Corporate Bonds

Definition ∞ Corporate Bonds represent debt instruments issued by corporations to raise capital from investors. These financial products promise periodic interest payments and repayment of the principal amount at maturity. They function as a traditional investment vehicle, providing a fixed income stream to bondholders. Companies utilize corporate bonds to finance operations, expansion, or other corporate initiatives.
Context ∞ In the digital asset space, discussions around corporate bonds sometimes relate to their potential for tokenization. Tokenized corporate bonds could offer increased liquidity, fractional ownership, and faster settlement through blockchain technology. News in this area often covers the intersection of traditional finance with distributed ledger technology, examining how digital representations of these assets might reshape debt markets. Regulatory clarity remains a key area of focus for the wider adoption of such innovations.