Digital Asset Eligibility

Definition ∞ Digital asset eligibility pertains to the criteria an asset must meet to be accepted for specific financial activities, platforms, or regulatory classifications. These criteria often relate to liquidity, market capitalization, security audits, and adherence to compliance standards. It determines an asset’s utility and market reach.
Context ∞ Establishing clear digital asset eligibility standards is a critical aspect of regulatory frameworks, particularly for institutional participation in the crypto market. Debates persist regarding which digital assets qualify for investment products, collateralization, or inclusion in regulated trading venues, influencing market development and investor protection.