Definition ∞ Capital onboarding is the process by which fiat currency is converted into digital assets or made available within the cryptocurrency ecosystem. This involves moving traditional funds through exchanges or other platforms into blockchain-based systems. It represents the initial step for individuals and institutions to gain access to digital markets. Efficient capital onboarding is vital for liquidity and market expansion.
Context ∞ News articles often cover innovations and regulatory changes impacting capital onboarding, as seamless entry for new funds is critical for market growth. Debates focus on balancing regulatory compliance, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, with user experience. Improving the speed and cost-effectiveness of this process is a constant objective for platforms.