Harmonized Understanding

Digital Asset Classification

Digital Asset Classification System

As digital assets evolve, understanding their complexity is crucial. The lack of uniform standards challenges valuation and comparison. The Particula Digital Asset Classification System (PDACS) provides a comprehensive taxonomy for digital assets, focusing on their unique product characteristics. It equips stakeholders with a unified communication platform to anticipate risks and identify opportunities accurately.

What's the Core Premise?

The process of tokenization or the addition of smart contract logic fundamentally changes all key product features of any underlying asset. This change affects operational infrastructure, valuation mechanisms, fiscal compliance, and the applicable legal framework, requiring a new perspective on asset classification.

Infographic showing the process of origination, tokenization and distribution of a tokenized asset
Tokenization is changing all product features

Tokenization Creates a Separate Asset Class with Unique Product Features

To fully understand these unique features, we analyze tokenized assets across three key layers: Asset, Method, and Integration. Each layer provides a distinct perspective on how tokenization redefines traditional asset principles and introduces new complexities.

Asset Layer

The Asset Layer evaluates the token based on its underlying asset, distinguishing between analog and digital assets, and whether it's a single asset or a collective basket.

Method Layer

The Method Layer assesses the token's manufacturing process, whether it's tokenizing an existing analog asset or creating a new digital asset directly on-chain.

Integration Layer

The Integration Layer examines the product’s structural nuances, including smart contract functionalities and issuer terms, focusing on ownership rights and legal classifications.

Mastering Digital Asset Classification

Download the PDACS framework to gain a clear understanding of digital asset classification, enhancing market transparency and informed decision-making.

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