Market Digitization

Definition ∞ Market digitization refers to the process of transforming traditional financial markets and asset classes into digital formats, often leveraging blockchain and distributed ledger technologies. This involves converting physical assets or conventional securities into digital tokens, enabling their issuance, trading, and settlement on digital platforms. The aim is to enhance efficiency, transparency, and accessibility while reducing intermediaries and operational costs. It represents a fundamental shift in market infrastructure.
Context ∞ Market digitization is a pervasive topic in crypto news, with frequent reports on central bank digital currencies, tokenized securities, and blockchain-based trading platforms. Discussions often explore the regulatory implications and technological challenges of this transition, including interoperability between digital and traditional systems. A critical future development involves the establishment of comprehensive legal and regulatory frameworks that support the widespread adoption of digital market infrastructure. This transformation holds the potential to redefine global financial landscapes.