Definition ∞ The capability of integrating existing traditional financial or information technology systems with new blockchain-based digital asset platforms. This involves developing interfaces, APIs, and middleware to facilitate data exchange and transaction processing between disparate architectures. Legacy system connectivity is essential for institutions looking to leverage blockchain technology without completely overhauling their established infrastructure. It enables a gradual transition and allows for hybrid solutions that combine the strengths of both systems.
Context ∞ The challenge of achieving effective legacy system connectivity is a constant topic in news covering enterprise blockchain adoption and central bank digital currency initiatives. Many financial institutions face significant hurdles in bridging their decades-old systems with distributed ledger technologies, often requiring substantial investment in new integration layers. Progress in this area is critical for accelerating the mainstream acceptance and utility of digital assets within regulated financial markets.
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