Capital Markets Innovation

Definition ∞ Capital Markets Innovation refers to the introduction of novel financial instruments, technologies, or processes within traditional and digital financial systems. It aims to enhance efficiency, accessibility, liquidity, and risk management in the exchange of financial assets. This encompasses advancements like decentralized finance (DeFi) protocols, tokenized securities, and new trading infrastructure designed to alter how capital is raised, managed, and deployed. Such developments are reshaping the architecture of financial services globally. Context ∞ The current discourse on Capital Markets Innovation is heavily influenced by the integration of blockchain technology and digital assets into mainstream finance. News often covers the development of central bank digital currencies (CBDCs), the tokenization of real-world assets (RWAs), and the regulatory frameworks attempting to govern these new financial products. Understanding this innovation is key to grasping the evolving landscape of investment opportunities and the potential disruption of established financial intermediaries.