Blockchain-Native Securities

Definition ∞ Blockchain-native securities are financial instruments issued and managed directly on a distributed ledger technology (DLT) platform. These securities derive their legal standing and operational functionality from the underlying blockchain. Their existence and transfer are recorded immutably on the ledger, providing enhanced transparency and verifiable ownership. This direct digital issuance contrasts with traditional securities, which often rely on intermediaries.
Context ∞ The market for blockchain-native securities is developing as institutions explore more efficient capital market structures. Discussions focus on interoperability standards between different blockchain platforms and legal clarity regarding ownership and transfer mechanisms. The potential for reduced settlement times and lower operational costs is a key driver for their adoption in financial news.