Yesterday the International Swaps and Derivatives Association (ISDA) published standard definitions for digital asset derivatives. It also released one of two whitepapers on what happens in the event of bankruptcy.
The initial set of ISDA definitions covers non-deliverable forwards and options for Bitcoin and Ether. However, the association sees this as a starting point that could also include tokenized securities and other DLT-based assets in the future. The definitions don’t just apply to data but also to processes to enable integration with the Common Domain Model (CDM).
Back in 2018, ISDA first developed the common domain model (CDM), which defines both the data and the processes for derivatives such as interest rate swaps and credit default swaps. While the CDM isn’t designed purely for DLT or smart contracts, it provides a basis for automating derivatives using DLT.
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