INNOVATIVE POTENTIAL OF FINANCIAL MARKETS: FROM DIGITAL CURRENCIES TO ASSET TOKENIZATION

Abstract

The rapid advancement of digital technologies is reshaping financial markets. Emerging instruments, such as digital currencies and the tokenization of assets, offer new ways to enhance the efficiency of capital markets, attract investment, and support overall economic growth. Digital currencies-including cryptocurrencies and state-issued digital money-allow transactions to occur without intermediaries, which improves transparency, accelerates processing times, and reduces costs. Meanwhile, asset tokenization enables tangible assets, such as real estate, securities, or intellectual property, to be represented as digital tokens that can be bought, sold, or exchanged on dedicated platforms, thereby increasing liquidity and expanding investment possibilities. Despite these benefits, several challenges remain, including legal and regulatory issues, cybersecurity concerns, and the risk of market manipulation. To fully realize the advantages of these innovations, it is crucial to implement effective oversight mechanisms, promote financial literacy, and ensure investor protection. This study examines the opportunities and challenges associated with digital financial tools in Ukraine and considers their potential role in integrating the national economy into global financial systems.