1st Edition

Digital Assets Innovation, Risks, and Regulation

250 Pages 46 B/W Illustrations
by Routledge

Digital assets are fundamentally transforming the global financial system, yet their mechanics and implications remain poorly understood, even among financial professionals. This book offers the first comprehensive and rigorous exploration of the digital assets landscape. The authors lay the technical foundations of digital assets by examining how blockchains such as Bitcoin and Ethereum... Read more

PART I: BLOCKCHAIN AS THE FOUNDATION OF DIGITAL ASSET  1: Introduction to Representative Blockchains  2: The Token Paradigm of Blockchains  3: Blockchains’ Economic Models and Governance Mechanism  4: The Blockchain Impossible Trinity and Its Implications  5: Oracles: The Mechanism to Write Information into Blockchain  6: Cross-chain: The Expansion Mechanism from Chain to Network  PART II: MAJOR TYPES OF DIGITAL ASSETS  7: Tokenization in Theory and in Practice  8: Digital Currencies  9: Tokenized Securities: Case Studies of Daml and Liberty  10: Cryptoassets  11: Digital Renminbi: From 1.0 to 2.0  PART III: PARTICIPANTS IN THE DIGITAL ASSET MARKETS  12: Custodial Wallets and Custodians  13: Digital Asset Exchanges: A Case Study of Coinbase  14: Information Intermediaries in Digital Assets  PART IV: CONTRACTUAL ARRANGEMENTS IN DIGITAL ASSET MARKETS  15: Overview of Decentralized Finance (DeFi)  16: Decentralized Lending  17: Automated Market Makers (AMMs)  PART V: PRODUCTS IN DIGITAL ASSET MARKETS  18: Exchange-Traded Products (ETPs) for Digital Assets  19: Digital Asset Futures and Options  PART VI: ACTIVITIES IN DIGITAL ASSET MARKETS  20: Economic Attacks in the DeFi Ecosystem  21: Liquidity Mining and Staking  22: The Rise and Mechanics of the Digital Asset Treasury Model  PART VII: RISKS IN DIGITAL ASSET MARKETS  23: Systemic Fragility of the Cryptoasset Market  24: The Relationship between the Cryptoassets and Mainstream Financial Markets  PART VIII: REGULATION OF DIGITAL ASSET MARKETS  25: FATF Requirements on AML and CFT for Virtual Assets  26: The Trump Administration’s Digital-Asset Policy  27: The EU Markets in Crypto-Assets Regulation (MiCA)  28: Risks and Regulation of Stablecoins

Biography

Chuanwei Zou is President of Jiangsu Jinke Research Institute on Digital and Technology Finance, Joint Secretary-General of Jiangsu Financial Society, and Honorary Head of Research at Bank of Jiangsu. His research interests cover digital finance, banking, and financial regulation.

Chen Cui is Associate Partner at HashKey RWA. Her research covers technology innovation and business models, the economic models and governance mechanisms of application layer blockchain protocols, and global developments in digital asset regulation.

Yixin Cao is an independent researcher in blockchain systems and crypto market structure. With a Ph.D. in Physics from Shanghai Jiao Tong University, she combines data science and economics to study DeFi, transaction behavior, and the evolving logic of decentralized systems.

Puyu Wang is a Partner at HashKey RWA. His research and professional focus center on Web3 token economics design and the tokenization of Real World Assets (RWAs). He specializes in navigating legal frameworks, evaluating tokenization protocols, and unlocking the potential of RWAs as collateral within DeFi ecosystems.

Yaqiang Wang is a research fellow at Jiangsu Jinke Research Institute on Digital and Technology Finance. His research interest focuses on the development trajectory of frontier technologies, including AI and Blockchain, and relevant governance challenges and policy solutions.