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Digital Asset Financialization

Definition

Digital asset financialization is the process of integrating cryptocurrencies and other digital assets into traditional financial products and services. This involves creating regulated investment vehicles like exchange-traded funds (ETFs), offering institutional custody solutions, and developing derivatives markets based on digital assets. It represents a significant step towards legitimizing digital assets within the broader financial system, allowing a wider range of investors to gain exposure. The process often necessitates compliance with existing financial regulations and robust risk management practices.