Decentralized Asset Management

Definition ∞ Decentralized asset management refers to the administration and oversight of digital assets through non-custodial, blockchain-based protocols rather than traditional centralized financial institutions. Users retain direct control over their funds via smart contracts, which execute predefined investment strategies or allocation rules. This approach aims to provide greater transparency, accessibility, and censorship resistance in managing investment portfolios. It represents a significant departure from conventional financial services.
Context ∞ The growth of decentralized asset management platforms is a recurring theme in DeFi news, offering individuals greater autonomy over their digital wealth. Key discussions often center on the security audits of the underlying smart contracts and the user experience for non-technical participants. The regulatory landscape for such services remains undefined in many jurisdictions, presenting both opportunities and compliance challenges. The potential for more inclusive and globally accessible financial products is a major driver of this sector.