# kaal:claim:3936876-034

**Claim.** Credit risk is low in digital asset transactions because the transactions are made instantaneously, which removes the counterparty performance window that generates credit risk in traditional custody.

**Type.** mechanism  **Support.** asserted

**Holds when.**

- on chain digital asset transactions

**Source quote.**

> Fortunately, this risk is low in digital asset transactions because transactions are made instantaneously.

**From.** Wulf A. Kaal, Hayley Howe, *Custody of Digital Assets* (2021), III.2 OCC Requirements, page 28

**Cite as.** Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876

**Verify.** sha256 of source PDF `9bc0903d01910460298e754c451f027df4324367359800a98ee8e638d94aff55` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Howe%20-%202021%20-%20Custody%20of%20Digital%20Assets.pdf

**Topics.** risk-and-incentives

**Keywords.** credit-risk, settlement, counterparty-risk, digital-assets

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3411110-003

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.