DIGITAL ASSETS
Institutional discipline for an emerging asset class.
LIAM evaluates digital assets through the same principles applied across traditional portfolios: portfolio role, liquidity, custody, operational controls, counterparty exposure and disciplined risk management.
AREAS OF FOCUS
Understand both the asset and the infrastructure around it.
Bitcoin
Portfolio role, volatility, liquidity, macro sensitivity, custody and implementation considerations.
Stablecoins
Reserve quality, issuer risk, redemption mechanics, settlement use cases and regulatory developments.
Digital-Asset Infrastructure
Custody, exchanges, tokenization, settlement rails and other institutional market infrastructure.
Portfolio Construction
Position sizing, liquidity budgeting, scenario analysis and interaction with traditional portfolio exposures.
RISK FRAMEWORK
Digital assets require institutional controls.
Volatility
Digital-asset prices can move rapidly and materially, making position sizing and risk budgeting essential.
Custody
Key management, wallet controls, segregation, recovery procedures and institutional custody arrangements are central to operational risk.
Liquidity
Market depth and execution quality can vary significantly across assets, venues and periods of stress.
Counterparty Risk
Exchanges, custodians, issuers and service providers can introduce financial and operational exposure.
Regulatory Risk
Rules governing digital assets continue to evolve across jurisdictions and may affect access, custody, trading and reporting.
Operational Risk
Technology, transaction processes, wallet controls and internal governance should be designed to reduce avoidable errors and losses.
DIGITAL ASSETS IN CONTEXT
Approach digital assets with institutional controls.
LIAM does not treat digital assets as a substitute for disciplined portfolio construction. Any allocation should be evaluated against the investor’s objectives, liquidity needs, risk tolerance and total portfolio exposure.