Definition ∞ Investment firms are financial institutions that manage funds for clients, typically individuals or corporations, by buying and selling financial instruments. These firms provide services such as portfolio management, financial advisory, and brokerage. They operate under specific regulatory frameworks designed to protect investors and ensure market stability. Their activities play a significant role in capital allocation and market liquidity.
Context ∞ Investment firms are increasingly exploring and integrating digital assets into their service offerings, a trend closely followed in crypto news. Their entry into the digital asset space often signals growing institutional acceptance and can lead to increased market liquidity and stability. Regulatory discussions frequently center on how existing rules for investment firms apply to their digital asset activities, particularly concerning client protection and risk management.