ISDA Publishes Standard Definitions for Digital Asset Derivatives

ISDA published new standard definitions for documentation of digital asset derivatives trading.

The ISDA Digital Asset Derivatives Definitions were designed to (i) provide a clear contractual framework trading of digital asset derivatives and (ii) reduce credit and market risks by outlining specific provisions for execution and settlement. The published definitions cover non-deliverable forwards and options on Bitcoin and Ether, with the possibility of adding other digital assets.

The definitions were published in conjunction with an ISDA white paper that addresses legal issues in the digital asset space related to close-out netting and collateral arrangements for digital asset derivatives (see related coverage).