All termsOwnership and Legal StructureWorth knowing
Bankruptcy Estate
A bankruptcy estate generally refers to the assets and legal interests that become subject to an insolvency or bankruptcy process when a person or company fails. The exact treatment of assets depends on the applicable law and legal structure.
Why it matters to you
For RWA investors, an important question is whether the underlying assets could become part of an issuer's or another party's bankruptcy estate. Legal separation, custody arrangements and the structure of the investment can therefore materially affect what happens if one of the companies involved fails.
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