Definition ∞ Liquid ownership refers to the ability to easily and quickly convert ownership of an asset into cash or other assets without significant loss of value. In the context of digital assets, liquid ownership is often facilitated by blockchain technology, where tokens or NFTs can be readily traded on decentralized or centralized exchanges. This characteristic is crucial for market efficiency and allows owners to realize the value of their holdings promptly. It reduces friction in transferring asset rights.
Context ∞ News frequently highlights the importance of liquid ownership for the growth and stability of digital asset markets. Protocols designed to enhance liquidity for less common assets are often featured. Regulatory efforts to ensure fair and orderly markets for liquid digital assets are a continuous area of focus.
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