Financialization refers to the increasing dominance of financial markets, financial institutions, and financial motives in the operation of domestic and international economies. This process involves a shift where financial activities gain greater weight relative to traditional productive activities, often resulting in an expansion of financial instruments and services. In the digital asset space, it describes the application of traditional financial concepts and products to cryptocurrencies and blockchain-based assets. It represents the growing integration of digital assets into established financial structures.
Context
In the context of digital assets, financialization is a widely discussed trend, particularly concerning the emergence of crypto derivatives, lending platforms, and institutional investment products. News often covers regulatory responses to this trend, aiming to mitigate systemic risks and protect investors. A significant future development involves the further standardization and integration of digital assets into global financial markets, requiring robust frameworks for custody, trading, and risk management to support their increasing adoption by mainstream finance.
This new NFT Bond primitive tokenizes real-world corporate debt, transforming illiquid, opaque fixed-income assets into composable, high-yield DeFi collateral.
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