Investment Banking

Definition ∞ Investment banking involves specialized financial services provided to corporations, governments, and institutional clients, primarily concerning capital raising and mergers and acquisitions. These services include underwriting new stock and bond issues, advising on corporate restructuring, and facilitating complex financial transactions. Investment banks act as intermediaries between entities seeking capital and investors providing it. They play a critical role in the functioning of global financial markets.
Context ∞ Investment banking is increasingly exploring the integration of blockchain technology and digital assets into its service offerings. Discussions often center on the potential for tokenized securities to streamline capital markets and reduce settlement times. Regulatory uncertainties surrounding the classification and issuance of digital assets present a significant challenge for traditional investment banks. Future developments will likely see more hybrid models that blend conventional financial services with blockchain-native solutions.