Technical Definition

Digital Asset Service Provider

Under the GENIUS Act, a digital asset service provider is generally a business that performs specified digital-asset exchange, transfer, custody, or related financial services for compensation or profit.

By Crypto University Editorial
CustodyExchangePayment Stablecoin

✦ Key Insight

Digital asset service providers can have regulatory responsibilities governing which stablecoins they make available to U.S. customers and how they operate.

✕ Common Misconceptions

Regulatory definitions vary between jurisdictions. Do not assume DASP, VASP, CASP, and similar terms are legally interchangeable.

Detailed Explanation

The term captures businesses involved in common digital-asset services. Depending on the activity and legal framework, this may include exchanges, custodians, payment providers, and similar intermediaries.

In Practice

“A centralized platform that exchanges customers' dollars for crypto and holds customer assets may perform activities included within the definition.”

Dig Deeper

Custody

Custody is the safekeeping and control of digital assets or the private keys needed to access them.

Exchange

A crypto exchange is a platform that facilitates buying, selling, converting, or trading digital assets.

Permitted Payment Stablecoin Issuer

A permitted payment stablecoin issuer is a U.S. entity legally authorized under the GENIUS Act framework to issue payment stablecoins.