Definition ∞ A bank holding company is a corporation that owns or controls one or more banks, but does not itself conduct banking operations. These entities often manage a portfolio of financial subsidiaries, including non-banking firms, subject to regulatory oversight. Their structure permits diversification into various financial services while maintaining control over banking institutions. This organizational form allows for centralized management and capital allocation across diverse financial ventures.
Context ∞ In the digital asset space, bank holding companies face regulatory considerations regarding their participation in cryptocurrency markets. Regulators are evaluating how existing frameworks for traditional finance apply to digital asset custody, trading, and stablecoin issuance. A key discussion centers on the appropriate prudential standards and risk management protocols for these companies as they consider engaging with blockchain technology and digital currencies.