Definition ∞ Asset management digitization is the conversion of traditional asset management processes into digital formats. This involves leveraging blockchain and other distributed ledger technologies to streamline operations, enhance transparency, and enable new forms of asset ownership and transfer. It encompasses the digital representation of real-world assets and financial instruments. The objective is to modernize investment strategies and operational frameworks within the financial sector.
Context ∞ The ongoing discussion centers on regulatory frameworks keeping pace with technological advancements in digital asset management. A critical development involves the standardization of tokenization protocols to facilitate broader institutional adoption. Market participants are observing how these digital shifts will impact liquidity and accessibility for various asset classes.