Definition ∞ Financial system linkage refers to the connections and interdependencies between various components of the global financial system, including traditional banks, investment firms, and emerging digital asset platforms. These connections allow for the flow of capital, information, and risk across different entities and markets. Robust linkage is crucial for overall market stability and efficiency.
Context ∞ The discussion around financial system linkage in crypto news often addresses the increasing connections between decentralized finance and conventional financial institutions. This situation involves both opportunities for greater efficiency and potential systemic risks if these linkages are not properly managed. Regulatory bodies are closely observing these developments to ensure financial stability and consumer protection.
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