Market Structure Change

Definition ∞ Market structure change refers to significant alterations in the fundamental organization, rules, or operational mechanisms of a financial market. These changes can result from technological advancements, new regulatory policies, or shifts in participant behavior. In the digital asset context, this includes the evolution from purely decentralized exchanges to hybrid models, the emergence of institutional-grade trading platforms, or new regulatory frameworks governing digital asset trading. Such shifts redefine how assets are traded, settled, and overseen, impacting efficiency and access.
Context ∞ The digital asset space is continuously undergoing market structure change, driven by innovation and evolving regulatory landscapes. A key discussion involves the balance between fostering innovation and ensuring investor protection and market stability. Future developments will likely see further convergence of traditional financial market structures with blockchain-native approaches, particularly concerning custody, clearing, and settlement. These structural adjustments are vital for the long-term maturation and mainstream acceptance of digital assets.