Definition ∞ Emerging Market Debt refers to financial obligations issued by governments or corporations in developing countries. This debt can be denominated in local currency or a foreign currency. It typically carries higher yields but also higher risks compared to debt from developed economies. Investors seek these instruments for potential growth and diversification. These debt instruments play a significant role in global finance.
Context ∞ The intersection of emerging market debt with digital assets is a growing area of discussion, particularly concerning the potential for blockchain technology to streamline debt issuance and trading. Some analysts predict that tokenized emerging market debt could attract new investors by improving liquidity and accessibility. However, volatility in digital asset markets and regulatory uncertainties present hurdles.