Secondary Market Modernization

Definition ∞ Secondary market modernization involves updating and improving the systems and processes for trading existing financial instruments. In the context of digital assets, this refers to enhancing the efficiency, liquidity, and accessibility of platforms where tokenized securities, non-fungible tokens, and other digital assets are exchanged after their initial issuance. It includes implementing blockchain technology for faster settlement, reducing intermediaries, and expanding trading hours. The goal is to create more robust and transparent trading environments.
Context ∞ The current discussion around secondary market modernization often highlights the potential of blockchain to revolutionize traditional asset trading, making it more efficient and cost-effective. A key debate involves integrating decentralized exchanges with regulated financial institutions and ensuring compliance within these new structures. Future developments will likely include the widespread adoption of tokenized assets on institutional-grade secondary markets and the establishment of global interoperability standards for digital asset trading.