Principle 19 of Unidroit DAPL addresses the effectiveness of proprietary rights in digital assets in insolvency proceedings. This principle states that a proprietary right in a digital asset that is effective against third parties is also effective against the insolvency representative, creditors and any other third party in insolvency-related proceedings. This principle is based on the assumption that if a digital asset can be the object of property rights, these rights should be protected in the event of insolvency. However, this protection is not absolute. Principle 19(2) clarifies that it does not affect the application of other legal rules applicable in an insolvency proceeding, such as those relating to the classification of claims, the avoidance of fraudulent transactions or the enforcement of rights in assets controlled by the insolvency representative. The Commentaries to Principle 19 illustrate its application in different scenarios. Three main situations are distinguished: the insolvency of the holder of the security interest in the digital asset, the insolvency of the debtor who has granted a security interest in the digital asset, and the insolvency of the custodian of the digital asset. Principle 19 focuses on the first two situations, while the insolvency of the custodian is dealt with in Principle 13. It is important to note that Principle 19 does not seek to elaborate on the substance of insolvency in relation to digital assets, but merely sets out general principles for the protection of proprietary rights in this context. The determination of specific issues, such as the valuation of digital assets or the invalidation of transactions, is left to the applicable national laws.