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On-Chain Securities

Definition

On-chain securities represent traditional financial assets, such as stocks, bonds, or funds, that have been digitized and recorded on a blockchain. These digital tokens grant ownership rights or claims to underlying assets, leveraging blockchain technology for improved transparency, efficiency, and fractionalization. The recording on a distributed ledger enables automated settlement, simplified transfer, and reduced intermediation. Their issuance and transfer are governed by smart contracts and subject to regulatory oversight.