Digital Asset Market Structure

Definition ∞ Digital asset market structure refers to the organizational framework and operational mechanisms that govern the trading, settlement, and custody of cryptocurrencies and other digital assets. This includes the various types of trading venues, liquidity providers, and post-trade services. It also encompasses the underlying technological protocols and network designs that facilitate these activities. Understanding this structure is essential for analyzing market efficiency and regulatory needs.
Context ∞ The digital asset market structure is currently characterized by a blend of centralized exchanges, decentralized protocols, and novel hybrid models, presenting challenges for consistent regulatory application. Key discussions involve harmonizing regulatory approaches across these diverse structures to ensure investor protection and market integrity. Critical future developments include the evolution of integrated regulatory frameworks that account for both the centralized and decentralized elements of digital asset trading.