Financial Market Digitization

Definition ∞ Financial Market Digitization refers to the ongoing transformation of traditional financial markets through the widespread application of digital technologies. This process involves converting conventional financial instruments and processes into digital formats. It seeks to enhance efficiency, reduce operational costs, and broaden access to financial services. This shift impacts trading, settlement, and asset management across the industry.
Context ∞ For digital assets, financial market digitization is a key driver, as blockchain technology enables the tokenization of real-world assets and the creation of new digital market infrastructures. News often reports on initiatives by stock exchanges or financial institutions to digitize securities or streamline post-trade processes using distributed ledger technology. This trend signifies a fundamental change in how financial value is represented and exchanged globally.