Banking Integration

Definition ∞ Banking integration refers to the process by which traditional financial institutions connect their services and systems with decentralized finance (DeFi) protocols or digital asset platforms. This connection allows for the seamless transfer of assets and information between legacy banking infrastructure and the blockchain ecosystem. It signifies a crucial bridge enabling institutional participation and broader adoption of digital assets.
Context ∞ The ongoing development of banking integration is a significant trend influencing the accessibility and legitimacy of digital assets. Discussions often center on regulatory compliance, security protocols, and the technical challenges of interfacing disparate financial systems. The success of these integrations will likely shape the future landscape of both traditional finance and the cryptocurrency market, impacting institutional investment strategies and retail user experiences.