity and new tokenised investment products.

The gradual emergence of programmable, 24/7 finance, built partly on digital assets, is becoming a reality. It brings new opportunities for both users and providers of financial services.

The strategic question is therefore no longer simply whether to invest in cryptocurrencies. Financial institutions and large companies now need to understand how blockchain is progressively transforming the underlying infrastructure of finance: assets, money, payments, investment and transactions.

Frequently asked questions

What is a digital asset?

In the financial sector, a digital asset is a digital representation of value or a right that can be held and transferred using a blockchain or distributed ledger technology (DLT). Cryptocurrencies such as Bitcoin and Ether, stablecoins and various types of tokens fall within this category. The European MiCA Regulation uses the more precise term crypto-asset.

What is the difference between a digital asset, a crypto-asset and a cryptocurrency?

Digital asset is a broad term used in finance for assets based on blockchain or DLT. Crypto-asset is the legal term used notably in the European MiCA Regulation. A cryptocurrency is a particular category of crypto-asset, such as Bitcoin or Ether. Not all digital assets are therefore cryptocurrencies: stablecoins, certain tokens and tokenised financial assets serve different purposes and operate in different ways.

What are the main types of digital assets?

The main categories include cryptocurrencies such as Bitcoin and Ether, stablecoins, utility tokens and certain NFTs. A broader view of blockchain-based finance also includes tokenised financial assets, such as bonds or fund units represented as tokens. Other forms of digital money, such as tokenised deposits and central bank digital currencies (CBDCs), also contribute to the transformation of financial infrastructures without necessarily qualifying as crypto-assets under MiCA.

What is MiCA and how does it regulate crypto-assets in Europe?

MiCA (Markets in Crypto-Assets) is the European regulation establishing a harmonised framework for crypto-assets across the European Union. It governs, among other activities, certain crypto-asset issuances, stablecoins and Crypto-Asset Service Providers (CASPs) offering services such as custody, exchange and order execution. Some assets that use a blockchain remain subject to other regulations, including tokenised financial instruments.

Why do digital assets matter to banks and businesses?

Digital assets create the potential for finance that is more widely available 24/7, programmable and automated. Stablecoins, tokenisation and smart contracts can accelerate certain payments, automate transactions and enable financial assets to settle on a blockchain. For banks, asset managers, businesses and market infrastructures, the implications therefore go beyond cryptocurrency investment: they increasingly extend to payments, money, investment, treasury management and financial infrastructures themselves.