Capital markets help channel savings into productive investments, and therefore good functioning of capital markets contributes to economic development. Historically, intermediary services have played an important role in the well-functioning of capital markets. However, with the use of information and communication technologies, capital markets are becoming digital and the need for intermediary services in digital capital markets is decreasing. To the author’s best knowledge, there is no study on the decreasing role of intermediary institutions in digital capital markets, and the study was needed due to this gap in the literature. The aim of the study is to show examples from important technological innovations in the capital markets that digitalization in the capital markets reduces the need for intermediary services. These examples have been compiled by reviewing the capital market literature. The findings show that digitalization reduces the profits of intermediaries that provide broker, trader, and underwriter services and reduces the need for them. The pioneers in the implementation of some new technologies have been the intermediaries themselves, due to increased competition. The benefit of digitalization of capital markets has been for individual investors. Technological innovations have made capital markets accessible to individual investors easily and at a low cost, without being restricted by space and time constraints.