Financial Operations

Definition ∞ Financial operations encompass the activities an organization conducts to manage its monetary resources and meet its financial commitments. This includes budgeting, accounting, treasury functions, and risk oversight. In the digital asset industry, this extends to managing cryptocurrency holdings, liquidity, and participation in decentralized finance protocols.
Context ∞ The emergence of digital assets and blockchain technology significantly alters traditional financial operations, requiring new methods for asset custody, reporting, and regulatory compliance. Crypto news often discusses how financial institutions adapt their operational frameworks to incorporate digital currencies, emphasizing secure storage and adherence to evolving regulations. The current discourse addresses developing robust practices for managing digital asset portfolios and associated financial exposures.